Cost of Constructing a Home reaches record high in 2024

By Eric Lynch
The NAHB Eye on Housing
January 23, 2025
Category: Finance & Economics
Region: United States

Construction costs account for 64.4% of the average price of a home, according to NAHB’s most recent Cost of Construction Survey. In 2022, the share was 3.6 points lower, at 60.8%. The latest finding marks a record high for construction costs since the inception of the series in 1998. The finished lot was the second largest cost at 13.7% of the sales price, down more than four percentage points from 17.8% in 2022. …The average builder profit margin was 11.0% in 2024, up less than a percentage point from 10.1% in 2022. …Construction costs were broken down into eight major stages of construction. Interior finishes, at 24.1%, accounted for the largest share of construction costs, followed by major system rough-ins (19.2%), framing (16.6%), exterior finishes (13.4%), foundations (10.5%), site work (7.6%), final steps (6.5%), and other costs (2.1%). Explore the interactive dashboard below to view the costs and percentage of construction costs for the eight stages and their 36 components.

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