Cost to Construct a Home Rose Significantly Over Last Two Years
Construction costs accounted for 64.4% of the average price of a new home in 2024 compared to 60.8% in 2022, according to NAHB’s most recent Cost of Construction Survey.
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.
Broad inflation in the global economy since 2022 — particularly in building material prices — is largely to blame for the increased construction costs.
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 average builder profit margin was 11.% in 2024, up from 10.1% in 2022.
Explore the interactive dashboard below to view the costs and percentage of construction costs for eight stages of construction and their 36 components.
For more on the survey, please see this Eye on Housing post from NAHB economists.
Latest from NAHBNow
Economics
Aug 17, 2026
Affordability Pressures Keep Builder Confidence Low
Builder confidence in the market for newly built single-family homes inched up one point to 35 in August, according to the NAHB/Wells Fargo Housing Market Index (HMI) released today.
Regulations | Environmental Issues
Aug 14, 2026
Administration Acts on 3 Key NAHB Deregulatory Priorities
Two regulations will become effective under the Endangered Species Act (ESA) on Aug. 20, and a third final rule rescinding the ESA’s 45-year-old “harm” regulatory definition becomes effective next month.
Latest Economic News
Economics
Aug 17, 2026
Consumer Credit Slowed in Q2
In the second quarter of 2026, consumer credit growth slowed over the quarter and was lower than a year ago. According to the Federal Reserve’s G.19 Consumer Credit Report, total outstanding U.S. consumer credit reached $5.17 trillion in the second quarter of 2026.
Economics
Aug 17, 2026
Affordability Pressures Keep Builder Confidence Low
Builder sentiment remains muted from economic and geopolitical uncertainty, elevated mortgage rates and rising construction costs.
Economics
Aug 14, 2026
Single-Family Permitting Declines Through June in Contrast to Multifamily
Single-family permitting activity continued to weaken through the first half of 2026, while multifamily permitting remained somewhat stronger compared with the same period last year.