NAHB Cost of Constructing a Home 2024 — marketing = 0.8% of average new home sale price; builder profit 11.0%

Claim: NAHB's 2024 Cost of Constructing a Home survey reports the following decomposition of the average new-home sale price:

  • Construction costs: 64.4%
  • Average builder profit margin: 11.0%
  • Overhead and general expenses: 5.7% (up from 5.1% in 2022)
  • Sales commission: 2.8%
  • Financing costs: 1.5%
  • Marketing costs: 0.8%

Source: NAHB, Cost of Constructing a Home, 2024 edition.

Confidence: Verified.

For Candid: The 0.8% figure is the baseline a builder reads in industry materials. Any marketing pitch that proposes Gartner-equivalent levels (~7.7% — see [[gartner-cmo-spend-2024-2025-7-7pct]]) is proposing a ~10× shift from the industry norm and will be read accordingly. The honest pitch positions Candid spend as a fraction of revenue commensurate with the [[buildern-2026-1-8-to-3-2pct-residential-builder-spend]] benchmark, not the cross-industry CMO average.