Most Home Builders Are Small Businesses

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December 08, 2015

An analysis on the 2012 Economic Census data by the NAHB found that 81 percent of home builders and specialty trade contractors are independent entrepreneurs.

Under the most recent U.S. Small Business Administration size standards, the vast majority of residential construction companies qualify as a small business.

“The most recent small business size limits for all types of builders is $36.5 million, for land subdivision $27.5 million, and $15 million for specialty trade contractors,” the NAHB reports.

This means that at least 96 percent of home builders, 94 percent of land developers, and 97 percent of specialty trade contractors qualify as a small business.

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