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%).
Advertisement
Related Stories
Construction
5 Steps to Cracking the Code for a High-Performance Home
As a model of energy savings, water conservation, indoor comfort and health, and use of on-site renewable energy, The New American Home 2024 offers valuable lessons
Construction
Proven Ways to Improve Jobsite Productivity
Consider these solutions for reducing cycle time, hard costs, dry runs, rework, miscommunication, and overall inefficiencies on the jobsite
Single-Family Homes
What Does It Cost to Build a Single-Family Home?
A closer look at the itemized costs in each stage of construction for a single-family home