The NAHB recently published its latest Cost of Construction Survey. Results show that 61.1% of the average home sale price consisted of Construction Costs in 2019, up from 55.6% in 2017, but similar to the 2013 and 2015 breakdowns of 61.7% and 61.8%, respectively.
The Finished Lot Cost was the second largest cost at 18.5% of the sales price, down from 21.5% in 2017. The average builder Profit margin stood at 9.1% in 2019, compared to 10.7% in 2017 and 9.0% in 2015.
At 4.9% in 2019, overhead and general expenses were essentially the same as in 2017 (5.1%). The remainder of the average home sale price consisted of sales commission (3.7%), financing costs (1.7%), and marketing costs (1.0%). These percentages are also similar to their 2017 breakdowns.
Survey respondents broke down construction costs into 8 major construction stages. Interior Finishes, at 25.4%, accounted for the largest share of construction costs, followed by Framing (17.4%), Major System Rough-ins (14.7%), Exterior Finishes (14.1%), Foundations (11.8%), Final Steps (6.8%), Site Work (6.2%) and Other costs (3.8%).