Construction Costs Price History
1970–2025 · U.S. Census Bureau / Engineering News-Record
Average cost per square foot for new residential construction in the United States from 1970 to 2025. Building a house used to be remarkably cheap — just $16 per square foot in 1970, which meant a 1,500 sq ft home ran about $24,000 in construction costs alone. Today that same square foot costs $202, and lumber price spikes, labor shortages, and supply chain chaos have made the last five years especially painful. The pandemic era saw construction costs jump 37% between 2019 and 2025, adding tens of thousands to the price of every new home.
Price in 1970
$16.00
Price in 2025
$202.00
Total Change
+1162.5%
Years Tracked
55
Construction Costs Over Time
Compare to inflation: The chart above shows nominal (not inflation-adjusted) prices. Use the toggle to switch to inflation-adjusted values when available, or try the inflation calculator to convert any amount between years.
Key Insights
- Construction costs went from $16/sq ft in 1970 to $202/sq ft in 2025 — a 12.6x increase that's been one of the biggest drivers behind rising home prices.
- Costs were remarkably stable through the early 1980s recession, barely moving from $39 to $43 between 1980 and 1982, as the housing market essentially froze.
- The 2020-2022 lumber crisis was a game-changer: costs leaped from $148 to $185/sq ft in just two years, adding roughly $55,000 to a typical 1,500 sq ft home.
- Even after the worst supply chain disruptions eased, costs haven't come back down — they've plateaued around $200/sq ft, suggesting the new price floor is here to stay.
Year-by-Year Data
| Year | Price (USD per square foot) | YoY Change |
|---|---|---|
| 1970 | $16.00 | — |
| 1971 | $17.00 | +6.3% |
| 1972 | $18.00 | +5.9% |
| 1973 | $20.00 | +11.1% |
| 1974 | $23.00 | +15.0% |
| 1975 | $25.00 | +8.7% |
| 1976 | $27.00 | +8.0% |
| 1977 | $30.00 | +11.1% |
| 1978 | $33.00 | +10.0% |
| 1979 | $36.00 | +9.1% |
| 1980 | $39.00 | +8.3% |
| 1981 | $42.00 | +7.7% |
| 1982 | $43.00 | +2.4% |
| 1983 | $44.00 | +2.3% |
| 1984 | $46.00 | +4.5% |
| 1985 | $48.00 | +4.3% |
| 1986 | $50.00 | +4.2% |
| 1987 | $53.00 | +6.0% |
| 1988 | $56.00 | +5.7% |
| 1989 | $59.00 | +5.4% |
| 1990 | $61.00 | +3.4% |
| 1991 | $62.00 | +1.6% |
| 1992 | $63.00 | +1.6% |
| 1993 | $65.00 | +3.2% |
| 1994 | $67.00 | +3.1% |
| 1995 | $69.00 | +3.0% |
| 1996 | $71.00 | +2.9% |
| 1997 | $73.00 | +2.8% |
| 1998 | $76.00 | +4.1% |
| 1999 | $79.00 | +3.9% |
| 2000 | $82.00 | +3.8% |
| 2001 | $84.00 | +2.4% |
| 2002 | $87.00 | +3.6% |
| 2003 | $90.00 | +3.4% |
| 2004 | $95.00 | +5.6% |
| 2005 | $101.00 | +6.3% |
| 2006 | $108.00 | +6.9% |
| 2007 | $112.00 | +3.7% |
| 2008 | $110.00 | -1.8% |
| 2009 | $104.00 | -5.5% |
| 2010 | $102.00 | -1.9% |
| 2011 | $103.00 | +1.0% |
| 2012 | $105.00 | +1.9% |
| 2013 | $108.00 | +2.9% |
| 2014 | $112.00 | +3.7% |
| 2015 | $117.00 | +4.5% |
| 2016 | $122.00 | +4.3% |
| 2017 | $128.00 | +4.9% |
| 2018 | $135.00 | +5.5% |
| 2019 | $140.00 | +3.7% |
| 2020 | $148.00 | +5.7% |
| 2021 | $165.00 | +11.5% |
| 2022 | $185.00 | +12.1% |
| 2023 | $192.00 | +3.8% |
| 2024 | $198.00 | +3.1% |
| 2025 | $202.00 | +2.0% |
Sources & Methodology
Per-square-foot costs derived from Census Bureau Value of Construction Put in Place data and Engineering News-Record construction cost indices. Figures represent average total construction cost (materials and labor) for new single-family residential buildings, excluding land, financing, and soft costs like permits and architectural fees.
Primary source: U.S. Census Bureau / Engineering News-Record
For a full explanation of how we collect and adjust data, see our methodology page.