The 7 Costs of a Single-Family Home’s Construction

by Peter Thomas Ricci

We’ve looked at how newly built homes are priced and how those prices have changed in recent years; now, we look at costs.


The last couple weeks, we’ve looked at both how a single-family home is priced and how its price (and the components that go into that price) have changed throughout the years – and now finally, we’re looking at the actual costs to building that single-family home, courtesy of some great data from the NAHB.

Home construction is something that many of us take for granted, but as our graph below demonstrates, there are quite a few components that builders must keep track of.

Read More Related to This Post


  • Linda Sanzeri says:

    One of the largest components is the cost of the lot. When I first started building custom homes I could purchase a very nice piece of property with city sewer and water for approximately $15,000. Of course location was factored into this as it would be now. The prices slowly escalated as the years went by. The last custom home I built was in St. Charles, in 2007. I paid $150,000 for a house I had to tear down before I could even begin to build and had to put an additional $30,000 into it to replace the sewer and water lines. That’s $180,000 just in dirt! Even with the economy as it stands today, that same lot that you could purchase back in the day for $15,000 would now run anywhere in the neighborhood of $80,000 and up in price. Besides the actual costs as you’ve outlined above, this is the single most expensive component of the equation for builders.

  • Peter Ricci says:


    great point on the cost of lots; we hear this often from homebuilders, and not just here in Chicago, but in other metro areas as well. Thank you for your perspective!

Join the conversation

New Subscribe

  • This field is for validation purposes and should be left unchanged.