The National Association of Home Builders (NAHB) recently released their 2015 Construction Cost Survey conducted in August of 2015). NAHB’s 2015 construction cost survey was conducted by emailing a questionnaire to a representative sample of 4,090 home builders. The sample was stratified by size of the builder (based on number of starts) and region of the country (the sample being proportional to housing starts in each of the four principal Census regions).
The construction cost survey shows that, on average, 61.8 percent of the sales price goes to construction costs and 18.2 percent to the finished lot costs. On average Builder profit (including owners’ salary and return on capital) accounts for 9.0 percent of the sales prices.
Nationally, the average new home size was 2,802 square feet and the average sales price was $468,318. The average price per square foot was $167.14.
The NAHB Construction Cost Survey provides some additional insights into the cost of construction. The average lot was 20,129 square feet or .46 acres and cost $85,139. The average Total Construction Cost, excluding Lot Cost, Financing Cost, Sales Commissions, Marketing Cost, Builder Overhead and General Expenses, and Profit, was $289,415 or $103.29 per square foot.
How does Ada County compare with these national numbers. The Intermountain MLS Data for New Construction in Ada County reports that as of 11/04/2015, there have been a total of 1,656 new homes sold this year. The average new home size was 2,325 square feet and the average sale price was $323,059. The price per square foot ranged from $111.80 to $236.67 with the average price per square foot was $138.95.