The NAHB recently published its latest Cost of Construction Survey. Results show that 60.8% of the average home sale price consisted of construction costs, essentially unchanged from the 61.1% posted in 2019. Since the inception of this series in 1998, this was the fourth time construction costs represent over 60% of the total price of the home (2013: 61.7%, 2015: 61.8%, and 2019: 61.1%).
The finished lot category was the second largest cost at 17.8% of the sales price, down from 18.5% in 2019. The average builder profit margin was 10.1% in 2022, compared to 9.1% in 2019.
At 5.1% in 2022, overhead and general expenses were also essentially unchanged when compared to 2019 (4.9%). The remainder of the average home sale price consisted of sales commission (3.6%), financing costs (1.9%), and marketing costs (0.7%). These percentages are also similar to their 2019 breakdowns.
Survey respondents broke down construction costs into 8 major construction stages. Interior finishes, at 24.0%, accounted for the largest share of construction costs, followed by framing (20.5%), major system rough-ins (17.9%), exterior finishes (11.8%), foundations (11.0%), site work (7.4%), final steps (5.9%), and other costs (1.5%).
Explore the interactive dashboard below to view the costs and percentage of construction costs for the 8 components and their 36 subcomponents.
Table 1 shows the same results as the dashboard above in table format. Please click here to be redirected to the full report (which includes historical results back to 1998).
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This is a two story home which not many people buy any longer in this price range.
So much depends on location, land cost and more.
I don’t agree with these figures in Colorado.
When it comes to the cost of constructing a home, accurate surveys are essential. Surveying contractors help homeowners and builders determine the precise dimensions and boundaries of the land, which can significantly affect construction costs. It’s all about starting with a solid foundation, and that’s where surveyors shine.
So if this is for a house size of 2,561sf and my house will be 1,600sf, can I just multiply the square foot price of $153.16 and be fairly accurate?