The NAHB recently published its latest Cost of Construction Survey. Results show that 61.1% of the average home sale price consisted of construction costs in 2019, up from 55.6% in 2017, but similar to the 2013 and 2015 breakdowns of 61.7% and 61.8%, respectively.
The finished lot cost was the second largest cost at 18.5% of the sales price, down from 21.5% in 2017. The average builder profit margin stood at 9.1% in 2019, compared to 10.7% in 2017 and 9.0% in 2015.
At 4.9% in 2019, overhead and general expenses were essentially the same as in 2017 (5.1%). The remainder of the average home sale price consisted of sales commission (3.7%), financing costs (1.7%), and marketing costs (1.0%). These percentages are also similar to their 2017 breakdowns.
Survey respondents broke down construction costs into 8 major construction stages. Interior finishes, at 25.4%, accounted for the largest share of construction costs, followed by framing (17.4%), major system rough-ins (14.7%), exterior finishes (14.1%), foundations (11.8%), final steps (6.8%), site work (6.2%), and other costs (3.8%).
See Table 1 below for more details.
Please click here to be directed to the full article (which includes historical results back to 1998).