Tag Archive for ‘profit margin’

Cost of Constructing a Home in 2022

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:… Read More ›

Builders’ Profit Margins Continue to (Slowly) Increase

Typically, one of the best-kept secrets in a private company is the share of total revenue that stays in the company after paying all operating costs and expenses. For a number of personal, business, or strategic reasons, that number – also known as net profit margin – tends to remain the purview of owner(s) and accountants.  Despite these company-specific realities,… Read More ›

What’s the Average Profit Margin of Single-family Builders?

Industry benchmarks on profit margins, asset levels, and equity positions are important because they allow businesses to compare their performance to their peers, and that can be extremely helpful in identifying areas for improvement and increasing efficiencies. This is the reason why NAHB periodically conducts a survey asking single-family builders nationwide to (confidentially) provide us their income statements and balance… Read More ›

A Look Inside Builders’ Books

If you have ever wondered how much single-family builders are earning these days or how much profit is considered “average” in the industry, then a recently published NAHB study based on a national survey of single-family builders titled “The Cost of Doing Business Study: 2012 Edition” will help provide answers. On average, single-family builders in fiscal year 2010 made $7.1… Read More ›