What it costs to build a house: NAHB's 2024 survey
The construction cost of the average new single-family home was $428,215, or about $162 per square foot of finished area, in the National Association of Home Builders' Cost of Constructing a Home survey for 2024, published in January 2025.[1] NAHB calls this the highest figure in the history of the series, and cautions that it is a national average from a builder survey, not a figure for estimating a particular house in a particular place. A 2026 edition was not yet published when this page was written.
Construction is only part of what a new home sells for. In the same survey, construction was about two-thirds of the average sales price of $665,298:
| Component | Average | Share of price |
|---|---|---|
| Construction cost | $428,215 | 64.4% |
| Finished lot | $91,057 | 13.7% |
| Builder profit | $72,971 | 11% |
| Overhead and general expenses | $38,248 | 5.7% |
| Sales commission | $18,955 | 2.8% |
| Financing | $10,220 | 1.5% |
| Marketing | $5,633 | 0.8% |
Building on land you already own avoids the lot line, and building without a builder's sales operation avoids commission and marketing, but the construction line stays. That is what this calculator estimates.
Where the construction money goes
Interior finishes and the major systems (plumbing, electrical and HVAC) are the two largest stages, together more than 43% of construction cost in NAHB's breakdown. The calculator applies these shares to your total so you can see the size of each stage:
| Stage | Share | Amount |
|---|---|---|
| Site work (permits, fees, design) | 7.6% | $32,544 |
| Foundations | 10.5% | $44,963 |
| Framing | 16.6% | $71,084 |
| Exterior finishes | 13.4% | $57,381 |
| Plumbing, electrical and HVAC rough-ins | 19.2% | $82,217 |
| Interior finishes | 24.1% | $103,200 |
| Final steps (driveway, landscaping, clean-up) | 6.5% | $27,834 |
| Other | 2.1% | $8,993 |
Inside those stages, NAHB's survey put roofing at $16,732, windows and doors at $15,990, cabinets and countertops at $19,056 and the driveway at $9,635 for the average home.[1] If you are pricing a single project on an existing house instead, the remodeling surveys are a better guide; see the kitchen remodel cost calculator or the roof replacement cost calculator.
Worked example
A 2,000 sq ft house at NAHB's national average of $162 per sq ft:
- Construction: 2,000 × $162 = $324,000.
- Stage split: framing 16.6% = $53,784; interior finishes 24.1% = $78,084; systems rough-ins 19.2% = $62,208.
- Add the lot and any site costs your builder lists separately, then the interest on the construction loan.
Replace $162 with the cost per square foot in your builder's bid; local prices, finishes and the shape of the house move it a long way from the national figure. For the default inputs (2,647 sq ft at $162), construction comes to $428,814, within rounding of NAHB's $428,215.
Interest during construction
A construction loan is drawn in stages, so you pay interest on a balance that grows from zero to the full loan; on average about half of it is outstanding. The calculator uses that half-balance approximation. Interest per $100,000 financed:
| Loan rate | 6 months | 9 months | 12 months |
|---|---|---|---|
| 6% | $1,500 | $2,250 | $3,000 |
| 7% | $1,750 | $2,625 | $3,500 |
| 8% | $2,000 | $3,000 | $4,000 |
| 9% | $2,250 | $3,375 | $4,500 |
Use the rate and schedule from your own loan offer. When the house is finished, the construction loan is usually replaced by a regular mortgage; the mortgage payment calculator shows that payment, and for 2026 the baseline conforming loan limit for a one-unit home is $832,750.[3]
Mortgage interest while you buildFor tax purposes, the IRS lets you treat a home under construction as a qualified home for up to 24 months, provided it becomes your qualified home when it is ready to live in.[2] Ask a tax professional how this applies to your loan.
Building vs. buying or rebuilding
The same cost-per-square-foot math is how insurers think about rebuilding a home after a loss, which is a separate question from what the home would sell for; the home replacement cost calculator compares a rebuild estimate with your dwelling coverage. For additions rather than whole houses, the Census Bureau's home improvement survey shows that room additions and renovations vary widely; a kitchen addition had a median cost of $25,000.[4]
Frequently asked questions
How much does it cost to build a house per square foot?
About $162 per square foot of finished area for construction alone, the national average in NAHB's 2024 survey.[1] The lot, financing and the builder's overhead and profit are on top, and local costs differ widely.
How much does it cost to build a 2,000 sq ft house?
At NAHB's national average of $162 per sq ft, construction is about $324,000 before the lot and financing. Your builder's price per square foot is what counts.
What is the biggest cost in building a house?
In NAHB's breakdown, interior finishes (24.1%) and the plumbing, electrical and HVAC rough-ins (19.2%) are the largest stages of construction cost, followed by framing (16.6%).[1]
Is it cheaper to build or buy a house?
It depends on land and local prices. Building avoids paying for a builder's sales costs but adds the lot, design, permits and construction-loan interest. Run both: this calculator for the build, and the mortgage calculators for the purchase.