Typical Residential Construction Costs

Written by erik arvidson
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Typical residential construction costs vary by region and by the materials used. In addition, home builders tend to not reveal the true cost of building a home, including materials, labour and other costs. However, across the U.S., as of March 2010, the typical home cost between £52 and £71 per square foot for labour and materials, according to the National Association of Home Builders. The contractor's profit and overhead is added to this cost.


Typically, the cost of a newly constructed home breaks down as follows: 25 per cent for materials, 25 per cent for labour, 25 per cent for the cost of land, 12.5 per cent profit to the contractor, and 12.5 per cent overhead for the contractor. In many cases, if the builder uses a more expensive building material, he may try to not spend as much on another aspect.

Cost Surveys

According to a March 2010 report by the National Association of Home Builders, which surveyed builders, the average construction cost for a 2,700-square-foot home on a 22,000-square-foot lot size was £144,632. To come up with the sales price, builders added an average cost of £49,784 for the finished lot, £21,855 profit, and £13,245 overhead and other expenses.

Major Costs

Among the biggest factors in home construction costs, according to the NAHB survey, was framing and trusses (15.6 per cent), siding (5.8 per cent), cabinets and countertops (5.6 per cent), and plumbing (5.3 per cent).

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