A breakdown of new construction costs
The median price of a new home is $56‚900 more than that of an existing home.1 Share this insightful data with customers who are navigating the “new vs. existing” debate:
- According to the National Association of Home Builders‚ 66% of builders said the price of building materials is a “significant problem.” Sixty-one percent of the cost of a new home is from construction costs—up from 55.6% in 2017.
- The cost of a finished lot accounts for 18.5% of a new home’s price.
- In a breakdown of construction costs‚ the most expensive elements are interior finishes (25.4%)‚ framing (17.4%)‚ major system rough-ins (14.7%)‚ and exterior finishes (14.1%).
I hope information like this is useful to you and your customers. Please contact me if you need assistance.
1Carmel Ford‚ “Cost of constructing a home‚” HousingEconomics.com‚ last updated February 3‚ 2020.