Single-Family Home Builders NAICS 236115

        Single-Family Home Builders

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Purchase Report

Industry Summary

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.


Recent Developments

Sep 9, 2025 - Single-Family Lot Shortage Persists
  • While the availability of lots for building single-family homes has improved since the pandemic, lot shortages remain a challenge for builders, according to the National Association of Home Builders (NAHB). In a recent NAHB survey of builders, 64% reported coping with some level of shortage, with 38% saying lot supplies were “low” and 26% saying they were “very low.” The share of builders reporting shortages peaked in 2021 at 76%, about a year into the pandemic. However, the percentage of builders experiencing lot shortages has remained above 60% since 2015. In addition to the scarcity of available lots, builders continue to face other stubborn headwinds, including high materials costs, tight credit availability, and attracting enough skilled labor.
  • Construction firms that work on civil infrastructure projects are holding steady as they manage uncertainties, including waning backlog growth and weaker margins, according to FMI’s third-quarter Civil Infrastructure Construction Index (CICI) survey. The CICI reading for the third quarter was 50.8 compared to 52.2 in Q2 2025 – on a 100-point scale. Any CICI reading above 50 indicates that more civil infrastructure contractors see conditions as good than poor. While about 52% of firms surveyed said their work backlogs had risen in Q3 2025 compared to a year earlier, only 25% expected backlog growth in Q4. While civil infrastructure firms expect backlogs to ease, margins remain under pressure from competitive bidding and higher costs. FMI expects firms to focus on project selection and cost controls to improve margins, as higher work volumes are a less reliable profitability boost.
  • Nearly a third of US construction firms have been impacted by intensified immigration enforcement in the last six months, according to a recent report by the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research (NCCER). More stringent enforcement has slowed project delivery and left 88% of firms with craft worker vacancies. One-fifth of construction firms surveyed reported that subcontractors had lost workers, 10% reported increases in absenteeism due to actual or rumored enforcement actions, and 5% said jobsites had been visited by immigration agents. Only 10% of firms use visa programs like H-2B due to approval challenges, leaving many vulnerable to enforcement actions. Industry leaders are urging Congress to increase funding for career and technical education and to create a construction-specific visa program to stabilize the workforce and support long-term growth.
  • New single-family home sales fell 0.6% month-over-month and were down 8.2% year-over-year in July 2025, according to the US Census Bureau. July’s total new home sales reached 652,000 units. However, home sales beat analysts’ outlook; economists polled by Reuters had expected July sales to reach only 630,000 units. The Chairman of the Federal Reserve has hinted at a possible rate cut during the central bank’s meeting in September. However, Fed rate policy will likely depend heavily on August employment and inflation data due in September. High mortgage rates continue to outpace wage growth, keeping home purchases out of reach for many would-be buyers. Some industry watchers expect new home sales to remain under pressure from interest rates through the end of the year.

Industry Revenue

Single-Family Home Builders


Industry Structure

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.

                          Industry Forecast

                          Industry Forecast
                          Single-Family Home Builders Industry Growth
                          Source: Vertical IQ and Inforum

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