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.

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.