Custom Home Building Starts Reported Flat in Q1 2021

The most recent U.S. Census data of Starts and Completions by Purpose and Design, with analysis provided by the National Association of Home Builders (NAHB), reveals that the market for custom home building continues to experience flat conditions amidst strong demand and rising material challenges. In Q1 of 2021, there were 36,000 total custom building starts. While this marks a 22% gain from Q1 of 2020, that comparison is impacted by the March 2020 pandemic decline. Over the last four quarters, custom housing starts totaled 180,000, unchanged from the prior four-quarter total. Considering that there were overall home building gains in 2020, the comparatively unchanged level of custom volume indicates that the market share for custom home building has actually deteriorated. As measured on a one-year moving average, the market share of custom home building, in terms of total single-family starts, declined to below 18%. This is down from a cycle high of 31.5% set during Q2 of 2009.


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Original Source:
Custom Home Building: 1Q21 Data