Mike Croxall: A Snapshot Of New Home Constructions Costs

Friday, May 19, 2017 - by Mike Croxall, president, Home Builders Association of Greater Chattanooga

If you’re in the market for a new home, you may be wondering about the factors that contribute to the total cost of the home. The National Association of Home Builders recently published a Cost of Construction Survey, which details the various costs of building a typical new single-family home. Many of the results show that costs have remained consistent in recent years.

According to the survey, the biggest single component of a home’s price is construction costs, which accounts for 62 percent of the cost. The cost of the finished lot is the second largest factor at 18.2 percent. 

Survey respondents broke down construction costs into eight major construction stages: 

  • Interior finishes: 30 percent
  • Framing: 18 percent
  • Exterior finishes: 15 percent
  • Major system rough-ins: 13 percent
  • Foundations: 11.6 percent
  • Final steps: 6.8 percent
  • Site work: 5.6 percent
  • Other costs: 0.5 percent

The survey reaffirms the steady progress of our economy since the Great Recession, as home values have gradually risen. And, in each year since 2009, the size of single-family homes has grown as well. The average home in 2015 had 2,802 square feet of finished space, compared to 2,402 in 2009.

The size of the lot has increased significantly, too, jumping to 20,129 square feet (nearly half an acre) in 2015, from 14,359 square feet just two years ago.

Though building practices and the cost of labor, land and materials can vary widely across the country, these national averages provide an encouraging snapshot of the building industry and our nation’s housing recovery. The upward trend of home buyer confidence and home price appreciation is inspiring more and more consumers to build the home of their dreams.

To learn more about the home building process in the Chattanooga area, visit the Home Builders Association of Greater Chattanooga at HBAGC.net visit nahb.org for more information. 

 



Bridger Says It Is Time For Policy On Building On Steep Slopes, Flood Plains

Regional Planning Agency Executive Director John Bridger told the City Council on Tuesday it is time for a policy on building on steep slopes and flood plains. He said, as developable land runs out in Hamilton County, more builders are turning to steep slopes and lowlands. Mr. Bridger asked the council to pass a resolution directing the RPA to draw up a proposed policy.  ... (click for more)

Chattanooga Design Studio Enlists Public To Help Plan Future Of South Broad Street District

Based on the culmination of a public input that engaged more than 250 local citizens, the Chattanooga Design Studio announced the completion of a report outlining future plans for the South Broad District. “Citizen input is the foundation of all great urban design so we are proud to release recommendations derived from hundreds of participating residents, business owners and ... (click for more)

Witness Says Christopher Turner Shot Jamichael Eddins Multiple Times After He Was Already Down At Carousel Road

Police said Christopher Lashawn Turner stood over 24-year-old Jamichael Eddins on Carousel Road late Tuesday afternoon and fired multiple shots into him after shooting him moments before.   Turner, 26, of 1203 Sholar Ave., was charged with criminal homicide, aggravated assault, reckless endangerment and possession of a firearm.   Randall Davenport, 28, was ... (click for more)

County Commission Approves Sizable Pay Increase For Magistrates

The County Commission has approved a sizable pay raise for its four magistrates, taking them from the current $66,000 per year to $92,000 by 2021. The raises will take effect beginning with new terms for magistrates. Two of the current magistrates are up for re-appointment in May. Their pay level will become $80,000. It will rise by $4,000 per year until reaching the $92,000. ... (click for more)

Reflections On Billy Graham

Sandra and I are saddened this morning after learning of the death of Billy Graham. We rejoice today, because Mr. Graham once said "It will be reported that Billy Graham has died, but that won't be the truth. He said the truth is that he had only moved to a new location".  I remember when we named 15th Street as Billy Graham Avenue, his daughter Gigi came for the dedication ... (click for more)

Roy Exum: One Principal’s Reaction

On the morning after the mass shooting in Florida last week, a 17-year-old at Ledyard High School in Connecticut made an offhand comment during his first period class, “I could buy an AR-15.” At that, all the teachers panicked. Really. The school was soon so rattled by the comment the principal called the cops. And those five words got the child shackled, taken into custody, and ... (click for more)