GITNUXREPORT 2025

Home Building Industry Statistics

U.S. homebuilding sector grew, emphasizing green, digital, and energy-efficient homes.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

The average cost to build a new single-family home in the U.S. was about $296,652 in 2023

Statistic 2

Material costs for home construction increased by approximately 15% from 2021 to 2022

Statistic 3

The overall construction material cost index rose by approximately 16% from 2021 to 2023

Statistic 4

The average cost per square foot to build a new home in suburban areas was around $150 in 2023

Statistic 5

The average demolition cost for older homes was about $10,000 per project in 2023

Statistic 6

The average mortgage size for new home purchases in 2023 was approximately $420,000

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The share of first-time homebuyers in new construction homes was approximately 24% in 2023

Statistic 8

The median age of homebuyers in 2023 was 36 years, indicating an ongoing interest among Millennials

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Approximately 72% of new homebuyers financed their purchase through a mortgage in 2023

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The median down payment on new homes was approximately 7% of the purchase price in 2023

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Approximately 55% of homebuyers in 2023 considered energy efficiency as a critical factor in their purchase decision

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The national average time to complete a new single-family home was approximately 7 months in 2023

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In 2022, the total new residential construction starts in the U.S. reached roughly 1.28 million units

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The U.S. housing inventory shortage was estimated at around 1.8 million homes in 2023

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The number of homes sold in new developments increased by 10% in 2023 compared to 2022

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Federal housing policy plans forecast a need for an additional 5.5 million new homes by 2030 to meet demand

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The number of permits issued for new residential buildings in 2023 was roughly 1.23 million

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The average lease period for new home construction contracts is about 6 months

Statistic 19

The share of multifamily housing projects increased to 28% of all new residential starts in 2023

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The annual growth rate of homebuilding permits in 2023 was about 8%, indicating rising housing activity

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The average duration from land purchase to home completion was around 14 months in 2023

Statistic 22

The U.S. government announced plans to invest over $100 billion in affordable housing development by 2026

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The average annual growth rate of new home construction in sunbelt states was about 10% from 2021 to 2023

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The share of first-time homebuyers purchasing newly constructed homes increased slightly to 24% in 2023

Statistic 25

The most common financing method for new residential projects in 2023 was private bank loans, used by over 60% of developers

Statistic 26

The share of high-density residential projects grew to 32% of new developments in 2023, indicating a trend toward urban infill projects

Statistic 27

The typical timeline from permit approval to final inspection averaged about 6.5 months in 2023

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The U.S. residential construction sector accounted for approximately 1.3 million jobs in 2022

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The homebuilding industry’s contribution to the U.S. GDP was about 3.1% in 2022

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The average price of a newly built single-family home in urban areas was about $430,000 in 2023

Statistic 31

Approximately 65% of homebuilders report shortages of skilled labor as a major obstacle in 2023

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The median new home sale price in the U.S. reached $400,000 in Q2 2023

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The average size of a new single-family home increased to about 2,624 square feet in 2023

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Construction employment in the U.S. homebuilding sector grew by 4.5% in 2022

Statistic 35

Home builder confidence index rose to 65 in Q3 2023, indicating moderate optimism in the industry

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The average builder’s profit margin in 2022 was around 20%

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The percentage of green-certified new homes increased to 35% in 2023

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The cost of land acquisition for residential development increased by roughly 12% between 2021 and 2023

Statistic 39

The share of adaptive reuse and renovation projects in the residential sector grew to 15% in 2023

Statistic 40

The proportion of homes built with pre-fabricated components increased to 22% in 2023

Statistic 41

The number of modular homes shipped in the U.S. increased by 18% in 2023 compared to 2022

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The average number of bathrooms in new homes increased to 2.5 in 2023

Statistic 43

The majority of new home buyers in 2023 favored open-concept floor plans, with over 70% opting for this design

Statistic 44

The median universal price for a newly built single-family home in the U.S. was approximately $385,000 in 2023

Statistic 45

The number of workers in green building and sustainable construction increased by nearly 20% between 2021 and 2023

Statistic 46

The total volume of residential construction loans issued in the U.S. reached $250 billion in 2023

Statistic 47

The percentage of homeowners opting for modular and prefab homes increased to 22% of new builds in 2023

Statistic 48

The average annual wage for construction workers in residential building increased to approximately $55,000 in 2023

Statistic 49

The number of displaced workers due to industry automation decreased slightly in 2023, as more companies adopted new technologies

Statistic 50

The percentage of new homes built with energy-efficient features increased to about 70% in 2023

Statistic 51

The number of sustainable homes (certified green or energy-efficient) built annually increased by approximately 25% from 2021 to 2023

Statistic 52

Over 80% of builders in 2023 reported utilizing some form of advanced technology, such as 3D modeling or drones, in their construction processes

Statistic 53

The number of new homes with smart home features increased by 35% from 2021 to 2023

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The average builder reports that 15% of their projects include eco-friendly or net-zero features as standard in 2023

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The share of digital tools like virtual reality and 3D modeling in home design increased to 80% among builders in 2023

Statistic 56

The percentage of homebuyers considering green or energy-efficient upgrades during new construction rose to 65% in 2023

Statistic 57

The number of new homes built with integrated solar energy systems increased by 40% from 2021 to 2023

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Key Highlights

The U.S. residential construction sector accounted for approximately 1.3 million jobs in 2022
The average cost to build a new single-family home in the U.S. was about $296,652 in 2023
The homebuilding industry’s contribution to the U.S. GDP was about 3.1% in 2022
The national average time to complete a new single-family home was approximately 7 months in 2023
In 2022, the total new residential construction starts in the U.S. reached roughly 1.28 million units
The average price of a newly built single-family home in urban areas was about $430,000 in 2023
Material costs for home construction increased by approximately 15% from 2021 to 2022
Approximately 65% of homebuilders report shortages of skilled labor as a major obstacle in 2023
The percentage of new homes built with energy-efficient features increased to about 70% in 2023
The average mortgage size for new home purchases in 2023 was approximately $420,000
The U.S. housing inventory shortage was estimated at around 1.8 million homes in 2023
The median new home sale price in the U.S. reached $400,000 in Q2 2023
The average size of a new single-family home increased to about 2,624 square feet in 2023

The home building industry is experiencing a dynamic surge, with over 1.3 million jobs in 2022, rising investment in green and smart features, and a growing shift towards urban infill and sustainable construction—making it a pivotal force shaping the future of American housing.

Construction Costs and Material Pricing

The average cost to build a new single-family home in the U.S. was about $296,652 in 2023
Material costs for home construction increased by approximately 15% from 2021 to 2022
The overall construction material cost index rose by approximately 16% from 2021 to 2023
The average cost per square foot to build a new home in suburban areas was around $150 in 2023
The average demolition cost for older homes was about $10,000 per project in 2023

Construction Costs and Material Pricing Interpretation

With construction material costs soaring by approximately 16% between 2021 and 2023, the $296,652 price tag for building a new home now reads less like a budget and more like a brick-and-mortar financial marathon, truly making "building your castle" an increasingly costly royal affair.

Homebuyer Demographics and Financing

The average mortgage size for new home purchases in 2023 was approximately $420,000
The share of first-time homebuyers in new construction homes was approximately 24% in 2023
The median age of homebuyers in 2023 was 36 years, indicating an ongoing interest among Millennials
Approximately 72% of new homebuyers financed their purchase through a mortgage in 2023
The median down payment on new homes was approximately 7% of the purchase price in 2023
Approximately 55% of homebuyers in 2023 considered energy efficiency as a critical factor in their purchase decision

Homebuyer Demographics and Financing Interpretation

With millennials leading the charge at a median age of 36, a $420,000 mortgage mostly financed at 7% down, and energy efficiency at the top of their minds, 2023's homebuilding scene reveals a cautious yet eco-conscious generation reshaping the new construction landscape—proof that today's homebuyers are building smarter, not just bigger.

Housing Supply, Permits, and Market Inventory

The national average time to complete a new single-family home was approximately 7 months in 2023
In 2022, the total new residential construction starts in the U.S. reached roughly 1.28 million units
The U.S. housing inventory shortage was estimated at around 1.8 million homes in 2023
The number of homes sold in new developments increased by 10% in 2023 compared to 2022
Federal housing policy plans forecast a need for an additional 5.5 million new homes by 2030 to meet demand
The number of permits issued for new residential buildings in 2023 was roughly 1.23 million
The average lease period for new home construction contracts is about 6 months
The share of multifamily housing projects increased to 28% of all new residential starts in 2023
The annual growth rate of homebuilding permits in 2023 was about 8%, indicating rising housing activity
The average duration from land purchase to home completion was around 14 months in 2023
The U.S. government announced plans to invest over $100 billion in affordable housing development by 2026
The average annual growth rate of new home construction in sunbelt states was about 10% from 2021 to 2023
The share of first-time homebuyers purchasing newly constructed homes increased slightly to 24% in 2023
The most common financing method for new residential projects in 2023 was private bank loans, used by over 60% of developers
The share of high-density residential projects grew to 32% of new developments in 2023, indicating a trend toward urban infill projects
The typical timeline from permit approval to final inspection averaged about 6.5 months in 2023

Housing Supply, Permits, and Market Inventory Interpretation

Despite a surge in permits and a 10% rise in new home sales signaling construction optimism, the U.S. faces a daunting 1.8 million-home shortage and a 14-month from-start-to-finish timeline, highlighting that while the industry builds faster—averaging 7 months per home—it still struggles to keep pace with America's growing need for housing.

Market Trends and Economic Impact

The U.S. residential construction sector accounted for approximately 1.3 million jobs in 2022
The homebuilding industry’s contribution to the U.S. GDP was about 3.1% in 2022
The average price of a newly built single-family home in urban areas was about $430,000 in 2023
Approximately 65% of homebuilders report shortages of skilled labor as a major obstacle in 2023
The median new home sale price in the U.S. reached $400,000 in Q2 2023
The average size of a new single-family home increased to about 2,624 square feet in 2023
Construction employment in the U.S. homebuilding sector grew by 4.5% in 2022
Home builder confidence index rose to 65 in Q3 2023, indicating moderate optimism in the industry
The average builder’s profit margin in 2022 was around 20%
The percentage of green-certified new homes increased to 35% in 2023
The cost of land acquisition for residential development increased by roughly 12% between 2021 and 2023
The share of adaptive reuse and renovation projects in the residential sector grew to 15% in 2023
The proportion of homes built with pre-fabricated components increased to 22% in 2023
The number of modular homes shipped in the U.S. increased by 18% in 2023 compared to 2022
The average number of bathrooms in new homes increased to 2.5 in 2023
The majority of new home buyers in 2023 favored open-concept floor plans, with over 70% opting for this design
The median universal price for a newly built single-family home in the U.S. was approximately $385,000 in 2023
The number of workers in green building and sustainable construction increased by nearly 20% between 2021 and 2023
The total volume of residential construction loans issued in the U.S. reached $250 billion in 2023
The percentage of homeowners opting for modular and prefab homes increased to 22% of new builds in 2023
The average annual wage for construction workers in residential building increased to approximately $55,000 in 2023
The number of displaced workers due to industry automation decreased slightly in 2023, as more companies adopted new technologies

Market Trends and Economic Impact Interpretation

Despite a 20% rise in green building professionals and an 18% surge in modular home shipments, the U.S. homebuilding industry—contributing over 3% to GDP with nearly 1.3 million jobs—continues to navigate labor shortages, escalating land costs, and evolving consumer preferences, all while maintaining a steady dose of optimism and profit margins that suggest resilience in the face of modernization challenges.

Sustainable and Technology-Integrated Housing

The percentage of new homes built with energy-efficient features increased to about 70% in 2023
The number of sustainable homes (certified green or energy-efficient) built annually increased by approximately 25% from 2021 to 2023
Over 80% of builders in 2023 reported utilizing some form of advanced technology, such as 3D modeling or drones, in their construction processes
The number of new homes with smart home features increased by 35% from 2021 to 2023
The average builder reports that 15% of their projects include eco-friendly or net-zero features as standard in 2023
The share of digital tools like virtual reality and 3D modeling in home design increased to 80% among builders in 2023
The percentage of homebuyers considering green or energy-efficient upgrades during new construction rose to 65% in 2023
The number of new homes built with integrated solar energy systems increased by 40% from 2021 to 2023

Sustainable and Technology-Integrated Housing Interpretation

As the homebuilding industry accelerates into a greener, smarter future with over 70% of new homes now eco-efficient and tech-integrated—highlighting a 40% surge in solar-powered residences and 65% of buyers seeking sustainable upgrades—builders are harnessing digital tools and innovation to turn houses into not just homes, but energy-conscious havens for the modern era.