Single-Family Home Construction Time Increases Again

It took an average of 8.1 months to finish constructing a single-family home in 2019, from authorization to start until completion. In 2014, it took an average of 7.0 months to complete construction and 7.7 months in 2018, according to NAHB. Homes built for sale were the fastest at 7.0 months, while custom builds took 13.5 months in 2019. The time varies depending on geographic location as well, with the Middle Atlantic region averaging 12.3 months for completing a single-family home on the high end and the South Atlantic averaging 6.9 months until completion on the low end.

Single-family homes built by contractors on owners’ land began construction within the same month after obtaining building authorizations. Custom homes built for sale and built by owners serving as general contractors had one month or a little over one-month lag between obtaining permits and the start of construction. However, single-family homes built for rent took the longest time, almost two months, from authorization to completion in 2019.

The average time from authorization to completion also varies across divisions. The division with the longest duration was the Middle Atlantic (12.3 months), followed by New England (11.9 months), the Pacific (9.8 months), the East South Central (9.0 months), the East North Central (8.7 months) , and West North Central (8.2 months) in 2019. These six divisions had average time from permit to completion exceeding the nation’s average (8.0 months). The shortest period, 6.9 months, is registered in the South Atlantic division. The average waiting period from permit to construction start varies from the shortest time of 20 days in the Mountain and the East South Central division to the longest one of 43 days in Pacific.

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