How Do Median Square-Foot Prices Differ by Region?
Median square-foot prices for new single-family detached (SFD) homes started in 2024 grew modestly, according to NAHB’s analysis of the latest Survey of Construction (SOC) data.
For custom, or contractor-built, homes, the median price was $166 per square foot of floor space, up slightly from $162 in 2023. For spec starts, after excluding record-high improved lot values, the median price was $153 per square foot of floor area, inching up from $150 a year earlier.
Regional Differences
There are notable regional variations in square-footage prices:
For-Sale Market
The New England division registered the highest and fastest-rising median square-foot prices. Half of the new for-sale SFD homes started here in 2024 were sold at prices exceeding $282 per square foot of floor area, paid on top of some of the most expensive lot values in the nation. The Pacific division came in second, with median prices of $223 per square foot.
Meanwhile, in the South region, the median sales price per square foot was below the national median of $153. The East South Central division, for example, is home to the least expensive for-sale homes at $140 or lower, paid on top of the most economical lot values in the country, followed by the South Central and South Atlantic divisions at median prices of $144 and $147, respectively.
Custom Home Market
New contractor-built SFD homes in the Northeast were more expensive to build. Half of custom SFD homes started in New England in 2024 registered prices greater than $190 per square foot of floor area. Coming in second and third are the Middle Atlantic division at $188 and the East North Central division at $186 per square foot of floor space.
On the more economical side, the East South Central and West South Central divisions are home to the most economical custom homes started in 2024, with half of the new custom homes registering prices at or below $129 and $138 per square foot of floor space, respectively.
Price Trends
The recent modest square-foot price changes marked a sharp decline from the double-digit price hikes that characterized home building in the post-pandemic environment. As recently as 2022, increases in square-foot prices of new SFD homes were approaching 20%, more than doubling the historically high U.S. inflation rate of 8%.
In the West, for example, the Mountain division registered noticeable declines in square-foot prices over the last two years, erasing a substantial portion of the post-pandemic double-digit annual hikes. Half of the custom SFD homes started here in 2024 had prices of $169 per square foot or higher. The corresponding median price in the neighboring Pacific division was $167 per square foot. In comparison, during the post-pandemic home building boom, the median price crossed the $200 mark for homes started in 2022 in the Mountain division.
The deceleration for median square-foot prices reflects slower growth in building material prices and home building wages in 2024. The shifts toward cost-effective methods, such as building homes on slabs rather than with full or partial basements, also contributed to moderating the increases in square foot prices.
Natalia Siniavskaia, AVP of Housing Policy Research, provides more details in this Eye on Housing post.