A 6.81% average for a 30-year fixed mortgage in 2023 is only part of the stress placed on new home buyers, even as median new single-family prices reached $417,700. At the same time, producer and construction cost gauges moved in opposite directions in some materials, with the Construction Cost Index up 5.2% and labor still taking 27% of the build cost. This post pulls those House Building Industry statistics together so you can see exactly where affordability tightened and where the supply chain finally shifted.
Key Takeaways
- Producer Price Index for residential construction rose 4.8% in 2023
- Median sales price of new single-family homes: $417,700 in 2023, up 3.9%
- Construction Cost Index (CCI) increased 5.2% year-over-year in Q4 2023
- US residential construction market size: $920 billion in 2023
- Single-family home sales: 668,000 new units in 2023, down 12%
- Homebuilder confidence index averaged 42 in 2023, lowest since 2012
- US construction employment reached 8.03 million in March 2024, up 1.2% year-over-year
- Residential builders employed 1.1 million workers in 2023, per NAHB
- Construction industry added 214,000 jobs in 2023, with residential segment 45%
- In 2023, US single-family housing starts totaled 977,000 units, marking a 5.6% increase from 2022
- New residential construction permits for single-family homes reached 935,000 units in 2023, up 4.2% year-over-year
- Multifamily housing starts in the US hit 477,000 units in 2023, a 22% decline from the previous year due to high interest rates
- Steel mill products for construction: +12% in 2023
- Cement consumption in residential: 120 million tons in 2023
- Softwood lumber usage: 35 billion board feet for homes in 2023
In 2023, higher costs and rates pushed new home prices up, slowing sales and worsening affordability.
Related reading
01 · Category
Cost and Price Indices30 stats
01
Producer Price Index for residential construction rose 4.8% in 2023
02
Median sales price of new single-family homes: $417,700in 2023, up 3.9%
03
Construction Cost Index (CCI) increased 5.2% year-over-year in Q4 2023
04
Average cost to build a single-family home: $428,215in 2023 per NAHB
05
Framing lumber prices up 2.1% in 2023 after 2022 decline
06
Residential fixed investment deflator: 4.7% inflation in 2023
07
Home price index (FHFA): +5.1% annual growth in Q4 2023
08
Building materials cost share of new home: 57% in 2023, highest in decades
09
Labor cost share in new home construction: 27% in 2023
10
Lot cost percentage: 16% of total home cost in 2023
11
Finished lot price average: $85,139in 2023, up 10%
12
Softwood lumber PPI: +1.5% in 2023
13
Ready-mix concrete prices: up 6.3% in 2023
14
Residential electricity construction costs: +8.2% in 2023
15
Mortgage rate impact: 30-year fixed averaged 6.81% in 2023
16
Builder cost of capital up 20% in 2023 due to rates
17
Regional cost variation: Northeast home build cost $510,000avg 2023
18
South average build cost: $395,000in 2023
19
Midwest construction cost index: +4.9% in 2023
20
West coast build costs: $520,000median 2023
21
Turnkey home price inflation: 6.2% in 2023
22
Remodeling cost index up 1.8% in Q4 2023
23
Wholesale building materials inflation: 3.4% annual 2023
24
Custom home build average: $650,000in 2023
25
Spec home development cost: $380/sq ft in 2023
26
Sq ft cost for new homes: $150average in 2023, up from $140
27
Insulation materials costs rose 7.1% in 2023
28
Roofing products PPI: +4.5% 2023
29
Gypsum products prices: up 9.2% due to shortages 2023
30
Plywood prices declined 8% in late 2023
Interpretation
Cost and Price Indices Interpretation
It seems every element of building a home—from the lumber in its bones to the land beneath it—decided to have an expensive year together, pushing the dream of a new house further into the realm of "maybe someday" for many.
02 · Category
Economic and Market Trends24 stats
01
US residential construction market size: $920 billion in 2023
02
Single-family home sales: 668,000 new units in 2023, down 12%
03
Homebuilder confidence index averaged 42 in 2023, lowest since 2012
04
Residential construction GDP contribution: 4.1% in 2023
05
New home inventory: 476,000 units end of 2023, up 20%
06
Builder backlog: 6.3 months supply in Q4 2023
07
Multifamily market vacancy: 5.8% in 2023
08
Remodeling expenditure: $450 billion total in 2023
09
Housing affordability index: 98.1 in 2023, worst since 1980s
10
First-time buyer share: 28% of new home purchases 2023
11
Investor purchases of new homes: 17% in 2023
12
Average new home size: 2,235 sq ft in 2023, slight decline
13
2024 forecast: single-family sales 680,000 units
14
Multifamily deliveries expected 390,000 units 2024
15
Regional market growth: South 6% in residential spending 2023
16
Builder profit margins: 10.2% average in 2023, down from 12%
17
Rental market absorption rate: 93% for new units 2023
18
Home price-to-income ratio: 5.6 nationally in 2023
19
Construction spending total: $2.05 trillion in 2023, residential 45%
20
Impact of rates: sales drop 15% per 1% rate hike in 2023 models
21
Modular construction market: $12 billion, 5% share in 2023
22
ADU construction boom: 50,000 units permitted 2023
23
Energy-efficient homes sales: 25% premium price in 2023
24
Shortage of homes: 4 million unit deficit estimated 2023
Interpretation
Economic and Market Trends Interpretation
Despite its massive $920 billion size, the U.S. housing industry in 2023 was a paradox of builder anxiety, historic unaffordability, and a stubborn, multi-million home shortage, all while Americans spent nearly as much fixing their old homes as building new ones.
03 · Category
Employment Statistics30 stats
01
US construction employment reached 8.03 million in March 2024, up 1.2% year-over-year
02
Residential builders employed 1.1 million workers in 2023, per NAHB
03
Construction industry added 214,000 jobs in 2023, with residential segment 45%
04
Average hourly earnings for construction workers: $35.42in Q1 2024, up 4.5%
05
Carpenter employment in residential: 850,000 in 2023, shortage of 100,000 noted
06
Labor force participation in construction: 65.2% in 2023, below pre-pandemic 68%
07
NAHB survey: 87% of builders report labor shortages in 2024
08
Construction unemployment rate: 4.2% in March 2024
09
Residential specialty trade contractors: 3.2 million employed in 2023
10
Job openings in construction: 383,000 unfilled in Feb 2024
11
Women in construction workforce: 11.2% in 2023, up from 9.9% in 2020
12
Hispanic workers: 30% of construction labor force in 2023
13
Apprentice programs trained 50,000 new construction workers in 2023
14
Average construction worker age: 42.7 years in 2023, aging workforce issue
15
Turnover rate in residential construction: 25% annually in 2023
16
Productivity growth in residential building: 1.2% per year 2018-2023
17
Union membership in construction: 12.6% in 2023
18
Self-employed builders: 15% of residential workforce in 2023
19
Construction wages grew 5.1% in 2023, outpacing inflation
20
Entry-level carpenter wage: $22.50/hour median in 2023
21
Foreman salaries average $85,000/year in residential sector 2023
22
60% of builders delay projects due to labor shortages per 2024 NAHB survey
23
Construction employment in South: 2.9 million in 2023
24
Midwest construction jobs: 1.1 million, stable in 2023
25
Northeast residential employment down 2% to 750,000 in 2023
26
West coast construction workforce: 1.6 million in 2023
27
Temporary workers in residential: 8% of workforce in 2023
28
Training hours per worker: 40 hours average in 2023 programs
29
Quit rate in construction: 3.2% monthly average 2023
30
Construction industry weekly earnings: $1,352in Q4 2023
Interpretation
Employment Statistics Interpretation
With nearly 9 in 10 builders scrambling to find workers and wages rising faster than a freshly framed wall, the industry is booming so hard it's practically building its own labor shortage.
More related reading
04 · Category
Housing Starts and Permits30 stats
01
In 2023, US single-family housing starts totaled 977,000 units, marking a 5.6% increase from 2022
02
New residential construction permits for single-family homes reached 935,000 units in 2023, up 4.2% year-over-year
03
Multifamily housing starts in the US hit 477,000 units in 2023, a 22% decline from the previous year due to high interest rates
04
Total US housing starts in December 2023 were at a seasonally adjusted annual rate of 1.46 million units
05
Building permits for single-family structures in 2023 averaged 946,000 annually, the highest since 2006 excluding pandemic years
06
US housing completions reached 1.42 million units in 2023, with single-family at 967,000
07
Permits for multifamily units dropped 25% in 2023 to 524,000, reflecting financing challenges
08
In the South region, housing starts surged 8.7% to 645,000 units in 2023
09
Northeast housing permits fell 12% in 2023 amid labor shortages, totaling 112,000 units
10
Midwest single-family starts increased 3.2% to 183,000 units in 2023
11
West region multifamily starts declined 30% to 140,000 units due to costs
12
Total US building permits in 2023: 1.46 million units, down 2.6% from 2022 peak
13
Single-family authorizations in October 2023: 947,000 annual rate, up 6.5%
14
Housing starts under construction averaged 1.05 million units in 2023
15
Completions for single-family homes: 1.01 million in 2023, up 7%
16
Permits issued in urban areas: 1.12 million in 2023
17
Rural housing starts: 245,000 units in 2023, stable growth
18
Single-family starts in Q4 2023: 1.027 million annual rate
19
Multifamily permits in Q1 2024: down 14% to 370,000 rate
20
Total starts forecast for 2024: 1.43 million units by NAHB
21
Single-family builders' permit confidence index at 72 in Jan 2024
22
Housing starts in Texas: 250,000 units in 2023, leading nation
23
Florida multifamily starts: 120,000 in 2023
24
California single-family permits: 85,000 in 2023, down 5%
25
New York total starts: 45,000 units in 2023
26
Single-family starts per 1,000 population highest in South at 4.2 in 2023
27
National average housing starts per capita: 3.1 per 1,000 in 2023
28
Permits revised upward for 2023 by 1.5% in annual data
29
Detached single-family starts: 954,000 in 2023
30
Attached single-family starts: 23,000 in 2023, minor share
Interpretation
Housing Starts and Permits Interpretation
The housing market, like a stubborn homeowner renovating on a budget, is seeing single-family homes get a slight, hopeful upgrade while high interest rates have bluntly evicted the multifamily sector from its rapid expansion.
05 · Category
Material Usage and Prices26 stats
01
Steel mill products for construction: +12% in 2023
02
Cement consumption in residential: 120 million tons in 2023
03
Softwood lumber usage: 35 billion board feet for homes in 2023
04
Engineered wood products market: $10.2 billion in US residential 2023
05
Asphalt roofing shingles demand: 12 billion sq ft in 2023
06
Drywall consumption: 25 billion sq ft for new homes 2023
07
Windows and doors market: $18.5 billion in residential new construction 2023
08
HVAC equipment shipments for homes: 5.2 million units in 2023
09
Plumbing fixtures usage: 4.8 million toilets installed in new homes 2023
10
Electrical wire and cable for residential: 2.5 billion feet used 2023
11
OSB usage in single-family: 12 billion sq ft in 2023
12
Fiberglass insulation batts: 1.2 billion sq ft produced for homes 2023
13
Vinyl siding market share: 35% of new home exteriors in 2023
14
Brick usage declined to 800 million units in new homes 2023
15
Spray foam insulation volume: 500 million board ft in residential 2023
16
Solar panels installed on new homes: 150,000 systems in 2023
17
EV charger installations in garages: 80,000 in new builds 2023
18
Recycled content in materials: 25% average in new homes 2023
19
Lumber import volume: 28 billion board feet in 2023, mostly Canada
20
Steel framing usage: 5% of single-family market in 2023
21
Modular home factory production: 120,000 units using prefab materials 2023
22
PEX piping replaced copper in 60% of new homes 2023
23
Quartz countertops: 70% market share in kitchens 2023
24
LED lighting fixtures: 95% of new installs in 2023
25
Low-E glass standard in 85% windows 2023
26
Hardie plank fiber cement siding: 25% share in 2023
Interpretation
Material Usage and Prices Interpretation
The industry seems to be hammering together a remarkably modern, efficient, and tech-integrated American home, though it appears we have collectively decided to build it almost entirely without bricks.
Reference
Cite This Report
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APA
Nathan Caldwell. (2026, February 13). House Building Industry Statistics. Gitnux. https://gitnux.org/house-building-industry-statistics
MLA
Nathan Caldwell. "House Building Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/house-building-industry-statistics.
Chicago
Nathan Caldwell. 2026. "House Building Industry Statistics." Gitnux. https://gitnux.org/house-building-industry-statistics.
Sources & references
39 datasets cited across this report · attribution is report-level