Visualized: The Cost of Building a Home in the U.S.

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Building a new home is a major undertaking that involves many moving parts—from laying the initial foundation to giving the house its final touches.

In 2024, the average construction cost of a new home, which represents over 60% of an average home’s total sales price, hit a record high in the United States.

This infographic breaks down the average cost of building a new single-family home in the U.S. in 2024, by stages of construction. The data is based on a survey of 4,000 U.S. home builders by the National Association of Home Builders (NAHB).

Home Construction Breakdown: What Costs Most?

The average cost of constructing a new home was $428,215 in 2024, the highest level recorded by NAHB since it began its annual cost surveys in 1998. This equates to around $162 per square foot of finished floor space, with the average home spanning 2,647 square feet in 2024.

Here’s the full breakdown of the cost of building a new home, across different stages of the building process:

The two initial stages—site work and foundations—together make up around 18% of the total construction costs. Framing and exterior finishes make up another 30%, costing around $71,000 and $58,000 per home, respectively.

Furthermore, rough-ins for plumbing, HVAC, and electrical systems account for nearly one-fifth of the total cost at over $82,000 per home. Rough-ins refer to the initial stages of installing these essential services, before fixtures and finishing touches.

Interior finishes—one of the final stages of construction—account for the largest share of costs at 24.1% (roughly $103,000). This reflects the wide range of fixtures and features that go into making a home livable, from flooring and lighting to appliances and cabinetry.

The finishing steps of home construction include landscaping, building outdoor structures, driveways, and post-construction clean-up.

The U.S. Housing Construction Market in 2025

The outlook for residential construction in 2025 looks constrained due to various factors.

According to NAHB, builder confidence remains relatively low due to higher material costs, with recent tariffs by the Trump administration threatening further cost increases.

Meanwhile, home construction starts have been relatively stable since 2021, but the number of new homes available for sale is at the highest level since 2010, suggesting a lack of demand for new housing amid high borrowing costs.

As affordability concerns persist, builders are employing price reductions and sales incentives (such as mortgage buydowns) to lure new buyers.

Learn More on the Voronoi App

How do construction costs affect the overall price of a new home? Check out Breaking Down the Price of a New Home on the Voronoi app to learn more.