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
Oct 09, 2026
AI's Impact on Residential Construction Is Smaller Than You Might Think
The use of AI is likely to continue changing the way construction work is completed. But at least in its current form, AI does not yet have as big an impact on frontline construction work as it does in other occupations.
Economics | Advocacy
Oct 09, 2026
Podcast: 7.5% Mortgage Rates ‘New Normal’ Until Geopolitical Issues Resolved
On the latest episode of NAHB podcast Housing Developments, NAHB Chief Economist Dr. Robert Dietz joins CEO Jim Tobin and COO Paul Lopez to discuss the latest economic forecasts and how they have changed this year due to geopolitical turmoil.
Latest Economic News
Economics
Oct 09, 2026
Private Water and Sewer Systems in 2025 New Single-Family Homes
The share of new single-family homes built with individual wells and septic systems increased in 2025 compared to the previous year. According to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC), approximately 10% of single-family homes started in 2025 were served by individual (private) wells, and 17% relied on individual septic systems.
Economics
Oct 08, 2026
Remodeling Market Sentiment Remains Stable in Third Quarter Despite Headwinds
In the third quarter of 2026, the NAHB Remodeling Market Index (RMI) posted a reading of 62, up one point compared to the previous quarter. The RMI has remained within a narrow band between 59 and 70 for the past four years.
Economics
Oct 07, 2026
ARM Share Increased as Mortgage Rates Spiked
Mortgage application activity declined as the 30-year fixed mortgage rate rose sharply. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, decreased 7.7% month-over-month in September on a seasonally adjusted basis. Compared to a year ago, total mortgage applications were lower by 35.4%.