How much did it cost to build a new home in 2024?

But what exactly goes into homebuilding costs, and how do those costs translate to profits for builders — and home prices for buyers? Here’s the breakdown for the average new construction home in 2024:

Site work

Site work accounts for 7.6% of the total construction cost, or an average of $32,719. That includes building permit fees ($7,640), water and sewer inspection fees ($6,260), architecture and engineering ($6,480) and an impact fee ($6,367), with other miscellaneous site work costing about $5,972.

Foundations

Excavation, foundation, concrete, retaining walls and backfill cost over $43,000, while other foundation expenses add up to $1,747. In total, the cost to lay the foundation for a home makes up 10.5% of the total, or about $44,748.

Framing

Framing expenses include lumber, which makes up the bulk of the building cost. Framing makes up 11.6% of the total cost, or $49,763, which is the highest line item on any construction expenses breakdown. Meanwhile, trusses (which are roof framing components that are pre-made and brought to the job site) cost $12,903, or 3%.

Additionally, sheathing, or the plywood that makes up the outside shell of the home, is $6,513, while additional metal and steel needed for construction can cost $1,718.

In total, framing can be over $70,000, or 16.6% of the total building funds.

Exterior finishes

On average, exterior wall finishes — for example, siding or bricks — are $24,450, and roofing costs $16,732. Windows and doors and other exterior finishes cost $1,803.

That means exterior finishes cost $57,510 and make up 13.4% of the total.

Major systems

Plumbing, electrical and HVAC make up a big chunk of the building budget for a new home, with the most expensive being electrical at about $27,383, or 6.4% of the total cost. Plumbing can cost $27,180, or 6.3%, while windows and doors run $15,990, or 3.7%.

With those costs, plus additional assorted expenses, installation of major systems costs $82,319, or about 19.2% of the total building budget.

Interior finishes

There are many components that make up the interior of a home, but the most expensive is usually cabinets and countertops at $19,056. Other interior expenses include insulation ($6,992), drywall ($13,962), interior trims, doors and mirrors ($12,920), paint ($11,150), lighting ($5,392), appliances ($7,499), flooring ($15,388), plumbing fixtures ($7,922) and fireplaces ($2,378.)

Added up, interior finishes cost over $103,000 and make up 24.1% of the total.

Final steps

Even when a house is fully built, there’s still more work to be done outside. Landscaping can cost $9,239, while outdoor structures like a deck, patio and porch cost around $4,722. A driveway is $9,635, while general cleanup costs $3,183.

Combined, these final steps tally around $27,710 and make up 6.5% of the total expenses.

Profit

With all the above expenses added together, the average cost to construct a new home in 2024 was $428,215. But that isn’t the only expense to take into account in order to understand how new homes are priced.

Firstly, before construction can even begin, the average finished lot costs about $91,057, while financing costs $10,220. Overhead and general expenses cost $38,248, while marketing costs $5,633 and sales commissions are $18,995.

All of these expenses, plus the profit for the builder, add up to the price passed along to the consumer. In 2024, the average homebuilder had a profit margin of 11%, or $72,971, up from 10.1% in 2022. That equates to a total sales price of $665,298.