What drives the cost of a remodel or a custom home
Why we will not publish a price range, what the national cost data actually shows, and the six decisions that move your number the most.
Updated 23 August 2026 · AY Carpentry & Interiors, Salem, Oregon
Key takeaways
- We do not publish price ranges, because the number depends on scope, finishes and the condition of what is already there. We would rather price your actual project.
- Nationally, the average construction cost of a single family home in the NAHB 2024 survey was $428,215, and construction was 64.4% of the sale price.
- Finishes are the largest movable line at 24.1% of construction cost, which is why material and finish decisions change budgets more than most homeowners expect.
- Structural work, site conditions and permitting sit underneath the finish and are the hardest lines to reduce without changing the project.
It depends entirely on the scope, the finishes and the condition of what is already there. We would rather talk it through with you than publish a number that will not match your project. Contact us and we will discuss it.
What we can do is show you which decisions move the number, and roughly how much of a budget each one tends to represent.
Where the money goes
The NAHB Cost of Constructing a Home survey breaks a single family build into eight stages. The 2024 edition put the average construction cost at $428,215, the highest since the survey began in 1998, and construction at 64.4% of the average sale price, with the finished lot at 13.7%.
The decisions that move your number
| Driver | Why it moves the cost | Where it shows up |
|---|---|---|
| Scope | A kitchen is a different project from a whole house renovation, which is different again from building from the ground up | Every stage |
| Structural work | Structural modifications, room additions and second storeys change what is required underneath the finish | Framing, foundations |
| Site and existing conditions | Challenging construction conditions and the state of an existing house are discovered, not planned | Site work, framing |
| Materials and finishes | Cabinetry, countertop and tile selections have a wide range, and finishes are the largest single slice of construction cost | Interior finishes, 24.1% |
| Systems | Plumbing, electrical and HVAC rough-ins are close behind finishes and are largely non-negotiable | Rough-ins, 19.2% |
| Coordination | Trades arriving in the wrong order costs time, and time costs money | Across the schedule |
Source: Stage shares from NAHB, Cost of Constructing a Home, 2024. Drivers reflect the problems AY Carpentry and Interiors solves for homeowners.
Why quality construction costs more
Because the foundation of a successful project is the quality of the craftsmanship. We work with clients who value quality, communication, attention to detail and a well-managed construction process over simply choosing the lowest bid.
There is also a floor set by law. A licensed Oregon contractor carries a surety bond and liability insurance tied to their CCB endorsement, and a Residential General Contractor must hold a $25,000 bond and $500,000 per occurrence insurance. A bid that undercuts everyone else is sometimes a bid from someone carrying none of that.
Construction cost is not the whole price
When people compare numbers they often compare different things. The NAHB survey separates them. In the 2024 edition, construction was 64.4% of the average new home sale price and the finished lot was 13.7%. The rest of the price covers financing, overhead, marketing, sales commission and builder profit.
A remodel has no lot line in it at all, and a custom home on land you already own does not carry the lot cost the way a production home does. That is one of the reasons a price per square foot picked up from a neighbour, an article or a listing rarely survives contact with an actual scope of work.
What a percentage looks like as money
Applying the published stage shares to the published average construction cost gives a rough sense of scale for each decision. Again, this is arithmetic on national figures, not our pricing.
| Stage | Share of construction cost | Applied to the $428,215 average | How much you control |
|---|---|---|---|
| Interior finishes | 24.1% | about $103,200 | High. Cabinetry, counters, tile, flooring and fixtures all have wide ranges |
| Major system rough-ins | 19.2% | about $82,200 | Low. Code sets most of it |
| Framing | 16.6% | about $71,100 | Medium. Shape and complexity of the structure drive it |
| Exterior finishes | 13.4% | about $57,400 | Medium. Siding, roofing and window choices |
| Foundations | 10.5% | about $45,000 | Low. The site decides |
| Site work | 7.6% | about $32,500 | Low. Permits, utilities and access |
| Final steps | 6.5% | about $27,800 | Medium. Landscaping scope |
| Other | 2.1% | about $9,000 |
Source: Shares and average construction cost from NAHB, Cost of Constructing a Home, 2024. Dollar column is arithmetic on those figures. Control column reflects how much homeowner choice normally affects each stage.
Where budgets actually get away from people
In our experience the number rarely moves because of one big decision. It moves because of a series of small ones that each felt reasonable on their own.
| What happens | Why it costs | How to stay ahead of it |
|---|---|---|
| Selections made late | Trades cannot install what has not been chosen and ordered, and idle time is still time | Settle selections during design, not during framing |
| Scope added mid build | Work added after a wall is closed can mean opening it again | Decide the full scope before the permit set is finished |
| Existing conditions found on site | Older houses hide rot, undersized framing and non compliant wiring | Expect discovery on any remodel and hold a contingency |
| Structural changes late in design | Moving a bearing wall changes framing, foundations and sometimes the roof | Test layout ideas while they are still drawings |
| Comparing bids that are not the same scope | One bid excludes what another includes | Ask every bidder to price the same written scope |
Source: Drawn from the problems AY Carpentry and Interiors solves for homeowners: structural modifications, challenging construction conditions, coordinating trades and keeping clients informed.
Reading three bids that are not the same
A low bid is only low if it covers the same work. Before comparing totals, line them up against the same questions: does it include permits, does it include the demolition, does it carry allowances or real selected products, does it include the finish carpentry or stop at drywall, and who is coordinating the subcontractors. Two of those answers usually explain most of the gap.
There is also a legal floor underneath any legitimate Oregon bid. A Residential General Contractor carries a $25,000 surety bond and $500,000 per occurrence liability insurance. A bid well under everyone else is sometimes a bid from someone carrying none of that.
What you can control
Material and finish decisions are the lever most homeowners have, and helping you through them is part of our kitchen and bathroom work. Structure, permitting and the systems behind the wall are the lines that stay where they are.
The honest way to get a number is a conversation about your project. Schedule a consultation and we will talk it through.
Frequently asked
How much does a remodel or a custom home cost?
It depends entirely on the scope, the finishes and the condition of what is already there. We would rather talk it through with you than publish a number that will not match your project. Contact us and we will discuss it.
Why does quality construction cost more?
Because the foundation of a successful project is the quality of the craftsmanship. We work with clients who value quality, communication, attention to detail and a well-managed construction process over simply choosing the lowest bid.
What was the average cost of building a home in the 2024 national survey?
The NAHB Cost of Constructing a Home survey put average construction cost at $428,215 in 2024, with construction representing 64.4% of the average sale price and the finished lot 13.7%.
Can you help with material and finish decisions?
Yes. Design and project management services are included in our kitchen, bathroom and remodeling work, and material and finish decisions are something we help homeowners through.
How much of a new home sale price is construction cost?
In the NAHB 2024 survey, construction was 64.4% of the average new single family home sale price, and the finished lot was 13.7%. The remainder covers financing, overhead, marketing, sales commission and profit.
Why can you not give me a price per square foot?
Price per square foot averages together decisions that are not average: scope, structural work, site conditions and finish level. Interior finishes alone are 24.1% of construction cost in the NAHB 2024 survey, and that share moves with the products chosen.
What is the most common reason a remodel budget grows?
Late selections, scope added after work has started, and existing conditions found once a wall is open. The first two are avoidable by settling scope and selections during design.
How do I compare bids fairly?
Ask every bidder to price the same written scope, and check whether permits, demolition, allowances and finish carpentry are included in each one before comparing the totals.
Sources
- NAHB, Cost of Constructing a Home, 2024 survey. eyeonhousing.org
- Oregon Construction Contractors Board, CCB Licence Endorsements chart, revision 11/2024. www.oregon.gov
Contact us to discuss your upcoming project.
Custom home, whole-home remodel, major addition, or a high-end kitchen or bathroom renovation. Call, email or send us a message and we will schedule a consultation.