National Association of Home Builders’ Post

Good Read: 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 share of finished lot to the total sales price has fallen consecutively in the last three surveys, reaching a series low in 2024. The average builder profit margin was 11.0% in 2024, up less than a percentage point from 10.1% in 2022.

No surprise here. Interior finishes dominate the cost trends. You get what you pay for with a new home, but the investment still makes sense. Biggest takeaway: 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%).

78% of the cost of a typical new house is sticks, bricks, land, and hard labor. Homebuilders are not making wild profits, despite the high sticker prices.

Construction costs are skyrocketing, impacting home prices significantly. Talk to your agent to understand how these trends affect your market and navigate the current landscape....

If you’re into data driven construction costs, even single family home costing can be revealing when represented in a schedule of values

All in the numbers. “The average builder profit margin was 11.0% in 2024, up less than a percentage point from 10.1% in 2022” Read to see where the largest cost comes from.

Cost of Constructing a Home in 2024 The latest finding marks a record high for construction costs since the inception of the series in 1998 and the fifth instance where construction costs represented over 60% of the total sales price. https://lnkd.in/gRc8j2Uq

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 and the fifth instance where construction costs represented over 60% of the total sales price.

Helpful insight into the construction of a new home and the cost. https://lnkd.in/giyGgQn2