A new NAHB study shows costs per square foot for single-family construction rose at more than twice the inflation rate last year.
The Consumer Price Index rose 8% in 2022 but the median square foot price to build a new single-family detached home jumped 18%, more than double that rate. This is according to a new study from the National Association of Home Builders.
Cost increases were highest in the U.S. Pacific and New England regions, the analysis showed. In the former, half of all such new homes started during 2022 sold at $214 per square foot or more, while the figure was even higher for the latter, at $219. These come on top of what the research shows were the most expensive lot values as well.
Potential home buyers in other parts of the country had it a little better, even if they were still paying more than the inflationary rate. The East South Central area of the country had the least expensive for-sale homes, at or below $132 per square foot. They also had the least expensive property prices.
As divided by the NAHB, the other two divisions in the southern portion of the country also had rates below the $155-national-average rates, at about $152 per square foot in the West South Central and $150 in the South Atlantic. Both rates exclude the initial costs to buy the property.
The NAHB, in releasing its figures, did note there were regional differences in building codes and construction types, such as the fact that many homes in the south do not include basements.
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