Solid Gain for Custom Home Building in 2021

NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building expanded by 10.8% in 2021 amid strong demand for move-up purchases given a rise in existing home equity.

There were 49,000 total custom building starts during the final quarter of 2021. This marks a 11.4% gain from the fourth quarter of 2020. Over the last four quarters, custom housing starts totaled 195,000 units, a 10.8% gain from 2020 (176,000).

The acceleration of custom home building has increased its market share after a period of decline. As measured on a one-year moving average, the market share of custom home building, in terms of total single-family starts, increased to 17.3%. This is down from a recent high of 31.5% set during the second quarter of 2009.

Note that this definition of custom home building does not include homes intended for sale, so the analysis in this post uses a narrow definition of the sector. Custom homes are homes built on an owner’s lot with the builder providing a service of construction rather than a sale of real estate. The majority of custom construction is undertaken by private, community home builders.

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4 thoughts on “Solid Gain for Custom Home Building in 2021

  1. Wow, this increase in custom home building market share only proves that larger markets are getting more and more interested in custom homes construction. So aside from getting the perfect home builder, it’s important to have the right financial partner by your side that can make all the difference. Check out to find out why.

  2. It’s interesting to know that the custom home market is getting gains steadily throughout the years. I’m interested in looking for a good custom home building service soon because I’m thinking about finding a good way to develop my real estate investments. It would be nice to also think about having my dream home finally designed.

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