Eli5: why do people say its cheaper to build up than out?

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I’ve heard contractors say this over and over again. It’s cheaper to build up when adding sqft to a home than to build an addition out? Is this true and if so why?

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Anonymous 0 Comments

Building up reuses existing structure; foundations, walls, … . Building out has nothing to reuse. There are also paperwork costs, as the land around your house might have stuff in it that needs to be relocated and that means more cost for drawings and digging and stuff. Not to mention that you might need a variance from some zoning rule (which sometimes is needed to build up, so that’s not always a deciding factor).

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