Construction Costs Survey for 2019

The latest Cost of Construction Survey, which was conducted by the National Association of Home Builders (NAHB) and recently published, shows that 61.1% of the average home sales price consisted of construction costs in 2019. That is up form 55.6% in 2017, but almost the same as 2013, at 61.7% and 2015, which was at 61.8%. Coming in as the second greatest cost was finished lot costs which were at 18.5%, but that is down from 21.5% which was recorded in 2017. Builder profit margin in 2019 were also smaller, recorded at 9.1%, compared to 10.7% in 2017, but slightly above the 9.0% of 2015.