Construction, Land Top Costs of Housing

Summary


Although home prices have decreased in some areas, the cost of a new home can still give buyers sticker shock. Have you ever wondered what it actually costs to construct a home and how much builders profit from each sale?

Every few years, the National Association of Home Builders (NAHB) conducts a survey of its members to learn what it costs to build a common single-family detached home.

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Construction, Land Top Costs of Housing

The survey is based on 50 single-family detached homes constructed in 35 metropolitan markets, with an average of 3,340 square feet and a sales price of just under $455,000. Because the surveyed homes are in metropolitan areas, they are a larger and more upscale than the average American home, which is typically about 2,500 square feet.

Although the NAHB survey is not comprehensive,...

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