Custom Home Building Experiences Dip

August 2, 2016

In 2015, custom home building decreased by three percent, from a 25 percent market share to 22 percent.

The rate is consistent with the last few years, but a drop from 2008 to 2011, when custom home building, defined as homes built for owner occupancy on owner’s land with either the owner or a builder acting as the general contractor, was around 29 percent of the market share.

According to NAHB’s Eye on Housing, custom home building breaks down starkly by region. Last year, 43 percent of homes in New England were custom built, the highest rate in the nation. Custom homes were prevalent in the East North Central (the Great Lakes region), East South Central (also known as the Mid-South), and the Middle Atlantic (Tri-State area and Pennsylvania).

Custom building was rarer on the West Coast, though, as only 14 percent of homes in the Pacific and Mountain regions were custom built.

NAHB also tracked spec home building, which increased nationally from 71 to 73 percent in 2015.

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