Capital Wealth
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Mansion · Building Smaller · M6

He Planned 4,500 Square Feet in the Hamptons, Then Built Half That — Mostly Off-Site — for $975,000

His first plan was 4,500 square feet of stucco, trim and gables. Then he cut it in half, had about 80% of it built off-site on a fixed price, and moved to the dunes full time.

By Sean Anees Saifi · Capital Wealth · Published Friday, September 25, 2026 · Source: The Wall Street Journal, Friday, September 25, 2026 edition, whose market figures are the Thursday, September 24 close (Mansion)
Key Points
$975K
construction cost of the finished three-bedroom house
2,250
square feet built, half the 4,500 he first drew
$200K
what he paid for the acre, 25 years ago
$2.998M
Amagansett’s median home-sale price, per PropertyShark
A modular home section wrapped in white being lowered by crane onto a foundation among dune grass.
The walnut built-ins survived in the living room. The guest room and the laundry room weren’t so lucky.
In one line: Tesler built new in one of America’s priciest towns for under $1 million by shrinking the house before building most of it off-site, and the cheapest square foot is the one you never build.

Charles Tesler drew his house long before he was ready to build it. The 64-year-old landscape architect, whose job with New York City’s parks department kept him in the city for years, had bought an acre in Amagansett, N.Y. — where his family has had property since the 1960s — for $200,000 a quarter-century ago. He sketched a 4,500-square-foot, four-bedroom stucco traditional with gables and plenty of trim, and started on permits early because he knew they’d be slow. Then, in 2019, ready at last to make the move and wanting to cut costs, he looked at the plans again. “I realized I didn’t need that much space,” he told the Journal.

His search for alternatives led to a book. Modern Modular led him to its author, architect Joseph Tanney, who cut the plan to a 2,250-square-foot modern house and told him modular construction was the only way to pull it off. About 80% of the three-bedroom wood-frame house was built off-site and arrived by truck in seven pieces: primary suite, kitchen, dining room, living room, TV room, guest room, and a catchall holding the entry, laundry, a bathroom and an office. It was done in December 2021 for around $975,000 — roughly 25% less than building by hand on site, Tanney estimates — and that’s in a town where the median home sells for $2.998 million.

A fixed price, and a few casualties

Hiring a builder was the slow part. It took 10 months, with bids as high as $2 million; people weren’t comfortable with the modular process, Tesler says. Cruz Brothers Construction finally signed on with a fixed-cost contract, the price set up front. By then appliance and material prices were climbing, so Tesler trimmed: several windows came out, and the walnut built-ins were cut from the guest room and laundry room, though the living room kept its walnut. He bought every appliance himself, supervised on site daily, and put in the pool and landscaping on his own. He’s there full time now, amid the dunes near the beach, and says he’d change very little if he did it again.

Our read

The first cut in this story didn’t happen at a factory. It happened on paper, when 4,500 square feet became 2,250, and that decision echoes through the cost box, from $104,000 of millwork to a $6,000 fireplace. And it doesn’t stop paying: a square foot you don’t build is one you never heat, cool, insure, repair or pay property tax on. That’s a housing question (M6) people often answer backward — design the dream, then hunt for the money. Tesler shrank the house to fit the cost, then got the price fixed in writing. A fixed-price contract shifts the risk of overruns to the builder, though change orders can shift it right back.

The quiet partner was time. Because the acre was bought 25 years ago, land plus construction comes to about $1.2 million by our arithmetic, well under half the town’s median sale. You can’t borrow his timing, but anyone planning to build can borrow his sequence: decide how much house the next 20 years actually need, price it, then fix the price before the first truck shows up. If that house is on your horizon, spend fifteen minutes running the floor plan past the long-run budget before you fall for the renderings.

What It Means For Your Portfolio

Hold — size the house first, then fix the price

No portfolio action — the lesson is in the floor plan: the square footage you decide not to build costs nothing to put up, and nothing to heat, insure or repair for the next 20 years.

General planning principles, not advice for anyone in particular. Before building or buying a house you mean to stay in, price its size twice: once to build or buy, and again as the yearly cost of heating, cooling, insuring, maintaining and taxing every room. A budget that works at 2,250 square feet can quietly fail at 4,500.

On any build, get the price fixed in writing, know exactly what the contract leaves out — Tesler bought his own appliances — and keep a contingency for change orders. Decide in advance what you’d cut if prices rise; for Tesler, it was a few windows and some walnut.

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