NAHB survey shows construction costs reach record 64.4% of average home price in 2024; interior finishes account for 24.1% of total building costs

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 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.

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%).

Explore the interactive dashboard below to view the costs and percentage of construction costs for the eight stages and their 36 components.

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).