The National Association of Home Builders’ most recent Cost of Construction Survey reveals that 60.8% of the average home sales price in 2022 consisted of construction costs, the fourth time construction costs have represented over 60% of the total price of the home since 1998, NAHB reports. Interior finishes accounted for the largest share of construction costs at 24%, followed by framing (20.5%) and major system rough-ins (17.9%).
The latest cost breakdown means that a home with a $450,000 sale price would likely factor in construction costs of around $270,000.
Survey respondents broke down construction costs into eight major construction stages. Interior finishes, at 24.0%, accounted for the largest share of construction costs, followed by framing (20.5%), major system rough-ins (17.9%), exterior finishes (11.8%), foundations (11.0%), site work (7.4%), final steps (5.9%), and other costs (1.5%).
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