Breaking Down Construction Costs:

What It Really Costs to Add a 3rd Story & Fully Renovate—

The response to our deal analysis for 1414 S 19th St was overwhelming, so we’re taking it one step further with a full breakdown of construction costs. For those curious about what goes into transforming a dilapidated old 2-story duplex into a luxury 3-story single-family home in Philadelphia, this post is for you!

Project Overview

Let’s start with the basics:

  • Property Type: 2-story duplex converted into a 3-story single-family home

  • Final Size: Just over 3,000 finished square feet

  • Features: 1.5-car garage, oversized exterior deck, luxury finishes

  • Timeline: 6 months

This was an in-house development project, so while we certainly prioritized high-quality finishes, we were very budget conscious.

The Final Construction Costs

Here’s the number you’ve been waiting for: $345,491.08.

This total reflects hard construction costs only—no developer fees to ourselves. At 3,200 square feet, the cost came out to approximately $108/sqft.

While every project varies, this breakdown provides a solid reference for a similar third-story addition on a corner row home in Philadelphia.

Key Cost Factors

Several factors helped/hurt the cost per square foot . . .

  • HELPED: The larger size of the house reduced the average $/sqft.

  • HURT: Being a corner property added costs for both structural and regulatory reasons.

I’m not going to input our full 256 line spreadsheet detailing every cost, BUT I will point out some that I thought you may find interesting!

Line-by-Line Breakdown

Here are some highlights from our cost breakdown that may surprise you:

  1. Demo & Routine Clean Out: $10,350

    • Initial demo: $5,600

    • Routine clean-outs: $4,750 (often underestimated!)

  2. Foundation & Exterior Masonry: $36,500

    • New footings and basement slab: $15,500

    • Exterior masonry (steps, concrete flatwork, dryvit façade): $21,000

  3. Framing (Materials & Labor): $44,872.05

    • Labor: $15,400

    • Materials: $29,472.05

  4. Roofing & Siding: $33,328

    • TPO roof and Trex decking: $10,350

    • Composite slate-look shingles and siding: $22,978 (corner properties = more surface area)

  5. Mechanical, Electrical, Plumbing (MEPs): $51,750.05

    • Plumbing: $17,600.05

    • HVAC (dual-zone system): $17,650

    • Electrical (including custom lighting features): $16,500

  6. Cabinets & Counters: $23,229.05

    • Cabinets: $15,804.05

    • Counters: $7,425

  7. Tile & Hardwoods: $21,549.92

    • Tile materials/labor: $10,998.64

    • Hardwood materials/labor: $10,551.28

What This Means for Future Projects

Every renovation has its own challenges, but the process stays pretty consistent. A project of this size takes careful budgeting, planning, and execution to get it right.

From breaking ground to final clean-up, we wrapped this one up in just six months—thanks to the streamlined systems we’ve developed at Axe Builders.

Thinking About a Similar Build?

If you're considering a project like this in Philadelphia, let’s talk! Contact us today to get started.

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Building A Custom Home: The Financial Benefits

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