Despite a mixed bag of economic signals last year, the single-family housing market proved resilient, as U.S. starts grew 5.6% in 2023 and builders navigated high mortgage rates, labor shortages, and shifting material costs to keep the industry driving forward.
Key Takeaways
- In 2023, U.S. single-family housing starts totaled 954,000 units, a 5.6% increase from 2022, driven by lower interest rates in late year
- Total U.S. housing starts for 2023 were 1.41 million units, down 2.2% from 2022 amid high mortgage rates
- Building permits for new single-family homes in December 2023 stood at 927,000 units annualized, up 3.0% from November
- U.S. construction industry employment reached 8.01 million in March 2024, up 16,000 from February
- Construction sector added 217,000 jobs in 2023, averaging 18,000 per month
- Average hourly earnings for construction workers in 2023: $35.07, up 4.5% YoY
- U.S. construction spending totaled $2.1 trillion in 2023, up 7% from 2022
- Residential construction spending 2023: $899 billion, 11% of GDP
- Nonresidential spending 2023: $520 billion private, $680 billion public
- Lumber prices average 2023: $450 per thousand board feet, down 20% YoY
- Ready-mix concrete cost increase 2023: 6.2% YoY to $160 per cubic yard
- Construction labor cost index 2023: up 4.5% to average $35/hour
- U.S. homebuilder confidence index forecasted 2024 average at 52, up from 44 in 2023
- 72% of builders reported supply chain delays in 2023 NAHB survey
- Net-zero energy homes built 2023: 5% of new single-family starts
Despite a weak multifamily sector, single-family construction grew in 2023 due to strong completions and permits.
Cost and Pricing
1Lumber prices average 2023: $450 per thousand board feet, down 20% YoY
Verified2Ready-mix concrete cost increase 2023: 6.2% YoY to $160 per cubic yard
Verified3Construction labor cost index 2023: up 4.5% to average $35/hour
Verified4Softwood lumber import tariffs impact: added $1,800 per home in 2023 costs
Directional5Steel prices for construction 2023 average: $950 per ton, up 2%
Single source6Diesel fuel cost for builders 2023: $3.80/gallon average
Verified7Architectural services cost rise 2023: 5.1%
Verified8Plumbing products PPI 2023: up 3.8%
Verified9Average cost to build single-family home 2023: $428,000, up 5%
Directional10Gypsum products price index 2023: +4.2%
Single source11Electrical wiring PPI 2023: up 6.5%
Verified12Asphalt price increase 2023: 12% to $500/ton
Verified13Builder material cost share of home price 2023: 58%
Verified14HVAC equipment costs 2023: up 7.1%
Directional15Framing lumber cost per home 2023: $38,000 average
Single source16Finished lumber PPI 2023: -10% due to oversupply
Verified17Concrete products price rise Q4 2023: 2.1% QoQ
Verified18Roofing asphalt shingles cost 2023: $120/square, up 8%
Verified19Insulation materials PPI 2023: +5.3%
Directional20Site preparation labor costs 2023: $25,000 per home average
Single source21Windows/doors cost share 2023: 6% of total home cost
Verified22Excavation costs 2023: up 6% to $12,000 average
Verified23Plumbing fixtures PPI 2023: +4.0%
Verified24Foundation concrete cost 2023: $28,000 per home
Directional25Electrical systems cost 2023: $22,000 average per home, up 7%
Single source26Labor cost share of new home 2023: 27%
VerifiedCost and Pricing Interpretation
While lumber finally stopped acting like a tech stock, everything else from the ground up—concrete, labor, wiring, and even the diesel to haul it—continued its relentless climb, proving that building a house is a masterclass in getting squeezed from all sides.
Economic Indicators
1U.S. construction spending totaled $2.1 trillion in 2023, up 7% from 2022
Verified2Residential construction spending 2023: $899 billion, 11% of GDP
Verified3Nonresidential spending 2023: $520 billion private, $680 billion public
Verified4Construction GDP contribution 2023: 4.2% of total U.S. GDP at $1.1 trillion
Directional5Builder profitability average 2023: 8.5% net margin per NAHB survey
Single source6New home sales revenue 2023: $250 billion
Verified7Construction inflation rate 2023: 5.8% for inputs
Verified8Single-family home average sales price 2023: $417,700, up 3%
Verified9Multifamily construction spending Q4 2023: $120 billion annualized
Directional10Public construction spending growth 2023: 12% to $400 billion
Single source11Builder backlog value 2023 average: $1.2 million per firm
Verified12Construction industry output 2023: $1.9 trillion real terms
Verified13Highway construction spending 2023: $150 billion, up 10%
Verified14Average builder revenue per home 2023: $450,000
Directional15Total construction investment 2023 as % GDP: 13.5%
Single source16Private nonresidential spending 2023: $520 billion, flat YoY
Verified17Manufacturing facilities spending 2023: $100 billion peak
Verified18Construction value added 2023: $850 billion
Verified19Single-family remodeling spending 2023: $450 billion
Directional20Educational construction spending 2023: $90 billion, up 8%
Single source21Builder confidence index December 2023: 47
Verified22Total construction starts value 2023: $1.2 trillion per Dodge
Verified23Healthcare facilities spending 2023: $60 billion
Verified24Construction sector multiplier effect on economy: 11.7 jobs per direct job in 2023
Directional25Data center construction spending 2023: $25 billion, up 50%
Single source26Power plant construction 2023: $70 billion
VerifiedEconomic Indicators Interpretation
America’s builders are walking a tightrope of massive spending and slender profits, where the nation’s trillion-dollar backbone is built on a thin 8.5% margin while inflation nips at its heels and public money tries to pave the way forward.
Labor and Employment
1U.S. construction industry employment reached 8.01 million in March 2024, up 16,000 from February
Verified2Construction sector added 217,000 jobs in 2023, averaging 18,000 per month
Verified3Average hourly earnings for construction workers in 2023: $35.07, up 4.5% YoY
Verified4Residential builders employment: 730,000 in 2023, up 2% from 2022
Directional5Construction unemployment rate December 2023: 4.1%, below national average of 3.7%
Single source6Nonresidential construction employment: 2.9 million in Q4 2023
Verified7Carpenter employment in construction: 1.04 million in 2023, up 1.5%
Verified8Labor shortage affected 87% of builders in 2023 NAHB survey
Verified9Construction average weekly hours worked: 39.4 in 2023
Directional10Heavy and civil engineering construction jobs: 2.1 million in 2023
Single source11Women in construction workforce: 11.2% in 2023, up from 10.9% in 2022
Verified12Construction job openings: 383,000 in January 2024
Verified13Median annual wage for construction managers 2023: $104,900
Verified14Electricians in construction: 650,000 employed in 2023
Directional15Construction employment growth in South: 120,000 jobs added 2023
Single source16Quit rate in construction 2023: 2.1% monthly average
Verified17Construction laborers employment: 940,000 in 2023
Verified18Apprentices in construction trades: 570,000 in 2023, up 5%
Verified19Construction employment by age 25-54: 5.6 million in 2023, 70% of total
Directional20Hispanic workers in construction: 30% of workforce in 2023
Single source21Construction job growth Q1 2024: 56,000 jobs
Verified22Operating engineers employment: 410,000 in 2023
Verified23Construction turnover rate 2023: 4.2% quarterly
Verified24Self-employed builders: 15% of construction workforce in 2023
Directional25Construction managers median wage growth 2023: 6.2%
Single source26Drywall installers employment: 120,000 in 2023
Verified27Construction employment Northeast: 1.1 million in 2023
Verified28Total construction payroll employment peak 2023: 8.02 million in October
Verified29Painters in construction: 380,000 employed 2023
DirectionalLabor and Employment Interpretation
The construction industry is building a remarkably resilient house of cards, where steady job growth and rising wages are fueled by a chronic labor shortage, suggesting that while the paychecks are getting heavier, there simply aren't enough hands to carry them.
Production Statistics
1In 2023, U.S. single-family housing starts totaled 954,000 units, a 5.6% increase from 2022, driven by lower interest rates in late year
Verified2Total U.S. housing starts for 2023 were 1.41 million units, down 2.2% from 2022 amid high mortgage rates
Verified3Building permits for new single-family homes in December 2023 stood at 927,000 units annualized, up 3.0% from November
Verified4U.S. housing completions in 2023 reached 1.43 million units, with single-family at 1.01 million, up 8.1% year-over-year
Directional5Multifamily housing starts in 2023 were 456,000 units, down 19% from 2022 due to high construction costs
Single source6In Q4 2023, U.S. housing starts averaged 1.41 million units at a seasonally adjusted annual rate
Verified7Single-family building permits issued in 2023 totaled 950,000 units, a 4% rise from prior year
Verified8Total housing completions for single-family in Q1 2024 were 271,000 units, up 10.5% from Q1 2023
Verified9Multifamily permits in 2023 reached 500,000 units annualized average, down from 2022 peak
Directional10U.S. new residential construction spending in 2023 was $899 billion, up 5% from 2022
Single source11Housing starts in the South region in 2023 were 620,000 units, 44% of national total
Verified12January 2024 single-family starts were 1.03 million annualized, highest since March 2023
Verified13Total permits in 2023 averaged 1.45 million units annually, down 5% from 2022
Verified14Single-family completions in 2023 Q4 were 270,000 units, up 12% quarter-over-quarter
Directional15Multifamily starts dropped to 320,000 annualized in February 2024, down 30% YoY
Single source16New home sales in 2023 totaled 668,000 units, down 11% from 2022
Verified17Building permits for single-family in Northeast 2023 were 120,000 units
Verified18Housing starts under construction inventory in Dec 2023 was 475,000 units
Verified19Total residential permits issued in Midwest 2023: 180,000 units
Directional20Single-family starts in West region 2023: 210,000 units, up 2%
Single source21Completions for multifamily in 2023: 430,000 units nationally
Verified22March 2024 housing starts: 1.48 million annualized, up 9% MoM
Verified23Permits for 5+ unit structures 2023: 480,000 annualized
Verified24Single-family housing starts Q1 2024: 280,000 units
Directional25Total new home inventory for sale end-2023: 184,000 units, 4.7 months supply
Single source26Construction spending on single-family residential Dec 2023: $170 billion annualized
Verified27Multifamily completions Q1 2024: 110,000 units, up 15%
Verified28Housing permits West region 2023: 250,000 units
Verified29Under construction single-family Dec 2023: 320,000 units
Directional30National average housing starts per 1,000 population 2023: 4.2 units
Single sourceProduction Statistics Interpretation
The single-family sector’s cautious optimism is being framed by high rates and costs, but builders are nailing the foundation for a potential rebound, even as the multifamily side seems to be hitting a few snags in the drywall.
Regional and Demographic
1Single-family detached homes 65% of new sales in South 2023
Verified2Median age of homebuyers for new homes 2023: 52 years
Verified3New home sales in California 2023: 45,000 units, down 10%
Verified4Texas housing starts 2023: 180,000 units, 13% national share
Directional5First-time buyers of new homes 2023: 28% of market
Single source6Florida single-family permits 2023: 120,000, up 5%
Verified7Household income for new home buyers average 2023: $128,000
Verified8Northeast housing completions 2023: 110,000 units
Verified9Midwest new home sales 2023: 85,000 units
Directional10Hispanic buyers new homes 2023: 18% share, up 2%
Single source11West region multifamily starts 2023: 120,000 units
Verified12Baby boomer new home purchases 2023: 22%
Verified13Georgia starts 2023: 45,000 units
Verified14New homes with 3+ bedrooms 2023: 85% nationally
Directional15Arizona permits 2023: 35,000 single-family
Single source16Millennial buyers new homes 2023: 35% share
Verified17North Carolina sales 2023: 50,000 new homes
Verified18Married couples buying new homes 2023: 72%
Verified19South Atlantic starts 2023: 350,000 units
Directional20Households with children new buyers 2023: 45%
Single source21Washington state completions 2023: 25,000 units
Verified22New home size average 2023: 2,413 sq ft
Verified23Nevada new sales 2023: 15,000 units, down 15%
Verified24White buyers share 2023: 75% new homes
Directional25Pacific division starts 2023: 140,000 units
Single source26Trade-up buyers 2023: 40% of new home market
Verified27Tennessee permits 2023: 30,000
Verified28New homes under 2,000 sq ft 2023: 20%
VerifiedRegional and Demographic Interpretation
The South's love affair with spacious single-family homes marches on, led by increasingly older and affluent buyers, while millennials and Hispanics slowly chip away at the market's traditional dominance despite a nationwide cooling that spares no state entirely, not even the mighty Sunbelt.
Trends and Sustainability
1U.S. homebuilder confidence index forecasted 2024 average at 52, up from 44 in 2023
Verified272% of builders reported supply chain delays in 2023 NAHB survey
Verified3Net-zero energy homes built 2023: 5% of new single-family starts
Verified4Adoption of modular construction 2023: 15% of builders using prefab methods
Directional5EV charger installations in new homes 2023: 12% of builds, up 50% YoY
Single source6Sustainable materials use by builders 2023: 68% incorporating recycled content
Verified7Builder outlook for 2024 sales: 25% expect increase per NAHB
Verified8Off-site construction market growth 2023-2028 CAGR: 6.5%
Verified9Solar panel integrations in new homes 2023: 8%
Directional10Water-efficient fixtures standard in 82% new homes 2023
Single source113D-printed homes completed 2023: 50 units in U.S.
Verified12Builder traffic index 2023 average: 35, indicating buyer hesitation
Verified13Smart home tech in 65% new builds 2023, up from 55% 2022
Verified14Mass timber use in multifamily 2023: 10% of projects
Directional15Carbon emission reductions targeted: 40% by 2030 in builder pledges
Single source16Tiny homes market growth 2023: 12% YoY to $5 billion
Verified17Builder concerns over regulations 2023: 54% top issue
Verified18Accessory dwelling units (ADUs) permitted 2023: 20,000 nationwide, up 30%
Verified19Green certifications like LEED in 22% commercial builds 2023
Directional20Robotics adoption in construction 2023: 18% of large firms
Single source21Builder price cuts average 2023: 5% on spec homes
Verified22Multifamily vacancy rate 2023 Q4: 6.6%
Verified23AI use in site planning by builders 2023: 25%
Verified24Recycled content in asphalt 2023: 25% average in roads
Directional25Builder incentives for energy efficiency 2023: offered by 75%
Single source26Forecast single-family starts 2024: 970,000 units
VerifiedTrends and Sustainability Interpretation
While builder confidence shrugs off supply chain woes with cautious optimism, the industry’s real momentum is found in a quiet but relentless march toward sustainability and efficiency, even if it has to drag a hesitant buyer and a pile of regulations along for the ride.
Sources & References
- Reference 1CENSUScensus.govVisit source
- Reference 2NAHBnahb.orgVisit source
- Reference 3BLSbls.govVisit source
- Reference 4DOLdol.govVisit source
- Reference 5BEAbea.govVisit source
- Reference 6AGCagc.orgVisit source
- Reference 7CONSTRUCTIONconstruction.comVisit source
- Reference 8CONSTRUCTIONDIVEconstructiondive.comVisit source
- Reference 9TRADINGECONOMICStradingeconomics.comVisit source
- Reference 10EIAeia.govVisit source
- Reference 11STATISTAstatista.comVisit source
- Reference 12WOODWORKSwoodworks.orgVisit source
- Reference 13USGBCusgbc.orgVisit source
- Reference 14MCKINSEYmckinsey.comVisit source
- Reference 15FHWAfhwa.dot.govVisit source