Custom home building fades

Improved inventory of high-end single-family homes expected to keep custom building flat.

BY HBSDealer Staff

The National Association of Home Builders (NAHB) said that its analysis of Census Data from Quarterly Stars and Completions by Purpose and Design survey indicates custom home building edged downward over recent quarters.

While there were 49,000 total custom starts for the second quarter of 2019, this was down slightly compared to the second quarter of 2018 (50,000).

Over the last four quarters, custom housing starts totaled 169,000. This was a 1.7% decline compared to the prior four quarters (172,000). The NAHB said that the definition of custom home building does not include homes intended for sale, so the analysis uses a narrow definition of the sector.

As measured on a one-year moving average, the market share of custom home building in terms of total single-family starts is now 20%, down from a cycle high of 31.5% set during the second quarter of 2009.

The NAHB predicts that the custom building market is likely to remain relatively flat given improved availability of inventory at the higher end of the housing market.


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