Single-Family Home Builders

The 59,300 single-family home construction service providers in the US oversee the entire construction of new single-family detached houses, townhouses, and row houses. The industry includes general contractors and design-build firms. Firms do not own the land they are building upon.

Variable Material and Labor Costs

The cost of construction materials and labor can vary significantly and affect profitability for new home builders.

Dependence on Subcontractors

New home construction is highly dependent on subcontractors, with most firms directly employing a limited number of workers to oversee subcontracting activity.

Sep 20, 2026 - Canadian Plywood Faces 50% US Tariff

• A new 50% US tariff covers numerous Canadian products, including 36 types of plywood, The New York Times reports. US home builders have said domestic production is insufficient to replace Canadian plywood, raising the prospect of higher construction costs as the duties take effect. Builders already managing elevated material and financing costs may face additional pressure on project budgets, particularly where plywood and related wood products account for a meaningful share of framing and sheathing expenses. Higher input costs can make it harder to preserve margins or maintain home prices aimed at affordability-sensitive buyers.
• Home builders are facing growing litigation over mold that homeowners attribute to construction defects, according to The Wall Street Journal. Homeowners have alleged problems, including improperly sized HVAC systems, incorrectly installed windows, and poor attic ventilation, while builders and defense attorneys dispute some health claims, testing methods, and responsibility for moisture problems. Modern energy-efficiency requirements can also leave tightly sealed homes less able to dry when installation errors occur. Mold disputes can increase warranty, insurance, legal, and remediation costs for residential contractors and reinforce the importance of moisture management, ventilation, window installation, and quality-control practices throughout construction.
• The national median price of a new single-family home was $410,700 in the second quarter, $25,000 below the existing-home median of $435,700, according to the National Association of Home Builders. NAHB says regional and compositional differences help explain the unusual relationship, while builders have responded to affordability pressures with smaller lots, smaller homes, and buyer incentives. The new-home median declined 1.3% from a year earlier. Continued efforts to reach price-sensitive buyers can encourage residential contractors and builders to emphasize smaller footprints, cost-efficient designs, and tighter control of construction expenses.
• US single-family construction spending is expected to decline 4% in 2026 to about $409 billion, according to FMI's third-quarter 2026 North American Engineering and Construction Outlook. Mortgage rates climbed back above 6.5% by late June, while new home sales remained below year-ago levels and housing supply stayed elevated. Builders are using incentives and smaller homes to support sales, compressing the dollar value of construction spending. High construction costs, labor constraints, tariffs, and affordability pressures also remain challenges. FMI projects spending to decline another 2% in 2027, followed by annual gains of 3% in 2028, 5% in 2029, and 6% in 2030.

Industry size & Structure

The average single-family home construction services provider operates out of a single location, employs 6 workers, and generates about $2.4 million annually.

• The single-family home construction services industry consists of about 59,300 firms that employ over 381,400 workers and generate almost $139.9 billion annually.
• The industry is highly fragmented; the top 50 companies account for less than 15% of industry revenue. Most firms serve a limited geographical area.
• About half of firms generate less than $1 million annually and 40.9% generate less than $500,000 annually.