Cost of constructing a home rises

building materials cost
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The National Association of Home Builders recently published its latest Cost of Construction Survey. Results show that 61.1% of the average home sale price consisted of construction costs in 2019, up from 55.6% in 2017, but similar to the 2013 and 2015 breakdowns of 61.7% and 61.8%, respectively.

At 4.9% in 2019, overhead and general expenses were essentially the same as in 2017 (5.1%). The remainder of the average home sale price consisted of sales commission (3.7%), financing costs (1.7%), and marketing costs (1.0%). These percentages are also similar to their 2017 breakdowns.

Survey respondents broke down construction costs into eight major construction stages. Interior finishes, at 25.4%, accounted for the largest share of construction costs, followed by framing (17.4­­%), major system rough-ins (14.7%), exterior finishes (14.1%), foundations (11.8%), final steps (6.8%), site work (6.2%), and other costs (3.8%).

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See the full report at NAHB’s Housing Economics.

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