Single-Family Home Builders
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 58,000 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.
Industry size & Structure
The average single-family home construction services provider operates out of a single location, employs 6-7 workers, and generates between $1 million and $2 million annually.
- The single-family home construction services industry consists of about 58,000 firms that employ over 381,000 workers and generate almost $70 billion annually.
- The industry is highly fragmented; the top 50 companies account for just over 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.
Industry Forecast
Single-Family Home Builders Industry Growth
Recent Developments
Feb 12, 2025 - Builders Rank Top Headwinds for 2025
- Except for inflation, which some builders expect to improve this year, the challenges most builders foresee for 2025 are much the same as the ones they faced in 2024, according to a recent survey by the National Association of Home Builders (NAHB). More than three-quarters (78%) of builders said high interest rates will likely be the key problem they face in 2025, down from 91% in 2024. Other significant issues builders expect to face this year include buyers pausing purchases as they wait for interest rates and prices to drop (74% of respondents), cost and availability of developed lots (65%), building materials prices (64%), and cost and availability of labor (64%).
- In a report released in February, JPMorgan Chase said the US housing market in 2025 would remain “largely frozen,” according to Newsweek. The report also noted that housing demand was weak amid high interest rates and home prices and that there were enough homes available, but they lacked affordability, were not the ideal type, and were not in desirable locations. The report also noted that tighter immigration enforcement could have “complex implications” for housing because 30% of construction workers are immigrants, despite President Trump’s claim that reducing immigration could bring down demand and make homes more affordable. In separate reports, real estate brokerage Redfin and the National Association of Home Builders have warned that Trump’s proposed tariffs on imports from Canada and Mexico could increase building costs and further reduce affordability.
- US private residential construction spending increased 1.5% in December 2024 from November and was up 6% year-over-year. Private residential spending growth in December was led by a 1% rise in new single-family construction spending compared to the previous month, but single-family spending was down 0.8% compared to December 2023. New private multifamily construction spending declined by 0.3% in December 2024 compared to November and was off by 10.5% year-over-year. December’s rise in private residential construction spending marked the third consecutive month of growth.
- In the third quarter of 2024, the volume of outstanding residential acquisition, development, and construction (AD&C) loans made by FDIC-insured institutions declined for the third quarter in a row, according to the National Association of Home Builders (NAHB). The value of residential AD&C loans in Q3 2024 was $490.7 billion compared to $495.8 billion in Q2 2024. The volume of residential AD&C loans is expected to rise in 2025 as the Federal Reserve continues its monetary easing policies, but potential headwinds include the federal deficit and economic uncertainty.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.