Builders reported an average construction cost of $428,215, about $162 per square foot, for a 2,647 square foot single-family home in 2024, according to the NAHB's Cost of Constructing a Home survey. That figure is national and leaves out the lot, financing and the builder's overhead and profit.
What the survey measures
The National Association of Home Builders surveys builders on what their homes cost. In 2024 the average sales price was $665,298. Construction was 64.4% of that price and the finished lot 13.7%, with the rest going to financing, overhead, marketing, commissions and profit.
No survey publishes a New Jersey-only construction cost. A custom home is also a different animal from the average home in the survey, most of which are built by production builders.
What raises the number for a custom home
- The lot. Clearing, grading, utilities and a septic system or sewer connection.
- Size and shape. More corners, rooflines and stories cost more than a simple box.
- Finishes. Cabinets, counters, flooring, windows and fixtures.
- Design and engineering. Architect's drawings, structural engineering and surveys.
Permits and approvals
A new home needs construction permits under N.J.A.C. 5:23-2.14 and has to meet the town's zoning. If the plan does not, a variance under N.J.S.A. 40:55D-70 comes first. Build the approval time into the schedule.
How MHG approaches new construction
MHG Contracting builds new homes as well as renovating them, from its office at 2145 Nottingham Way in Hamilton. The first step is the same free meeting and written estimate as any other project:
- A short phone call to hear what you want and set up a visit.
- A first meeting at your house to walk the space.
- A written preconstruction estimate.
- A second pass through the estimate together to settle scope and finishes.
- A deposit, then the final plan, budget and schedule before work starts.
- Week-by-week progress updates while the work is underway.
- A final walkthrough with you before the last payment.
More on new construction with MHG.
