While $117/sq.ft. is the average cost nationwide, the average in Los Angeles City – where Cover operates – is a lot higher. In addition to that, Cover offers backyard homes, which means they're smaller than a full size home. They're typically between 300-900sq.ft. A lot of the costs of a home are the mechanical systems, kitchens, bathrooms – which you still need in a small space. So the smaller you go, the higher the cost/sq.ft. When you look at the numbers – you can build a 900sq.ft. Cover backyard home in Los Angeles for $300K. It's hard to even find a good apartment at that price in LA. Full disclosure - I'm the cofounder & CEO of Cover.