According to the latest data from the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design survey, with further analysis provided by the National Association of Home Builders (NAHB), custom home building posted a year-over-year gain for Q1 of 2022. The survey reports that there were 46,000 total custom building starts in Q1 of 2022. This is a year-over-year increase of 28% (Q1 of 2021).
Over the last four quarters, custom housing starts total 205,000 units—a 13.9% gain from the previous four-quarter total.
The market share for custom built homes is increasing, after some market share declines due to a rise in spec building post-COVID. As measured on a one-year moving average, the market share of custom home building, in terms of total single-family starts, increased to 18%. This is nonetheless down from a cycle high of 31.5% set during the second quarter of 2009.
The NAHB notes that the definition of custom home building does not include homes intended for sale, so the analysis in this post uses a narrow definition of the sector. It represents home construction undertaken on a contract basis for which the builder does not hold tax basis in the structure during construction.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Gains for Custom Home Building