Cost to build a house in the US statistics & facts

Cost to build a house in the US at a glance

Building a new home in the United States has never been more expensive. According to the latest Cost of Constructing a Home survey by the National Association of Home Builders (NAHB), the average new single-family home sold for 665,298 dollars, of which 428,215 dollars, or 64.4 percent, went on construction costs. That is the highest share since NAHB began the survey in 1998. The finished lot accounted for 91,057 dollars, or 13.7 percent, and builder profit for 72,971 dollars, or 11.0 percent. For the wider market, see our overview of residential construction in the United States.

The NAHB survey covers homes built by its members, which tend to be larger than average: the typical home in the survey had 2,647 square feet of finished area on a lot of 20,907 square feet. Construction costs therefore worked out at about 162 dollars per square foot, up from 153 dollars in the previous survey for 2022. Since then, costs have kept rising: prices of inputs to residential construction were 7.8 percent higher in August 2026 than a year earlier, according to NAHB analysis of Bureau of Labor Statistics data.

Where the money goes

Construction is by far the largest cost in a new home, but not the only one. In the NAHB survey, the finished lot made up 13.7 percent of the average sales price, the lowest share on record, partly because builders have shifted to smaller lots. Builder profit accounted for 11.0 percent, general overhead for 5.7 percent, sales commissions for 2.8 percent, financing costs for 1.5 percent and marketing for 0.8 percent.

Two-thirds construction: construction costs made up 64.4 percent of the average new home price, the lot 13.7 percent and builder profit 11.0 percent.

Compared with the previous survey for 2022, construction costs rose from 392,241 dollars, or 60.8 percent of the price, to 428,215 dollars, or 64.4 percent. The lot share fell from 17.8 percent to 13.7 percent, while the profit share rose slightly from 10.1 to 11.0 percent and overhead from 5.1 to 5.7 percent. The average sales price increased from 644,750 dollars to 665,298 dollars, about 3 percent, less than the roughly 9 percent rise in construction costs.

Construction up, land down: the construction share rose from 60.8 to 64.4 percent of the price between the 2022 and 2024 surveys, while the lot share fell from 17.8 to 13.7 percent.

Cost to build a house by stage

Within construction costs, the most expensive stage is the interior. Interior finishes, including cabinets, countertops, flooring, appliances and painting, averaged 103,391 dollars, or 24.1 percent of construction costs. Major system rough-ins, meaning plumbing, electrical and heating and air conditioning, cost 82,319 dollars, or 19.2 percent. Framing, including the roof, came to 70,982 dollars, 16.6 percent, followed by exterior finishes at 57,510 dollars and foundations at 44,748 dollars.

Interiors cost most: interior finishes averaged 103,391 dollars per home, almost a quarter of all construction costs.

The shares have shifted since 2022. Framing fell from 20.5 percent to 16.6 percent of construction costs as lumber prices came down from their pandemic highs, while major systems rose from 17.9 to 19.2 percent and exterior finishes from 11.8 to 13.4 percent. Interior finishes stayed roughly unchanged at about 24 percent. Site work, final steps such as landscaping and driveways, and other costs together accounted for the remaining 16.2 percent.

Framing cheaper, systems dearer: framing fell from 20.5 to 16.6 percent of construction costs between 2022 and 2024, while major systems rose to 19.2 percent.

The most expensive single items

Looking at individual items rather than stages, framing including the roof is the largest single cost at 49,763 dollars, or 11.6 percent of construction costs. Excavation and foundation work, including concrete, retaining walls and backfill, cost 43,002 dollars, or 10.0 percent. The three main building systems each cost about 27,000 dollars: electrical work 27,383 dollars, plumbing 27,180 dollars and heating, ventilation and air conditioning 26,938 dollars.

Framing and foundations first: framing including the roof cost 49,763 dollars and excavation and foundation work 43,002 dollars per home.

Rising material prices in 2026

Material prices are rising again after a calmer 2023 and 2024. According to NAHB analysis of producer price index data from the Bureau of Labor Statistics, prices of inputs to residential construction rose 7.8 percent in the year to August 2026 and 1.1 percent in August alone. Building materials excluding energy rose 5.1 percent, services 7.8 percent and energy inputs 46.2 percent. Softwood lumber prices were up 13.0 percent and plywood 12.5 percent. General inflation is covered in our data on the US inflation rate.

Energy and lumber surge: energy inputs rose 46.2 percent and softwood lumber 13.0 percent in the year to August 2026.

Over a longer period, the increase is even larger. The Joint Center for Housing Studies (JCHS) at Harvard University estimates that residential construction input prices were about 40 percent higher in 2025 than at the start of 2020, with steel mill products up 84 percent and gypsum products up 47 percent. Lot values rose 52 percent between 2020 and 2024. NAHB puts the increase in building material costs since December 2020 at about 40 percent.

The impact of tariffs

Tariffs have added a new layer of costs since 2025. According to NAHB, builders used about 194 billion dollars of goods in new homes in 2025, of which about 14 billion dollars, or 7 percent, were imported. Duties on Canadian softwood lumber were raised from 14.5 percent to 35 percent, with an additional 10 percent tariff under Section 232, steel and aluminum face tariffs of 50 percent and kitchen cabinets and vanities 25 percent. In an April 2025 survey, builders estimated that tariffs added an average of 10,900 dollars to the cost of a typical home, and suppliers had raised prices by an average of 6.3 percent because of tariffs. More on trade policy is in our data on US tariffs.

What buyers pay

The NAHB survey reflects the larger homes built by its members. Across all new homes sold in the United States, the median sales price was 417,400 dollars in 2025 and the average 523,800 dollars, according to the Census Bureau. In August 2026, the median price of new homes sold fell to 393,700 dollars, 5.8 percent less than a year earlier, as builders cut prices and offered incentives. For buyers who build on their own land, the median contract price of a custom single-family home started in 2025 was 404,000 dollars, not including the land.

Builders have tried to offset higher costs by building smaller homes on smaller lots. The median single-family home completed in 2025 had 2,142 square feet, and median lot sizes have levelled off at around 8,500 square feet, according to NAHB analysis of Census data. These trends are covered in our report on single-family vs multifamily construction, while the pressure on builder margins is covered in our reports on US homebuilders and home builder challenges.

Outlook for construction costs

Construction costs are unlikely to fall soon. Tariffs on lumber, steel and other materials, higher energy prices and a shortage of skilled workers all point to further increases in 2026 and 2027. Wages in construction rose 4.2 percent in the year to August 2026, according to the Bureau of Labor Statistics. Builders can absorb some of the increase by building smaller homes, standardizing designs and using their purchasing power, but much of it is likely to be passed on to buyers. High costs also limit how quickly new construction can close the US housing shortage, and they push more owners toward improving existing homes, as covered in our report on home remodeling spending.

Construction costs in numbers

Frequently Asked Questions