Single-Family Home Builders


Buy Now For $400
View Sample Report Recent Developments

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
                          Source: Vertical IQ and Inforum

                          Recent Developments

                          Oct 14, 2024 - Top Home Tech Features Home Buyers Prefer
                          • The recent What Home Buyers Really Want Study by the National Association of Home Builders highlights some home technology features that are most attractive to prospective home buyers. Study participants were given a list of 19 technology features and were asked to rate each as essential, desirable, indifferent, or do not want. Some of the top tech features included programmable thermostats (78% of buyers ranking desirable or essential), security cameras (76%), video doorbells (74%), wireless home security system (70%), multi-zone HVAC systems (68%), lighting control system (63%), energy management system/display (61%), and wired home security system (61%).
                          • New single-family home sales fell 4.7% month-over-month but were up 9.8% year-over-year in August 2024, according to the US Department of Commerce. Some potential home buyers stayed on the sidelines ahead of an anticipated interest rate cut, according to the National Association of Home Builders (NAHB). In mid-September 2024, the Federal Reserve announced a half-percentage point rate cut. The NAHB suggests home builder sentiment is improving amid expectations that the Fed’s credit-easing cycle will continue. However, falling interest rates may increase competition between home builders and existing homeowners who’d previously felt locked in by their low interest rates.
                          • Amid moderating interest rates, single-family construction spending is forecast to rise 5% in 2024, according to FMI’s fourth-quarter 2024 North American Engineering and Construction Outlook. There is an estimated shortage of 1.5 million homes in the US, and that number is expected to climb amid high home prices, rising debt, and high costs for associated services, such as insurance. In the near term, home builders will likely remain competitive with existing homes regarding affordability. Single-family home construction spending is forecast to rise 5% in 2025, then moderate to 4% in 2026, before growing 5% in 2027 and 6% in 2028.
                          • In the second quarter of 2024, there were about 23,000 single-family built-for-rent (SFBFR) housing starts in the US, up nearly 10% from the same period in 2023, according to National Association of Home Builders analysis of US Census Bureau data. During the four most recent quarters, 83,000 SFBFR homes began construction, which is up more than 20% compared to how many were built in the previous four-quarter period. While the historical four-quarter moving average market share for SFBFR is about 2.7% (1992-2012), SFBFR’s current share of the overall single-family market is about 8%. Single-family built-for-rent homes provide an alternative for consumers who want more space but are challenged by a lack of affordable housing inventory and downpayment requirements in the for-sale market.
                          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.

                          Request A Demo