Mike Croxall: A Snapshot Of New Home Constructions Costs

Friday, May 19, 2017 - by Mike Croxall, president, Home Builders Association of Greater Chattanooga

If you’re in the market for a new home, you may be wondering about the factors that contribute to the total cost of the home. The National Association of Home Builders recently published a Cost of Construction Survey, which details the various costs of building a typical new single-family home. Many of the results show that costs have remained consistent in recent years.

According to the survey, the biggest single component of a home’s price is construction costs, which accounts for 62 percent of the cost. The cost of the finished lot is the second largest factor at 18.2 percent. 

Survey respondents broke down construction costs into eight major construction stages: 

  • Interior finishes: 30 percent
  • Framing: 18 percent
  • Exterior finishes: 15 percent
  • Major system rough-ins: 13 percent
  • Foundations: 11.6 percent
  • Final steps: 6.8 percent
  • Site work: 5.6 percent
  • Other costs: 0.5 percent

The survey reaffirms the steady progress of our economy since the Great Recession, as home values have gradually risen. And, in each year since 2009, the size of single-family homes has grown as well. The average home in 2015 had 2,802 square feet of finished space, compared to 2,402 in 2009.

The size of the lot has increased significantly, too, jumping to 20,129 square feet (nearly half an acre) in 2015, from 14,359 square feet just two years ago.

Though building practices and the cost of labor, land and materials can vary widely across the country, these national averages provide an encouraging snapshot of the building industry and our nation’s housing recovery. The upward trend of home buyer confidence and home price appreciation is inspiring more and more consumers to build the home of their dreams.

To learn more about the home building process in the Chattanooga area, visit the Home Builders Association of Greater Chattanooga at HBAGC.net visit nahb.org for more information. 

 


RE/MAX Mountain Properties Raises Over $26,000 For Children’s Hospital At Erlanger

Decision On Controversial Single-Family Home Project Near Pineville Road Delayed Until Dec. 11

Planning Commission Recommends Approval For Multi-Family On North Chattanooga Hillside


RE/MAX Mountain Properties in Murphy, N.C. has raised over $26,000 for Children’s Hospital at Erlanger this year through the Miracle Home and Miracle Property programs. RE/MAX Mountain ... (click for more)

A controversial project involving the construction of 61 single-family homes on Stringer's Ridge above Pineville Road has been delayed. A number of nearby residents protested the project ... (click for more)

The Planning Commission on Monday recommended approval for six multi-family homes on a North Chattanooga hillside, replacing three existing Craftsman style homes. Glen Craig of Craig Design, ... (click for more)


Real Estate

RE/MAX Mountain Properties Raises Over $26,000 For Children’s Hospital At Erlanger

RE/MAX Mountain Properties in Murphy, N.C. has raised over $26,000 for Children’s Hospital at Erlanger this year through the Miracle Home and Miracle Property programs. RE/MAX Mountain Properties Associates make a donation to Children’s Miracle Network Hospitals (CMN) after each residential and commercial transaction. These agents have donated $25 from each transaction to ... (click for more)

Decision On Controversial Single-Family Home Project Near Pineville Road Delayed Until Dec. 11

A controversial project involving the construction of 61 single-family homes on Stringer's Ridge above Pineville Road has been delayed. A number of nearby residents protested the project by William Wilson of Beason View Land Company at a meeting of the City Council. Donna Shepherd, representing the developer, asked for a 30-day deferral to hold a community meeting and ... (click for more)

Breaking News

Truck Driver Charged In Death Of Another Truck Driver In Head-On Crash Near Trenton

A tractor-trailer driver from Pennsylvania was charged on Friday in the death of another truck driver. The Dade County Sheriff's Office said Gustavo Rodriguez-Pagan was driving on Interstate 59 near Trenton when a head-on crash occurred. His vehicle crossed the median and struck another tractor-trailer. Authorities said they found Rodriguez-Pagan walking around the accident ... (click for more)

Girl Injured In 5-Vehicle Crash On I-24 Near Wildwood Exit

A young girl was critically injured in a five-car crash on I-24 in Dade County on Saturday. The accident was near Exit 169 at Wildwood. Authorities said a roll-back tow truck that was hauling two vehicles struck a van with a family inside. The van then struck three other vehicles. The wreck happened just before noon. The girl was found unresponsive in the van. (click for more)

Opinion

HES Can't Be Matched, Replicated Or Cheaply Duplicated

As a volunteer at the Humane Educational Society for four years, I have first-hand knowledge of the work this organization does and the conditions it has to overcome to do it. The 118-year-old facility in which the administration, staff and volunteers work every day is at the end of its road. A new shelter space is more than warranted. The good news is that there are county funds ... (click for more)

Roy Exum: A Thanksgiving Opener

Ever so often my dear friend Dale Brown, the former LSU basketball coach, will include me as he shares his wonderful thoughts, occasional devotions, and glittering ideas how we should be our best every day. Dale is an expert at motivation yet he’s got a friend whose insight I’ve grown to adore. When Dale was at LSU, he signed a stunning basketball player named Johnny O’Bryant III ... (click for more)