Custom Homebuilding Sees Market Gains
A National Association of Home Builders (NAHB) analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey has indicated gains for custom homebuilders following a period slight softening of market share. The custom home market is less sensitive to the interest rate cycle than other forms of homebuilding.
According to Eye On Housing, There were 47,000 total custom building starts during the fourth quarter of 2024. This marks a 7% increase compared to the fourth quarter of 2023. Over the last four quarters (2024 as a whole), custom housing starts totaled 181,000 homes, just below a 2% increase compared to the prior four quarter total (178,000 in 2023).
Currently, the market share of custom home building, based on a one-year moving average, is approximately 18% of total single-family starts. This is down from a prior cycle peak of 31.5% set during the second quarter of 2009 and the 21% local peak rate at the beginning of 2023, after which spec home building gained market share.
