Cost of Constructing a Home in 2024
- NAHB
- Mar 18
- 1 min read
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.
The average builder profit margin was 11.0% in 2024, up less than a percentage point from 10.1% in 2022.
At 5.7% in 2024, overhead and general expenses rose when compared to 2022 (5.1%). The remainder of the average home sale price consisted of sales commission (2.8%), financing costs (1.5%), and marketing costs (0.8%). Marketing costs were essentially unchanged while sales commission and financing costs decreased compared to their 2022 breakdowns.
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%).
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