US Custom Home Building Share Declines in 2023

By Ashok Chaluvadi
The NAHB Eye on Housing
September 20, 2024
Category: Finance & Economics
Region: United States

In 2023, 18.8% of all new single-family homes started were custom homes. This share decreased from the 20.4% recorded in 2022, according to data tabulated from the Census Bureau’s Survey of Construction. The custom home market consists of contractor-built and owner-built homes—homes built one at a time for owner occupancy on the owner’s land, with either the owner or a builder acting as a general contractor. The alternatives are homes built-for-sale and homes built-for-rent. In 2023, 71.5% of the single-family homes started were built-for-sale, and 9.7% were built-for-rent. At an 18.9% share, the number of custom homes started in 2023 was 177,850, falling from 207,472 in 2022.

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