Multi-family construction is a growing industry in Chicago and the suburbs, with more and more buildings being constructed every day. Multi-family buildings are an excellent investment in 2024. However, the cost to build multi-family complexes can spiral out of control quickly if not managed effectively. ETI Construction is a leading provider of affordable luxury for multi-family projects. In this article, we will discuss our top 15 tips for reducing construction costs for multi-family projects in Chicagoland. Our goal is to help you maximize your return on investment while still delivering a luxurious, high-quality product. 

15 Tips for Reducing Construction Costs for Multi-Family Projects

U.S. construction costs are set to increase between 3% and 6% in 2024, according to a report published by Currie & Brown. That is why it is more important than ever to find ways to reduce costs when building your multi-family residence.  

Below are our 15 top tips for reducing construction costs for multi-family projects: 

• Choose the Right Construction Company 

The number one way of reducing construction costs for multi-family projects is to partner with the right contractor. Make sure to choose an experienced contractor who specializes in multi-family construction. Multi-family construction is a specialized field. Partnering with an experienced contractor will help you design an efficient, cost-effective, multi-family building.

• Decide Whether to Build or Renovate

If building a brand new multi-family complex is too expensive for you at the moment, consider renovating an older multi-family property instead. ETI Construction offers expert multi-family restoration and renovation services. This can be a less expensive way to invest in multi-family real estate.  

• Minimize Common Spaces 

While corridors, elevators, and stairwells are necessary in multi-family projects, they do not pay the rent or enhance residents’ experiences. Reducing these and other non-revenue-generating spaces can decrease construction and operating costs. The space you save from these areas can go toward additional units – or making units larger.

• Choose an Efficient Building Shape 

While complex designs might look good, simple rectangular building shapes are more cost-effective than complex designs. They require fewer materials and are simple to construct, which helps reduce your construction costs.

• Utilize Value Engineering

Value engineering is a systematic and organized approach to providing the necessary functions in a project at the lowest cost possible. This might involve simplifying the layout design, reducing the number of materials used, and streamlining the construction process.

• Prioritize Energy Efficiency

Energy efficient features can help you reduce ongoing operating costs. These features might include high-performance windows, insulation, and energy-efficient appliances. This will help you save money on your property in the long run and might help you qualify for tax credits and other financial incentives. 

• Optimize the Layout

In order to keep construction costs low, make sure to maximize usable space. You can opt for open floor plans – which keeps costs low due to minimized walls and materials. Open floor plans also make your units more appealing to potential tenants. 

• Choose the Right Building Materials 

Choosing the right materials for your multi-family property is an important decision. If you want to choose luxurious finishes like countertops and appliances, then you will need to cut costs in other areas. 

• Buy Materials in Bulk

If you still want to choose luxurious materials for your multi-family property, you can reduce costs by buying materials in bulk. Buying materials in bulk is effective when building a large property like a multi-family complex and saves you money.

• Plan for Longevity 

It is important to plan for longevity and build with durability in mind. This will save you money down the road on maintenance and repairs. 

• Manage Risk 

To save yourself money in the long run, be sure to obtain adequate insurance coverage. This protects your investment in the event of unforeseen circumstances like natural disasters, legal disputes, or construction accidents. 

• Implement Safety Protocols 

Accidents on the job site during construction can delay your project and cost you money. It is important to implement safety measures on your multi-family construction.

• Continuously Evaluate Your Construction Process

In order to avoid going over budget, it is key to regularly monitor the progress of your multi-family construction project to identify any issues or potential cost overruns. If you stay on top of your project’s progress, you can find a solution before problems escalate and negatively affect your bottom line.

• Learn From Past Projects 

When you partner with an experienced multi-family contractor, you have the benefit of experience. At ETI Construction, we have years of experience constructing and renovating multi-family projects and have continuously refined our approach and learned how to reduce costs.  

• Avoid Last-Minute Changes

Last-minute updates to your property’ blueprints can delay construction and raise the cost of your multi-family construction. 

What is the Cost to Build Multifamily Properties in 2024? 

The cost to build multi-family complexes in 2024 varies widely and depends on a number of factors. However, the average cost for a multi-family property in the United States in 2023 was $350 per square foot, according to Multifamily Loans’ apartment construction calculator. 

How to Keep Multi-Family Construction Costs Low

The best way to keep multi-family construction costs low is to hire the right construction partner. ETI Construction offers the best multi-family construction services in Chicagoland. We know the right places to cut costs and where to avoid cheaper options. 

Our ETI Multi-Family Construction Process

At ETI Construction, we have years of experience building luxurious multi-family homes while keeping costs low. We have a 12-step process to ensure that our multi-family construction process goes smoothly and stays on budget.

Partner with ETI Construction for Multi-Family Projects

Reducing costs for multi-family projects requires careful planning, strategic decision-making, ongoing evaluation, and most of all, the right contractor. If you wish to build a luxurious multi-family property for less in the Chicagoland area, partner with ETI Construction. We make building luxurious properties affordable. Contact us today at (773) 299-6574 or info@eticonstruction.net.