Breakdown on the cost of building a house
The National Association of Home Builders conducts a survey about home building costs and I believe the data would be of interest to you. How much of a house’s cost comes from the land cost? How about windows, electric, etc.?
The average size of home in this survey was 2311 square feet and the average selling price per square foot was $134.40 (Selling price $310,628) The latest year I could find the numbers from NAHB was 2011. It is notable that the average size new home built in 2011 was 400 square feet less in 2011 than it was in 2009. I suspect that it is even less today.
Today the percentages remain the same – that is: the cost of land versus the total cost of the home (around 20%) and the total cost of construction of the sales price is about 60%.
You may be interested in the margins that builders make: below 7%. Keep in mind that there was perhaps margins in the land sale as well.
Please keep in mind that these are national averages and there was not enough data according to the NAHB to regionalize the results.
This table was originally published November 1, 2011 By Heather Taylor, Economics & Housing Policy and you can view the entire article by clicking the link.