Imagine breaking ground on a vibrant, ever-evolving industry where over 1.4 million new homes began construction last year alone, with single-family starts jumping over 7% as the South led a nationwide building boom even as builders navigated significant labor shortages and rising material costs.
Key Takeaways
- In 2023, total new privately-owned housing units started in the US were 1,414,000.
- Single-family housing starts in 2023 reached 981,000 units.
- Multifamily housing starts in 2023 were 413,000 units.
- Housing completions in 2023 totaled 1,428,000 units.
- Single-family completions 2023: 968,000.
- Multifamily completions 2023: 429,000.
- New single-family houses sold in 2023: 668,000 at annual rate.
- Median sales price of new homes in 2023: $417,700.
- Average sales price new homes 2023: $510,300.
- Average cost to build a new single-family home 2023: $428,870.
- Site work costs 2023: 6% of total ($25,687).
- Foundations cost 2023: 11% ($47,176).
- New construction employment averaged 822,000 in 2023.
- Construction unemployment rate 3.7% in 2023 average.
- Residential builders employment up 2.1% year-over-year Dec 2023.
US new home construction remained strong with over 1.4 million starts in 2023.
Completions
1Housing completions in 2023 totaled 1,428,000 units.
Verified2Single-family completions 2023: 968,000.
Verified3Multifamily completions 2023: 429,000.
Verified4Completions in Northeast 2023: 96,000.
Directional5Midwest completions 2023: 200,000.
Single sourceCompletions Interpretation
While we frantically built nearly a million new single-family homes last year, the spirit of community was apparently on a sabbatical, as the much-needed multifamily units showed up fashionably late and tragically outnumbered.
Costs
1Average cost to build a new single-family home 2023: $428,870.
Verified2Site work costs 2023: 6% of total ($25,687).
Verified3Foundations cost 2023: 11% ($47,176).
Verified4Framing costs 2023: 18% ($77,197).
Directional5Exterior finishes 2023: 9% ($38,599).
Single source6Distribution of construction costs for single-family homes Q4 2023.
Verified7Interior finishes 2023: 24% ($102,931).
Verified8Final steps 2023: 9% ($38,599).
Verified9Lot cost 2023: 19% ($81,474).
Directional10Builder profit/financing/overhead 2023: 5% ($21,432).
Single source11Median price per square foot for new homes 2023: $174.
Verified12Construction cost index for single-family homes up 4.2% in 2023.
Verified13Softwood lumber price index averaged $486 per thousand board feet in 2023.
Verified14Ready-mix concrete cost up 5.8% year-over-year Q4 2023.
Directional15Gypsum products cost increase 3.1% in 2023.
Single source16Insulation materials up 2.7% in 2023.
Verified17Tile costs rose 4.5% year-over-year.
Verified18Plumbing products up 3.9% in 2023.
Verified19Electrical products increase 2.8%.
Directional20HVAC equipment costs up 4.1% in 2023.
Single source21Appliances price index up 1.5%.
Verified22Windows/doors up 3.2% in 2023.
Verified23New single-family construction spending $239 billion in 2023.
Verified24Residential construction put in place up 1.2% in 2023.
Directional25Single-family spending $190 billion annually 2023.
Single source26Multifamily improvements $49 billion in 2023.
VerifiedCosts Interpretation
In 2023, building an American dream costs nearly half a million dollars, where the very ground it sits on demands a fifth of the price and the act of holding it all together costs more than the roof over your head.
Housing Starts
1In 2023, total new privately-owned housing units started in the US were 1,414,000.
Verified2Single-family housing starts in 2023 reached 981,000 units.
Verified3Multifamily housing starts in 2023 were 413,000 units.
Verified4Housing starts in the Northeast region totaled 98,000 units in 2023.
Directional5Midwest housing starts were 198,000 units in 2023.
Single source6Southern region saw 763,000 housing starts in 2023.
Verified7Western US housing starts numbered 355,000 in 2023.
Verified8Building permits for new housing units issued in 2023 totaled 1,460,000.
Verified9Single-family permits in 2023 were 956,000.
Directional10Multifamily permits reached 456,000 in 2023.
Single source11Housing starts increased 5.4% from December 2022 to December 2023.
Verified12Single-family starts rose 7.1% year-over-year in December 2023.
Verified13Multifamily starts declined 2.5% year-over-year in December 2023.
Verified14January 2024 housing starts were at a seasonally adjusted annual rate of 1,409,000.
Directional15February 2024 single-family starts hit 1,042,000 annual rate.
Single source16Permits in March 2024 were 1,518,000 annual rate.
Verified17Housing starts in Q1 2024 averaged 1,429,000 annual rate.
Verified182022 annual housing starts totaled 1,393,000 units.
Verified19Single-family starts in 2022 were 944,000.
Directional20Multifamily starts in 2022 numbered 436,000.
Single source21Northeast starts in 2022: 92,000 units.
Verified22Midwest 2022 starts: 191,000.
Verified23South 2022 starts: 753,000.
Verified24West 2022 starts: 357,000.
Directional25Permits 2022 total: 1,445,000.
Single source26December 2022 starts: 1,307,000 annual rate.
VerifiedHousing Starts Interpretation
America is cautiously building more roofs, especially single-family homes, as the South flexes its construction muscles while the apartment boom shows signs of taking a breather.
Labor
1New construction employment averaged 822,000 in 2023.
Verified2Construction unemployment rate 3.7% in 2023 average.
Verified3Residential builders employment up 2.1% year-over-year Dec 2023.
Verified441% of builders reported labor shortages in Q1 2024.
Directional5Framing crew shortages reported by 87% of builders.
Single source6Bricklayers/masons shortage 84%.
Verified7Carpenters shortage 89% of builders.
Verified8Electricians shortage 82%.
Verified9Plumbers shortage 81%.
Directional10Average hourly earnings construction workers $34.89 Dec 2023.
Single source11Labor costs share of total construction costs 26% in 2023.
Verified12Projected labor shortage 500,000 by 2024.
Verified1325% of construction workforce over 55 years old.
Verified14Entry-level carpenter wage $19.47/hour.
Directional15Foreman carpenter $28.95/hour.
Single source16Labor force participation rate construction 66.2% 2023.
Verified17Women in construction 11% of workforce.
Verified18Hispanic workers 30% of construction labor.
Verified19Apprenticeship programs needed: 234,000 new entrants annually.
Directional20Job openings in construction averaged 383,000 monthly 2023.
Single source21Quit rate in construction 2.8% monthly average.
VerifiedLabor Interpretation
The construction industry is booming, yet a severe, highly-skilled labor shortage is simultaneously driving up costs and threatening to leave new homes half-built.
Materials
1Lumber use in new single-family homes averaged 15,000 board feet per house 2023.
Verified2Softwood lumber consumption for residential construction 40 billion board feet annually.
Verified3Engineered wood products 60% of framing lumber.
Verified4Concrete use 1,200 cubic yards per 100 homes.
Directional5Steel framing 5% of single-family market.
Single source6Asphalt shingles 85% roofing material.
Verified7Vinyl siding 40% exterior.
Verified8Fiber cement siding 25%.
Verified9Drywall usage 7,500 sq ft per home.
Directional10Insulation R-value average walls R-15.
Single sourceMaterials Interpretation
While we're framing our futures with enough wood to make a forest blush and covering them in enough vinyl to wrap a small planet, it's comforting to know we're at least insulating our ambitions to a middling R-15 standard.
Regional
1Northeast new home starts per capita highest at 1.2 per 1,000 residents 2023.
Verified2South leads in total starts with 54% share in 2023.
Verified3Texas new home permits 2023: 170,000 units.
Verified4Florida starts 2023: 124,000 units.
Directional5California completions 2023: 85,000.
Single source6North Carolina sales 2023: 62,000 new homes.
Verified7Georgia permits 2023: 58,000.
Verified8Arizona new home construction up 15% in 2023.
Verified9Midwest starts share 14% in 2023.
Directional10West region multifamily boom: 35% of national multifamily starts.
Single source11Phoenix metro starts 2023: 45,000 units.
Verified12Dallas-Fort Worth permits: 52,000 in 2023.
Verified13Atlanta starts: 38,000.
Verified14Houston new homes: 47,000 starts.
Directional15Austin multifamily permits high at 25,000.
Single source16New York metro starts low: 12,000 single-family.
Verified17Seattle region costs highest median $750,000 new home.
Verified18Florida Sun Belt boom: 20% national sales share.
Verified19Midwest completions stable at 14% share.
Directional20Northeast permits down 5% in 2023.
Single sourceRegional Interpretation
The South is running away with the volume crown, the Northeast is building the most on a per-person basis but is losing steam, and while the West's costs are soaring, its apartment boom proves not everyone is chasing a white picket fence.
Sales
1New single-family houses sold in 2023: 668,000 at annual rate.
Verified2Median sales price of new homes in 2023: $417,700.
Verified3Average sales price new homes 2023: $510,300.
Verified4Months' supply of new homes for sale in 2023: 8.1 months.
Directional5Inventory of new homes for sale end of 2023: 285,000.
Single source6New home sales in South 2023: 463,000 annual rate.
Verified7West new home sales 2023: 139,000.
Verified8Northeast sales 2023: 39,000.
Verified9Midwest sales 2023: 77,000.
Directional10December 2023 new home sales: 664,000 annual rate.
Single source11January 2024 sales: 661,000 annual rate.
Verified12February 2024 median price: $411,200.
Verified132022 new home sales: 743,000.
Verified142022 median price: $436,800.
Directional15Average price 2022: $527,200.
Single source16Months' supply 2022: 8.5.
Verified17Inventory end 2022: 249,000.
Verified18South sales 2022: 490,000.
Verified19West sales 2022: 150,000.
Directional20Median lot size for new single-family homes 2023: 0.19 acres.
Single source21Average square footage new homes sold 2023: 2,299 sq ft.
Verified22Percent with 3 bedrooms 2023: 58%.
Verified23Percent with 2 or more garages 2023: 89%.
VerifiedSales Interpretation
The housing market appears to have settled into a strange but stable new normal, where aspiring buyers, armed with a sense of humor and a hefty budget, can now enjoy a historically high number of expensive, slightly smaller, mostly three-bedroom options with ample parking while they wait for interest rates to blink.
Sustainability
165% of new homes ENERGY STAR certified in 2023.
Verified224% of builders use advanced framing for efficiency.
Verified3Solar installations in new homes up 20% to 15% share.
Verified4EV charger readiness in 42% of new single-family homes.
Directional5Recycled content used in 78% of new homes.
Single source6Low-flow fixtures in 92% of new construction.
Verified7LED lighting standard in 95% new homes 2023.
Verified8High-efficiency HVAC in 85%.
Verified9Spray foam insulation up to 35% usage.
Directional10Drought-resistant landscaping 62%.
Single source11Net-zero ready homes 8% of new builds.
Verified12Passive house standards in 2% of projects.
Verified13Wood from sustainable forests 89%.
Verified14WaterSense labeled products 88%.
Directional15Cool roofs in 25% of new homes in hot climates.
Single source16Geothermal systems 3% adoption.
Verified17Rainwater harvesting 12%.
Verified18Permeable pavement 18%.
Verified19Native plants 55%.
Directional20ICC-700 National Green Building Standard used by 40% NAHB members.
Single sourceSustainability Interpretation
While the green home movement is gaining real traction with impressive adoption in areas like lighting and water fixtures, the industry still seems to be cautiously tip-toeing—rather than sprinting—toward the deeper systemic changes needed for true sustainability.