While the 2013 Cost vs. Value Report — available this month, at costvsvalue.com — gives insight into the return on investment of home remodeling projects, what sort of bang for the buck do buyers of new homes get?
We can’t report the value, but a recent study from the National Association of Home Builders (NAHB) provides a sense of the cost.
NAHB’s detailed survey of close to 50 dealers nationwide culminated in a report figuring construction costs for a 2,311-square-foot home with a sales price of $310,619. Of that total, $184,125 (59.3%) went into construction costs. Another $67,551 (21.7%) went to buy the lot, and the rest was for financing, overhead, marketing, sales commission, and profit.
Here’s how much was spent on this model house for buying and installing major building items and what share of the total construction budget they occupied. —Craig Webb, editor-in-chief, REMODELING.