NAHB: Custom home market share fades
The custom home share declined to 20% of all single-family homes started in 2017, the lowest since mid-2000, according to the National Association of Home Builders (NAHB) and data from the Census Bureau’s Survey of Construction (SOC).
The custom home market is defined as contractor-built or owner-built homes constructed one at a time for owner occupancy on the owner’s land with either the owner or builder acting as the general contractor. The alternative is spec homes built on builder’s land with the intention of selling the house and land in one transaction.
Although the share of custom homes declined from 21% in 2016 to 20% percent in 2017, the number of custom homes built increased from 161,900 units in 2016 to 171,900 in 2017.
The NAHB reports that the highest custom home share was in the New England and East North Central Divisions where 40% of new homes started were custom built. In the South Atlantic and Mountain Divisions the share was only 14%.
In the Mid-Atlantic Division, 33% of new homes started were contractor-built or owner-built houses, followed by the East South Central Division at 31% and the Pacific Division at 16%. In the West North Central and West South Central Divisions, 22% and 18% of new homes started where custom homes.
For the past 10 years, the share of custom homes built reached their height at 30% of the market in 2009.
The custom home market is defined as contractor-built or owner-built homes constructed one at a time for owner occupancy on the owner’s land with either the owner or builder acting as the general contractor. The alternative is spec homes built on builder’s land with the intention of selling the house and land in one transaction.
Although the share of custom homes declined from 21% in 2016 to 20% percent in 2017, the number of custom homes built increased from 161,900 units in 2016 to 171,900 in 2017.
The NAHB reports that the highest custom home share was in the New England and East North Central Divisions where 40% of new homes started were custom built. In the South Atlantic and Mountain Divisions the share was only 14%.
In the Mid-Atlantic Division, 33% of new homes started were contractor-built or owner-built houses, followed by the East South Central Division at 31% and the Pacific Division at 16%. In the West North Central and West South Central Divisions, 22% and 18% of new homes started where custom homes.
For the past 10 years, the share of custom homes built reached their height at 30% of the market in 2009.