Why Do Custom Contemporary/Modern Homes Often Command A Premium Price Per SQ/FT?

First, there is a difference between modern and contemporary architecture. While there are often design elements found in one style and another, for the purpose of this article, I’m going to mash the two together as is often done by others.

Supply and Demand:

As always, one of the most significant factors in market value comes down to supply and demand. Every area is different, but here in Tampa, Florida, we simply do not have many high-end contemporary homes on the market. Supply is low, and demand continues to grow for these unique properties. When demand is higher than supply, prices will usually be higher.

Craftsmanship and quality:

As with every builder and architect, craftsmanship and quality will differ, but contemporary homes should generally use cutting-edge processes, styles, and materials above and beyond the generally accepted standards. This rise in quality takes more time, thought, energy, and talent and simply costs more money. Oftentimes, this can be difficult for buyers to comprehend as the build quality can be challenging to spot by the naked eye. While a room can look simple in nature due to the lack of traditional finishes, the reality is that it becomes extremely difficult to conceal imperfections in flooring, ceilings, doors, stairs…etc., so everything must be done to perfection without “cutting corners.” Buyers who can appreciate the architectural detail are willing to pay more.

Design elements:

Contemporary architecture is, literally, what is being created and produced right now. It is dynamic, meaning it’s constantly changing, and can be quite unique for this reason. Contemporary style isn’t tied down to one specific style, it’s of the moment and borrows pieces from a variety of styles and eras. A traditional custom home has each space and finishes tailored to the customers’ needs and wants. A custom contemporary home will go an extra step and have not only the space customized but also often every sight line, material, and finish blended together to create an artistic experience. This is when a home becomes more than a home and becomes a livable piece of art, and as history has shown, art that is rare and can invoke an emotional attachment, people will pay more money to obtain it!