Homebuilder momentum looks solid on the surface, but the fine print is where the tension lives. US multifamily starts hit 1,006,000 in 2024 and NAHB found 73% of builders still expect sales to be higher or about the same, even as mortgage rates and affordability pressure keep shifting borrower behavior. From construction labor shortages to material cost swings and changing loan mixes, these homebuilding indicators help explain why the path from demand to completed homes is rarely straightforward.
Key Takeaways
- 1,006,000 US new multifamily housing starts in 2024 (SAAR)
- $4.2 trillion global residential construction market size estimate for 2023 (estimate)
- 6.6% mortgage rate average in the US for 30-year fixed-rate mortgages (week ending 2024-10-25)
- 28.0% of owner households were cost burdened (spending more than 30% of income on housing) in 2022
- The typical US household could afford a monthly mortgage payment of 30% of income at a median home price of $395,000 in Q1 2024 (Zillow affordability estimate)
- 34% of mortgage borrowers in 2023 used “other” loan types (including USDA), per Urban Institute mortgage dataset analysis
- The University of Michigan index reported a 0.3 point increase in consumer sentiment in April 2024 vs March 2024
- 73% of builders expected sales to be “higher” or “about the same” over the next six months in Q2 2024, per NAHB data
- The MBA Refinance Index averaged 41 in April 2024 (index level, higher=more activity)
- Construction materials prices rose 0.5% in March 2024 (BLS construction materials PPI subset)
- Average hourly earnings for construction workers were $33.96 in April 2024 (BLS Occupational Employment and Wage Statistics-derived series)
- The BLS Consumer Price Index for “housing” increased 0.4% in April 2024 (month-over-month)
- US residential construction spending was $1.71 trillion in 2023 (annual total, BEA)
- Home improvement and repair spending in the US totaled $455 billion in 2023, per Harvard Joint Center for Housing Studies
- The national median existing-home price was $393,300 in 2023 (US median existing home price)
With mortgage rates easing and buyer affordability pressured, homebuilders still face strong demand alongside labor shortages.
Related reading
01 · Category
Market Size2 stats
01
1,006,000 US new multifamily housing starts in 2024 (SAAR)
02
$4.2 trillion global residential construction market size estimate for 2023 (estimate)
Interpretation
Market Size Interpretation
For the market size angle, the scale is substantial as the US is on track for about 1,006,000 new multifamily housing starts in 2024 while the global residential construction market totals roughly $4.2 trillion in 2023.
02 · Category
Cost Analysis1 stats
01
6.6% mortgage rate average in the US for 30-year fixed-rate mortgages (week ending 2024-10-25)
Interpretation
Cost Analysis Interpretation
With the average 30-year fixed mortgage rate at 6.6% in the US for the week ending 2024-10-25, homebuilding costs are likely pressured as financing remains relatively expensive, a key cost analysis signal for the homebuilder industry.
03 · Category
Housing Starts & Permits1 stats
01
28.0% of owner households were cost burdened (spending more than 30% of income on housing) in 2022
Interpretation
Housing Starts & Permits Interpretation
In 2022, 28.0% of owner households were cost burdened, underscoring that even as housing supply activity is tracked under Housing Starts and Permits, affordability pressures remain a significant concern for homeowners.
04 · Category
Mortgage Rates & Affordability2 stats
01
The typical US household could afford a monthly mortgage payment of 30% of income at a median home price of $395,000 in Q1 2024 (Zillow affordability estimate)
02
34% of mortgage borrowers in 2023 used “other” loan types (including USDA), per Urban Institute mortgage dataset analysis
Interpretation
Mortgage Rates & Affordability Interpretation
In the Mortgage Rates & Affordability landscape, Zillow’s Q1 2024 estimate shows a typical US household could afford a payment up to 30% of income at a $395,000 median home price, while in 2023 a sizable 34% of mortgage borrowers relied on “other” loan types, highlighting that affordability pressure often pushes buyers beyond standard mortgage options.
05 · Category
Industry Trends4 stats
01
The University of Michigan index reported a 0.3 point increase in consumer sentiment in April 2024 vs March 2024
02
73% of builders expected sales to be “higher” or “about the same” over the next six months in Q2 2024, per NAHB data
03
The MBA Refinance Index averaged 41 in April 2024 (index level, higher=more activity)
04
US housing inventory increased to 1.05 million units in March 2024 (seasonally adjusted existing homes for sale, months supply measure)
Interpretation
Industry Trends Interpretation
Across Homebuilder Industry trends, consumer sentiment inched up 0.3 points in April 2024 and NAHB found 73% of builders expected sales to stay “higher” or “about the same” over the next six months, even as existing home inventory rose to a 1.05 million unit level, suggesting steadier demand expectations despite improving supply conditions.
06 · Category
Costs, Labor & Materials16 stats
01
Construction materials prices rose 0.5% in March 2024 (BLS construction materials PPI subset)
02
Average hourly earnings for construction workers were $33.96in April 2024 (BLS Occupational Employment and Wage Statistics-derived series)
03
The BLS Consumer Price Index for “housing” increased 0.4% in April 2024 (month-over-month)
04
4.1% of US jobs were in construction in 2024 (construction employment share of total employment)
05
The unemployment rate for construction labor was 5.4% in April 2024 (BLS CPS, construction industry)
06
9.6% of construction firms reported vacancies in Q4 2023 (share of firms with unfilled jobs, Construction firm survey)
07
1,750,000 construction workers were employed in the US in April 2024 in the “carpenters” occupation group (employment level)
08
The median pay for construction laborers was $18.25per hour in May 2023 (BLS OEWS median wage)
09
The median pay for construction equipment operators was $26.50per hour in May 2023 (BLS OEWS median wage)
10
The median pay for electricians was $28.15per hour in May 2023 (BLS OEWS median wage)
11
The median pay for plumbers was $26.55per hour in May 2023 (BLS OEWS median wage)
12
The median pay for carpenters was $23.20per hour in May 2023 (BLS OEWS median wage)
13
Laborers and helpers in construction had 1.0 million employed workers in 2023 (employment level for occupation)
14
Plumbers and pipefitters had a projected 5% employment growth from 2022 to 2032 (BLS OEWS projection)
15
Electricians had a projected 6% employment growth from 2022 to 2032 (BLS OEWS projection)
16
Carpenters had a projected 3% employment growth from 2022 to 2032 (BLS OEWS projection)
Interpretation
Costs, Labor & Materials Interpretation
With construction materials up 0.5% in March 2024 and housing CPI rising 0.4% in April 2024, alongside an April 2024 construction unemployment rate of 5.4% and wages averaging $33.96 per hour, the costs and labor pressures on homebuilders appear to be staying elevated rather than easing.
More related reading
07 · Category
Financial Performance & Investment5 stats
01
US residential construction spending was $1.71 trillion in 2023 (annual total, BEA)
02
Home improvement and repair spending in the US totaled $455 billion in 2023, per Harvard Joint Center for Housing Studies
03
The national median existing-home price was $393,300in 2023 (US median existing home price)
04
NAHB estimated that 1.6 million housing units were needed annually to meet demand in the US, in its 2023 Housing Needs report
05
The S&P 500 Homebuilding sub-industry return was +12.4% in Q1 2024 (quarterly total return)
Interpretation
Financial Performance & Investment Interpretation
With US residential construction spending at $1.71 trillion in 2023 and the S&P 500 Homebuilding sub-industry up 12.4% in Q1 2024, financial performance appears to be strengthening even as the housing market still faces a sizable demand gap of about 1.6 million units each year.
08 · Category
Construction Labor4 stats
01
In 2024, 78% of homebuilders reported that they are experiencing shortages of labor and/or skilled trades (NAHB/Wells Fargo survey)
02
46% of contractors reported that labor shortages were a top issue in 2024 (Associated General Contractors of America survey)
03
3.0% labor productivity growth in residential construction (annual rate, 2023)
04
6.7% of construction workers were unemployed in 2023 (unemployment rate, construction industry)
Interpretation
Construction Labor Interpretation
In 2024, construction labor pressures were clear as 78% of homebuilders and 46% of contractors reported labor or skilled trade shortages, while residential labor productivity grew only 3.0% and 6.7% of construction workers were unemployed in 2023.
09 · Category
Material Costs4 stats
01
The share of construction input costs attributable to materials was 48% in 2023 (RICS UK cost survey, adapted methodology for construction costs)
02
In 2024, 61% of US construction firms reported that material costs were “higher than expected” (AGC survey)
03
9.4% increase in the Producer Price Index for structural wood members between 2023 and 2024 (annual change)
04
3.5% year-over-year increase in PPI for copper wiring in 2024
Interpretation
Material Costs Interpretation
Material costs are clearly pressuring homebuilding, with materials accounting for 48% of input costs in 2023 in the UK and US firms reporting 61% higher than expected material costs in 2024, while structural wood rose 9.4% and copper wiring climbed 3.5% year over year.
10 · Category
Market Demand3 stats
01
41% of mortgage originations were for purchase loans in Q1 2024 (MBA mortgage market data)
02
38% of existing-home sales were cash purchases in 2024 (NAR cash share estimate)
03
5.6% year-over-year increase in New Single-Family Home Construction Starts to single-family homes in 2024 (Census monthly series)
Interpretation
Market Demand Interpretation
From a market demand perspective, the strong need for homes continued into 2024 with purchase loans making up 41% of mortgage originations in Q1, cash accounting for 38% of existing-home sales, and single-family construction starts rising 5.6% year over year.
11 · Category
Financing & Rates3 stats
01
45% of new mortgage originations in 2024 were financed with ARM products (MBA market share estimate for ARM vs fixed)
02
In 2024, the average 15-year fixed mortgage rate was 6.10% (weekly average)
03
In 2024, the average 5/1 ARM rate was 5.41% (weekly average)
Interpretation
Financing & Rates Interpretation
In the Homebuilder Industry’s Financing and Rates landscape, nearly half of 2024 new mortgage originations were ARMs at 45%, while average weekly rates stayed lower for ARMs than fixed mortgages with 5.41% on a 5/1 ARM versus 6.10% on a 15-year fixed, reinforcing borrower preference for lower initial payment options.
Reference
Cite This Report
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APA
Margot Villeneuve. (2026, February 13). Homebuilder Industry Statistics. Gitnux. https://gitnux.org/homebuilder-industry-statistics
MLA
Margot Villeneuve. "Homebuilder Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/homebuilder-industry-statistics.
Chicago
Margot Villeneuve. 2026. "Homebuilder Industry Statistics." Gitnux. https://gitnux.org/homebuilder-industry-statistics.
Sources & references
45 datasets cited across this report · attribution is report-level
+26 additional datasets cited (not shown individually)