Every year the National Association of Home Builders conducts a member census in order to better understand the composition and characteristics of the people who belong to its organization. In 2017, 32 percent of NAHB’s members were builders—those directly involved in home building. The remaining 68 percent were associate members—those involved in supportive industries and professions, such as trade contractors, manufacturers, retailers/distributors, designers, and architects.
Sixty-two percent of builder members are single-family builders (spec/tract, custom, or general contracting), 21 percent are residential remodelers, 6 percent are commercial builders, 5 percent each are multifamily builders and land developers, and 1 percent are commercial remodelers. Less than 0.5 percent of builder members are manufacturers of modular/panelized log homes (Exhibit 1).
NAHB’s builder members reported that they had a median of 5 employees on payroll in 2017. Thirteen percent had 1 employee, 33 percent had 2 to 4 employees, 24 percent had 5 to 9, 22 percent had 10 to 49, and 5 percent had 50 or more paid employees. Three percent had no payroll at all.
In 2017, builder members started a median of 5 housing units. The plurality of builder members – 22 percent – started 2 or 3 units.
The median dollar volume of business among builder members was $2.7 million in 2017, about 13 percent higher than in 2016 ($2.4 million). The median that builder members reported in 2017 marks the highest point in the census’ 10-year series on builder revenue.
The median age of NAHB builder members is 57 and 57 percent have either a college or an advanced degree.
For details on NAHB’s associate members, please look out for next month’s article on housingeconomics.com.