Wednesday, October 3, 2012

NAHB publishes survey on the cost of constructing a single family home

Every home builders gets the question.  So does their HBA.  "How much per square foot does is cost to build a house?"  The answer is in a report by NAHB: $80 per square foot plus the cost of the land, and other non-construction expenses.

According to NAHB's report, the average price of a new single-family home in 2011 was $310,619, down from $377,624 in 2009.  The cost of construction accounted for 60 percent of the final sales price, and the cost of the finished lot accounted for 22 percent of the final sale price.  The average size of a new single-family home in 2011 was 2,311, down from 2,716 in 2009.

Think home builders are making a lot of money building homes?  The average profit per house was 6.8 percent of the final sales price in 2011.

Read the entire report at Eye One Housing by clicking here.

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