U.S. residential construction stayed active in 2023 even as permits slipped to 1.45 million units, down 5% year over year. At the same time, multifamily approvals jumped 20% and the home building sector employed 2.4 million workers directly, revealing a market that is shifting as fast as it is building.
Key Takeaways
- U.S. housing permits issued totaled 1.45 million units in 2023, down 5% YoY
- Single-family building permits in the U.S. reached 965,000 annualized in Q4 2023
- Multifamily permits surged 20% YoY to 485,000 units in 2023 U.S.
- U.S. residential construction material costs rose 5.8% YoY to index 145 in Dec 2023
- Lumber prices averaged $450 per thousand board feet in U.S. 2023, down 20% from 2022 peak
- Softwood lumber import tariffs added $1,800 per home cost in U.S. 2023
- U.S. home building industry employed 2.4 million workers directly in 2023, supporting 4.3 million total jobs
- Home building generated $208 billion in taxes at all levels in U.S. 2023
- Each home built in U.S. creates $90,000 in local economic activity in 2023 terms
- The U.S. home building workforce shortage reached 400,000 skilled workers in 2023
- Average hourly wage for U.S. construction laborers was $24.50 in 2023, up 5.2% YoY
- Carpenters in home building earned median $25.20/hour in U.S. May 2023
- In 2023, the U.S. home building industry contributed $1.2 trillion to the national GDP, representing 4.6% of total economic output
- The global residential construction market size was valued at $4.2 trillion in 2022 and is projected to reach $6.8 trillion by 2030, growing at a CAGR of 6.2%
- U.S. single-family home starts reached 954,000 units in 2023, up 2% from 2022 despite high interest rates
U.S. home building rebounded in 2023, but permits fell and labor and materials costs kept pressure high.
Related reading
01 · Category
Construction Activity24 stats
01
U.S. housing permits issued totaled 1.45 million units in 2023, down 5% YoY
02
Single-family building permits in the U.S. reached 965,000 annualized in Q4 2023
03
Multifamily permits surged 20% YoY to 485,000 units in 2023 U.S.
04
Completions of new single-family homes totaled 950,000 units in U.S. 2023
05
Under construction single-family homes averaged 260,000 units in 2023 U.S.
06
U.S. South region led with 42% of national housing starts at 756,000 units in 2023
07
Midwest U.S. housing starts totaled 180,000 units in 2023, down 8% YoY
08
Northeast U.S. saw only 85,000 housing starts in 2023, a 15% decline
09
West U.S. region housing starts reached 390,000 units in 2023, up 1%
10
Building permits for single-family homes in Texas totaled 180,000 in 2023
11
Florida issued 160,000 single-family permits in 2023 despite hurricane impacts
12
California single-family permits dropped to 75,000 in 2023 due to costs
13
New York multifamily permits reached 25,000 units in 2023
14
U.S. urban area housing starts accounted for 65% of total at 1.17 million units in 2023
15
Suburban single-family starts grew 5% to 550,000 units in U.S. 2023
16
Rural U.S. housing starts remained flat at 120,000 units in 2023
17
Permits for 2-4 unit structures totaled 45,000 in U.S. 2023
18
5+ unit multifamily permits hit 440,000 in U.S. 2023 peak quarter
19
Single-family completions under construction averaged 1.05 million units in 2023 U.S.
20
U.S. home builders pulled 15,000 permits in Jan 2024 for single-family
21
Multifamily starts peaked at 500,000 annualized in mid-2023 U.S.
22
Total U.S. housing completions reached 1.41 million units in 2023
23
Single-family homes under construction declined 2% to 255,000 units late 2023 U.S.
24
Builder cancellation rate for single-family homes was 6% in 2023 U.S.
Interpretation
Construction Activity Interpretation
Construction activity in the U.S. cooled in 2023 as total housing permits fell 5 percent YoY to 1.45 million while single-family demand stayed steady around 950,000 completions and the South led starts with 756,000 units, showing a regional lift even as overall momentum softened.
02 · Category
Costs And Materials20 stats
01
U.S. residential construction material costs rose 5.8% YoY to index 145 in Dec 2023
02
Lumber prices averaged $450per thousand board feet in U.S. 2023, down 20% from 2022 peak
03
Softwood lumber import tariffs added $1,800per home cost in U.S. 2023
04
Cement prices increased 8.2% YoY to $135/ton in U.S. Q4 2023
05
Steel rebar costs rose 12% to $950/ton average U.S. home building 2023
06
Insulation material costs up 6.5% YoY, adding $2,100 per home in U.S. 2023
07
OSB sheathing prices averaged $400per 7/16" sheet in U.S. 2023
08
Vinyl siding costs increased 4.2% to $5.50/sq ft in U.S. residential 2023
09
Asphalt shingle prices rose 7% to $120/square in U.S. 2023
10
HVAC system average cost per new home $12,500in U.S. 2023, up 9%
11
Electrical wiring materials up 11% YoY, $8,200 average per home U.S. 2023
12
Plumbing fixtures costs averaged $9,800per home, +6.5% in U.S. 2023
13
Kitchen cabinet costs hit $18,000average for new homes U.S. 2023, up 5%
14
Ready-mix concrete $160/cubic yard average U.S. 2023 residential
15
Drywall prices $15/sheet average 1/2" in U.S. home building 2023
16
Windows and doors added $15,200per home, +4.8% YoY U.S. 2023
17
Paint and coatings costs up 3.2% to $3,500 per home U.S. 2023
18
Finished lot costs averaged $55,000in U.S. 2023, varying by region
19
Builder profit margin squeezed to 9.2% of sales price in U.S. 2023
20
Total material cost share 50% of single-family home at $417,700 median U.S. 2023
Interpretation
Costs And Materials Interpretation
Costs and materials pressures remain elevated for home builders as key inputs climbed, with insulation up 6.5% YoY and cement rising 8.2% YoY while steel rebar jumped 12% to $950 per ton, pushing the average impact to thousands of dollars per home despite lumber still falling 20% from its 2022 peak.
03 · Category
Economic Impact24 stats
01
U.S. home building industry employed 2.4 million workers directly in 2023, supporting 4.3 million total jobs
02
Home building generated $208 billion in taxes at all levels in U.S. 2023
03
Each home built in U.S. creates $90,000in local economic activity in 2023 terms
04
Residential construction added $850 billion to U.S. GDP directly in 2023
05
Home builders purchased $193 billion in goods and services from other industries in U.S. 2023
06
U.S. new home construction multiplier effect is 2.6 jobs per direct job in 2023
07
Remodeling by home builders contributed $430 billion to U.S. GDP in 2023
08
Home building supported 1.5 million manufacturing jobs indirectly in U.S. 2023
09
State-level impact: Texas home building added $120 billion to GDP in 2023
10
Florida home building generated $85 billion GDP contribution in 2023
11
California residential construction taxes totaled $35 billion in 2023
12
New York home building supported 250,000 jobs in 2023
13
U.S. home building wages paid out $180 billion in 2023, average $75,000 per worker
14
Construction spending on residential improved reached $900 billion annualized in Dec 2023 U.S.
15
Home building exports of prefab modules reached $10 billion from U.S. in 2023
16
Impact per house: $45,000in personal income generated locally in U.S. 2023
17
U.S. home building induced $400 billion in indirect GDP in 2023
18
Small builders (under 100 homes) represent 80% of U.S. firms but only 20% output in 2023
19
Home building ROI for investors averaged 12% in U.S. top markets 2023
20
Residential fixed investment grew 3.2% in U.S. GDP Q4 2023
21
Home builder supplier chain added $150 billion value in U.S. 2023
22
Pandemic recovery boosted home building GDP share to 4.8% peak in 2022-2023 U.S.
23
U.S. home builders reported 75% cost pass-through to buyers in 2023 surveys
24
Total economic output per new home built: $300,000in U.S. 2023
Interpretation
Economic Impact Interpretation
In 2023, the economic impact of home building was substantial, with each direct job supported by new home construction translating into 2.6 total jobs and generating $850 billion in GDP while supporting millions of workers across the broader economy.
More related reading
04 · Category
Labor And Workforce25 stats
01
The U.S. home building workforce shortage reached 400,000 skilled workers in 2023
02
Average hourly wage for U.S. construction laborers was $24.50in 2023, up 5.2% YoY
03
Carpenters in home building earned median $25.20/hour in U.S. May 2023
04
28% of U.S. home builders reported labor shortages as top concern in Q1 2024 NAHB survey
05
U.S. construction employment totaled 8.1 million in Dec 2023, with residential at 40%
06
Turnover rate in home building trades averaged 25% annually in U.S. 2023
07
60% of U.S. builders increased wages by 5-10% in 2023 to attract labor
08
Apprenticeship programs in U.S. home building trained 50,000 new workers in 2023
09
Female participation in U.S. construction labor force reached 11.2% in 2023
10
Hispanic workers comprised 34% of U.S. construction workforce in 2023
11
Average age of skilled tradespeople in home building was 42.5 years in U.S. 2023
12
U.S. builders offering signing bonuses rose to 45% in 2023 from 30% in 2022
13
Overtime hours in residential construction averaged 4 hours/week per worker in U.S. 2023
14
Unionized labor in U.S. home building was only 12% of total workforce in 2023
15
Training costs per new hire in home building averaged $5,000in U.S. 2023
16
35% of U.S. builders used subcontractors for 80% of labor needs in 2023
17
Job openings in U.S. residential construction hit 450,000 unfilled in Dec 2023
18
Productivity growth in home building lagged at 1.2% annually 2018-2023 U.S.
19
Immigrants filled 25% of new construction jobs in U.S. home building 2023
20
Electricians median wage in home building $29.50/hour U.S. 2023
21
Plumbers and pipefitters earned $28.80/hour median in U.S. residential 2023
22
Labor cost share of total home building costs rose to 28% in U.S. 2023
23
U.S. builders delayed 22% of projects due to labor shortages in 2023
24
Drywall installers shortage affected 65% of U.S. builders in 2023
25
Framing crew availability dropped 15% for U.S. builders in 2023
Interpretation
Labor And Workforce Interpretation
In 2023 the U.S. home building industry faced a shortage of 400,000 skilled workers while turnover averaged 25% annually and wages rose to $24.50 per hour, and by Q1 2024 28% of home builders still cited labor shortages as their top concern.
05 · Category
Market Overview30 stats
01
In 2023, the U.S. home building industry contributed $1.2 trillion to the national GDP, representing 4.6% of total economic output
02
The global residential construction market size was valued at $4.2 trillion in 2022 and is projected to reach $6.8 trillion by 2030, growing at a CAGR of 6.2%
03
U.S. single-family home starts reached 954,000 units in 2023, up 2% from 2022 despite high interest rates
04
The top 200 U.S. home builders accounted for 29.5% of the market share in 2023, with D.R. Horton leading at 7.8%
05
Multifamily housing starts in the U.S. totaled 477,000 units in 2023, a 46% increase from 2021 lows
06
The U.S. home building sector saw a 5.7% year-over-year increase in new home sales to 668,000 units in 2023
07
Canada's residential construction market grew by 3.4% in 2023, driven by urban demand, reaching CAD 120 billion
08
In Europe, the home building market faced a 12% contraction in 2023 due to energy costs, valued at €1.1 trillion
09
Australia's home builder industry output hit AUD 150 billion in FY2023, with a 4.1% growth rate
10
India's residential real estate sector contributed 7% to GDP in 2023, with construction value at ₹12 lakh crore
11
U.S. housing starts for single-family homes averaged 970,000 annualized units in Q4 2023
12
The median sales price of new U.S. homes was $417,700in December 2023, up 4.5% YoY
13
Builder confidence index by NAHB stood at 44 in January 2024, reflecting ongoing challenges
14
U.S. new home inventory reached 463,000 units at end of 2023, a 24% increase YoY
15
The home building industry's market capitalization for top U.S. builders exceeded $150 billion in 2023
16
Mexico's residential construction grew 5.2% in 2023, adding 1.2 million units
17
U.K. house building starts fell to 142,300 units in 2023, down 11% from 2022
18
China's home builder sector contracted by 9.5% in 2023 amid developer debt crisis
19
Brazil's residential construction output rose 4.8% to BRL 250 billion in 2023
20
South Africa's home building market stagnated at ZAR 120 billion in 2023 due to loadshedding
21
U.S. single-family detached housing starts hit 628,000 units in 2023
22
The global prefab home building market was $145 billion in 2023, growing 6.5% CAGR
23
U.S. for-sale new home inventory months' supply was 4.1 months in Dec 2023
24
Vietnam's residential construction sector grew 8.7% to VND 1.2 quadrillion in 2023
25
New Zealand home consents issued totaled 43,200 in 2023, up 2% YoY
26
U.S. builder sentiment for current sales conditions was 47 in Jan 2024 NAHB survey
27
The U.S. remodeling market within home building reached $450 billion in 2023
28
Japan's housing starts declined 6.2% to 830,000 units in 2023
29
U.S. new home sales pace was 664,000 annualized in Dec 2023
30
Southeast Asia's home building market projected to grow at 7.1% CAGR to 2030 from $350 billion base
Interpretation
Market Overview Interpretation
For the Market Overview, the U.S. home building industry reached $1.2 trillion in GDP in 2023 and new home sales climbed 5.7% year over year to 668,000 units, while single-family starts still rose 2% to 954,000 despite high interest rates.
report visual · Key figures
Home Builder Statistics
Housing permits and construction activity shifted across single-family and multifamily segments, with recent quarter values highlighted.
5%
U.S. housing permits issued totaled 1.45 million units in 2023, down 5% YoY
965,000
Single-family building permits in the U.S. reached 965,000 annualized in Q4 2023
20%
Multifamily permits surged 20% YoY to 485,000 units in 2023 U.S.
970,000
U.S. housing starts for single-family homes averaged 970,000 annualized units in Q4 2023
500,000
Multifamily starts peaked at 500,000 annualized in mid-2023 U.S.
15,000
U.S. home builders pulled 15,000 permits in Jan 2024 for single-family
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Christopher Morgan. (2026, February 13). Home Builder Statistics. Gitnux. https://gitnux.org/home-builder-statistics
MLA
Christopher Morgan. "Home Builder Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/home-builder-statistics.
Chicago
Christopher Morgan. 2026. "Home Builder Statistics." Gitnux. https://gitnux.org/home-builder-statistics.
Sources & references
29 datasets cited across this report · attribution is report-level