Construction Times for Home Building Accelerated in 2020

According to the 2020 Survey of Construction (SOC) from the Census Bureau, the average construction times for building a new home declined by around 10 days compared to the average in 2019.

The average construction time for new homes in 2020 was around 7.8 months, which usually includes slightly over a month from authorization to start with the rest of the time being allotted to actual construction. However, according to an article by Na Zhao for the National Association of Home Builders’ Eye on Housing blog, “the time from authorization to completion varies across the nation an depends on the geographic location, and whether the house is built for sale or custom-built.”

This decline paused the upward trend that started in 2014. According to the same article by Zhao, houses built for sale took the shortest amount of time compared to custom build, or built by owners, homes. Homes for sale took about 6.9 months from permits being obtained to construction being completed, while custom builds took about 13 months.

However, the NAHB predicts that the upward trend will be reignited in 2021 thanks to challenges in home building including material supply shortages and price increases.

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