How Much Does It REALLY Cost to Build a House?

How Much Does It REALLY Cost to Build a House?

The National Association of Home Builders (NAHB) just released its 2024 Cost of Construction Survey, showing that construction expenses made up 64.4% of the average newly built single-family home's sales price — an increase from 60.8% in 2022. The average construction cost reached $428,215, or $162 per square foot, while builder profit accounted for 11% of the total price. Based on responses from 41 builders, the study details cost allocations across site work, foundations, framing, major systems, interior finishes, and final steps.

• Average sales price of new construction was $665,298

• Framing costs (including the roof) accounted for 11.6%

• Excavation costs (including foundation and concrete) accounted for 10%

Ralph’s Take

During and after college, I worked for a local home builder in Pound Ridge (check out Nordic Construction), which is why this topic is so fascinating to me. Breaking down the costs of new construction is crucial for anyone looking to build — smart budgeting, cost control, and thorough planning are the backbone of a successful project. Finding land in Westchester County that is ready for development has become increasingly difficult, with prices fluctuating based on factors like topography, and the hurdles of securing Zoning, Planning, and Board of Health approvals. Interested in land? Find it Here