Custom Home Building Gains in Q3 — Best Since Spring 2008

Data from the U.S. Census Bureau’s Quarterly Starts and Completions by Purpose and Design, with further analysis provided by the National Association of Home Builders (NAHB), reveals that custom home building (homes not intended for sale) in Q3 2021 matched the best quarter for construction starts since the spring of 2008.

According to the report, there were 56,000 total custom building starts during Q3 of 2021. This marks a 5.7% gain from the Q3 of 2020. Over the last four quarters, custom housing starts totaled 190,000 units — an 8% gain from the previous four-quarter total.

The report also notes that in spite of these gains, the market share for custom home building has declined as other forms of home building have expanded more rapidly. As measured on a one-year moving average, the market share of custom home building, in terms of total single-family starts, held steady at 16.6%. This is down from a cycle high of 31.5% set during the second quarter of 2009.