Our Houses Are Getting Bigger and More Expensive - Fine Homebuilding
previous
  • Tips & Techniques for Painting
    Tips & Techniques for Painting
  • Clever daily tip in your inbox
    Clever daily tip in your inbox
  • Video: Install a Fence
    Video: Install a Fence
  • 7 Small Bathroom Layouts
    7 Small Bathroom Layouts
  • Remodeling Articles
    Remodeling Articles
  • Energy-Smart Details
    Energy-Smart Details
  • 7 Smart Kitchen Solutions
    7 Smart Kitchen Solutions
  • 9 Concrete Countertops Ideas
    9 Concrete Countertops Ideas
  • Read FHB on Your iPad
    Read FHB on Your iPad
  • Magazine Departments
    Magazine Departments
  • Find the Pitch of a Roof
    Find the Pitch of a Roof
  • All about Roofing
    All about Roofing
  • Ultimate Deck Build 2015
    Ultimate Deck Build 2015
  • Design Inspiration
    Design Inspiration
  • 7 Trim Carpentry Secrets
    7 Trim Carpentry Secrets
  • Deck Design & Construction
    Deck Design & Construction
  • Basement Remodeling Tips
    Basement Remodeling Tips
  • Radiant Heat Comparison
    Radiant Heat Comparison
  • Video Series: Tile a Bathroom
    Video Series: Tile a Bathroom
  • Master Carpenter Videos
    Master Carpenter Videos
next

News

News


Our Houses Are Getting Bigger and More Expensive

comments (0) January 13th, 2014 in Blogs
ScottG Scott Gibson, contributing writer

Click To Enlarge Photo: chicagogeek on Flickr.com

U.S. houses are bigger and more expensive than they were just a few years ago, the National Association of Home Builders says.

According to a new report, NAHB sent its email "construction cost survey" to more than 3,000 builders last July and August. It received "usable" responses from 39 builders.

At 14,359 sq. ft., roughly one-third of an acre, the average lot size was slightly smaller than reported in surveys in 2009 and 2011. Conditioned space increased to an average of 2607 sq. ft., and the average cost, including profit, sales commission, marketing, and other expenses, was $399,532.

The proportion of the sales price that went to construction climbed slightly to 62%, up from the 59% reported in the two previous surveys. Builder profits averaged 9.3% of the sales price.

In addition to listing average costs for each phase of construction, the report also breaks down the average share of the total cost. The three most costly areas were interior finish (29.3% of total costs), framing (19.1%), and finished lot (18.6%). 

There weren't enough responses to provide a geographic breakdown of the results, NAHB says. 

The average sales price in 2013 was 25% higher than it was in 2011 but well below the peak of $454,906 reported in 2007, just before the bottom fell out of the construction market. The Census Bureau reports a similar pattern for the same time frame, although averages are lower.

Profits hit a low in 2011, with an average of 6.8% of the sales price. The average was as high as 12% in 2002.


posted in: Blogs
Back to List

Comments (0)

Log in or create a free account to post a comment.