Updated Cost of Constructing a New Home

The latest National Association of Home Builders (NAHB) Cost of Construction Survey, shows that 61% of the average new home sale prices consists of construction costs. This is up 55.6% in 2017, but similar to the results of 2013 (61.7%) and 2015 (61.8%). The second largest cost, according to the survey, is the cost of a finished lot at 18.5% of the sale price. However, that is down from 21.5% in 2017. The average builder profit margin was 9.1% in 2019, compared to 10.7% in 2017 and 9.0% in 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.