With the end of 2015 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In November, we examined typical single-family home construction costs.
The NAHB recently published its latest Cost of Construction Survey. The survey shows that the average home was built on 20,129 square feet (about a half an acre) of land, had 2,802 square feet of finished space, and sold for an average of $468,318.
Results further show that 61.8 percent of the average home sale price consisted of construction costs, which is similar to the 2013 breakdown (61.7 percent). The finished lot cost was the second largest cost at 18.2 percent, and also similar to 2013 (18.6 percent). Average builder profit was 9.0 percent, compared to 9.3 percent in 2013. Overhead and general expenses in 2015 were slightly higher, at 5.6 percent of the average home sale price in comparison to 4.3 percent in 2013. The remainder of the average home sale price consisted of sales commission (3.2 percent), financing costs (1.3 percent), and marketing costs (0.8 percent). These percentages are similar to their 2013 breakdowns.
Survey respondents broke down construction costs into 8 major construction stages. Interior finishes, at 29.6 percent, accounted for the largest share of construction costs, followed by framing (18.0 percent), exterior finishes (15.0 percent), major system rough-ins (13.1 percent), foundations (11.6 percent), final steps (6.8 percent), site work (5.6 percent), and other costs (0.5 percent). See Table 1 below for more details.
Please click here to be directed to the full article (which includes historical results back to 1998).