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.