The costs associated with constructing a house have steadily increased over the past 20 years. In 1995, the average cost to build a home was 53% of its sales price, according to the NAHB. In the association's most recent construction cost survey, that number had climbed to nearly 62%. The cost of construction per square foot is rising, too—from $80 per square foot in 2011 to $95 in 2013.
These burgeoning expenses are fueled in part by the framing industry, which has been adversely affected by the soaring cost of lumber and a shortage of skilled framing crews— noted by NAHB builders in the report as the least available type of labor needed to construct a home. The share of construction costs for framing and trusses jumped from 13.5% in 2011 to 17% in 2013.
The good news for builders is that average home prices are rising, too—by more than 25% from 2011 to 2013, according to the NAHB.