60% of a Home’s Sales Price Goes to Construction Costs
NAHB’s latest Cost of Construction Survey
reveals that 60.8% of the average home sales price consisted of construction costs in 2022, similar to the 61.1% breakdown posted in 2019. Since the inception of this series in 1998, this is just the fourth time construction costs represent over 60% of the total price of the home — it was 61.7% in 2013 and 61.8% in 2015.
The finished lot cost was the second largest cost at 17.8% of the sales price, down from 18.5% in 2019.