NAHB Cost of Constructing a Home 2024 — marketing = 0.8% of average new home sale price; builder profit 11.0%
Created 2026-05-24
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.