Despite the persistent challenges of labor shortages and material price hikes, the U.S. residential homebuilding industry quietly constructed its way to a staggering $1.05 trillion in revenue in 2023, a testament to its resilience and foundational role in the American economy.
Key Takeaways
- The U.S. residential homebuilding industry generated $1.05 trillion in revenue in 2023, up 4.8% from $1.002 trillion in 2022.
- Single-family homebuilding accounted for 72% of total residential construction spending in 2023, totaling $758 billion.
- Multifamily residential construction spending reached $145 billion in Q4 2023, a 12% year-over-year increase.
- In 2023, U.S. single-family housing starts totaled 1.01 million units, up 6.5% from 2022.
- Multifamily housing starts reached 440,000 units in 2023, a 28% increase YoY.
- Building permits for new single-family homes issued: 925,000 in 2023.
- Median sales price of new homes sold in 2023 was $417,700, up 4.8% from 2022.
- Average sales price for new single-family homes reached $492,300 in Q4 2023.
- Existing home median sales price $389,800 in 2023, up 2.6% YoY.
- Residential construction employment totaled 3.92 million jobs in 2023 peak.
- Homebuilder labor shortage affected 87% of builders in 2023 survey.
- Average hourly wage for residential carpenters $28.50 in 2023.
- Lumber prices surged 15% YoY to $550 per thousand board feet in Q3 2023.
- Softwood lumber import volume 35 million cubic meters in 2023.
- Steel rebar costs up 22% to $1,200/ton in 2023.
The residential homebuilding industry grew significantly in 2023 despite persistent labor and affordability challenges.
Builder Confidence and Forecasts
1NAHB/Wells Fargo Housing Market Index at 44 in Jan 2024, down from 47 in Dec 2023.
Verified268% builders reported sales conditions good or very good in Q4 2023.
Verified3Traffic of prospective buyers index 27 in Jan 2024.
Verified4Current sales index 52, future sales 56 in Feb 2024 HMI.
Directional581% builders cut prices in Jan 2024 survey.
Single source6NAHB forecast: single-family starts 990,000 in 2024.
Verified7Builder optimism highest since 2022 at 50 in Mar 2024.
Verified849% builders say material costs biggest issue in 2023.
Verified9Inventory for sale index 70 in Q1 2024.
Directional10Six-month sales expectations index 65 in 2023 avg.
Single source1192% builders concerned about regulations in 2023.
Verified12Builder price cut average 5% of home price in 2023.
Verified13HMI components: price 25, time to build 35 in Jan 2024.
Verified14Forecast new home sales 670,000 in 2024 per NAHB.
Directional1573% builders using incentives to boost sales 2023.
Single source16Builder confidence in traffic pace 25 lowest since 2012.
Verified17NAHB predicts mortgage rates 6.7% average 2024.
Verified1856% builders report labor shortages hurting confidence 2023.
Verified19HMI regional: South 48, West 40 in Q1 2024.
Directional20Builder forecast home price growth 2% in 2024.
Single source2140% builders expect market improvement next 6 months Q1 2024.
Verified22Sales-to-month inventory ratio 3.2 months for new homes 2023.
Verified23Builder sentiment on lots availability index 55 in 2023.
Verified24NAHB/WF HMI averaged 42 in 2023 lowest in decade.
Directional2565% builders optimistic on economy short-term 2024 survey.
Single sourceBuilder Confidence and Forecasts Interpretation
Despite the rebound in builder optimism and a majority still reporting good sales, the market's pulse is faint, with traffic at historic lows and price cuts rampant, suggesting confidence is currently built more on necessity than robust demand.
Home Prices and Affordability
1Median sales price of new homes sold in 2023 was $417,700, up 4.8% from 2022.
Verified2Average sales price for new single-family homes reached $492,300 in Q4 2023.
Verified3Existing home median sales price $389,800 in 2023, up 2.6% YoY.
Verified4New home prices in South region averaged $405,000 in 2023.
Directional5Housing affordability index fell to 98.1 in 2023 from 102.5 in 2022.
Single source6Monthly mortgage payment for median new home $2,350 in Dec 2023 at 6.8% rate.
Verified7Home price-to-income ratio reached 5.5 in 2023, highest since 2006.
Verified8New home inventory at 8.3 months supply end-2023.
Verified9Builder incentives covered 5.2% of new home prices in 2023.
Directional10Median lot value for new homes $70,000 in 2023.
Single source11Price per square foot for new homes $162 in 2023.
Verified12Existing single-family home prices up 4.2% in top 50 markets 2023.
Verified13Affordability for first-time buyers at 28% of households in 2023.
Verified14New home sales price index increased 5.1% in 2023.
Directional15Luxury new homes ($1M+) sales up 10% to 45,000 units in 2023.
Single source16Rent for new multifamily units averaged $1,800/month in 2023.
Verified17Home price growth slowed to 3.8% in 2023 from 10% in 2022.
Verified18Median new home size 2,235 sq ft, price $150/sq ft in West 2023.
Verified19FHA loan affordability index 92 in 2023.
Directional20Price of starter homes ($200k-$300k) up 6% in 2023.
Single source21New home buyer income median $126,000 in 2023.
Verified2230-year mortgage rate averaged 6.8% impacting affordability by 25% in 2023.
Verified23Case-Shiller home price index up 5.7% YoY Dec 2023.
Verified24New home discounts averaged 4.5% off list price in 2023.
DirectionalHome Prices and Affordability Interpretation
Despite relentless builder incentives and a slight cooling of the "mania," the American dream of homeownership is increasingly reserved for those with a six-figure salary, a tolerance for towering mortgage payments, and a nostalgic view of 2006.
Housing Starts and Completions
1In 2023, U.S. single-family housing starts totaled 1.01 million units, up 6.5% from 2022.
Verified2Multifamily housing starts reached 440,000 units in 2023, a 28% increase YoY.
Verified3Building permits for new single-family homes issued: 925,000 in 2023.
Verified4Total housing starts (single + multi) averaged 1.41 million annualized in Q4 2023.
Directional5Single-family completions: 950,000 units in 2023.
Single source6Midwest region single-family starts: 145,000 units in 2023.
Verified7South region led with 550,000 single-family starts in 2023.
Verified8Northeast multifamily permits: 85,000 units in 2023.
Verified9West region total starts: 280,000 units in 2023.
Directional10Housing permits total 1.42 million units in 2023.
Single source11Single-family under construction: 630,000 units end-2023.
Verified12Multifamily completions: 380,000 units in 2023.
Verified13Permits for single-family detached: 580,000 in Q1 2024.
Verified14Total new residential construction starts down 2.1% in 2023 from peak.
Directional15Florida single-family starts: 120,000 units in 2023.
Single source16Texas multifamily starts: 95,000 units in 2023.
Verified17Housing starts seasonally adjusted annual rate 1.46 million in Jan 2024.
Verified18Single-family permits in urban areas: 650,000 in 2023.
Verified19Completions for 2-4 unit structures: 25,000 in 2023.
Directional205+ unit starts: 420,000 units in 2023.
Single source21Single-family starts in suburban areas up 8% to 720,000 in 2023.
Verified22Total completions 1.42 million units in 2023.
Verified23Building permits revised down to 1.40 million for 2023 full year.
Verified24Single-family housing starts forecast 980,000 for 2024.
Directional25Multifamily permits peaked at 500,000 annualized in mid-2023.
Single source26New single-family houses sold: 668,000 in 2023.
VerifiedHousing Starts and Completions Interpretation
While the South is busy building empires of single-family homes and apartments are popping up like enthusiastic mushrooms everywhere else, the overall housing market is cautiously climbing out of its hole, one carefully permitted brick at a time.
Labor Force and Employment
1Residential construction employment totaled 3.92 million jobs in 2023 peak.
Verified2Homebuilder labor shortage affected 87% of builders in 2023 survey.
Verified3Average hourly wage for residential carpenters $28.50 in 2023.
Verified4Construction laborers in homebuilding: 1.1 million employed 2023.
Directional5NAHB/WF survey: 59% builders short skilled trades in 2023.
Single source6Residential framing contractors employment 280,000 in 2023.
Verified7Labor cost as % of total build cost rose to 28% in 2023.
Verified8Unfilled job openings in construction 382,000 average 2023.
Verified9Median tenure for construction supervisors 4.2 years in 2023.
Directional10Women in residential construction workforce 10.9% in 2023.
Single source11Overtime hours in construction averaged 3.8 per week 2023.
Verified12Union membership in construction 12.6% in 2023.
Verified13Entry-level construction helper wage $18.75/hour 2023.
Verified1425% builders delayed projects due to labor shortages in 2023.
Directional15Electricians in homebuilding: 180,000 employed 2023.
Single source16Plumbers wage averaged $31.20/hour in residential 2023.
Verified17Construction manager salaries median $104,000 in 2023.
Verified18Job growth in residential building +2.1% or 80,000 jobs 2023.
Verified19Turnover rate in construction trades 25% annual 2023.
Directional20Hispanic workers 30% of residential construction workforce 2023.
Single source21Apprenticeship programs enrolled 50,000 new in construction 2023.
Verified22Labor productivity in residential construction down 1.2% 2023.
Verified23Roofers employment 110,000, wage $24.60/hour 2023.
Verified2472% builders hiring more rough carpenters needed 2023.
Directional25Drywall installers shortage reported by 81% builders 2023.
Single source26Construction unemployment rate 4.0% average 2023.
VerifiedLabor Force and Employment Interpretation
The industry may have built 3.92 million jobs and added 80,000 more, but with 87% of builders screaming for skilled help, 382,000 open seats, a quarter of projects stalled, and productivity slipping while labor costs chew up 28% of every build, it seems the only thing rising faster than a framer's $28.50 wage is the collective blood pressure of every supervisor with a median tenure of just over four years.
Market Size and Revenue
1The U.S. residential homebuilding industry generated $1.05 trillion in revenue in 2023, up 4.8% from $1.002 trillion in 2022.
Verified2Single-family homebuilding accounted for 72% of total residential construction spending in 2023, totaling $758 billion.
Verified3Multifamily residential construction spending reached $145 billion in Q4 2023, a 12% year-over-year increase.
Verified4The top 200 U.S. homebuilders had combined revenues of $250 billion in 2022.
Directional5Residential construction contributed 4.1% to U.S. GDP in 2023, equating to $1.12 trillion at current prices.
Single source6New home sales market value hit $400 billion in 2023 based on median price of $417,700.
Verified7Custom homebuilding segment grew 6.2% to $85 billion in revenue during 2023.
Verified8Production homebuilding revenue for top builders like D.R. Horton reached $35.5 billion in fiscal 2023.
Verified9Remodeling segment of residential construction added $450 billion to industry revenue in 2023.
Directional10U.S. residential building permits valued at $120 billion in 2023.
Single source11Lennar Corporation reported $34.2 billion in homebuilding revenue for 2023.
Verified12PulteGroup's homebuilding revenues increased 11% to $15.3 billion in 2023.
Verified13Total residential fixed investment was $1.8 trillion in 2023 per BEA data.
Verified14Single-family detached homes represented 65% of new residential construction value at $680 billion in 2023.
Directional15Industry market share of top 10 builders was 28% with $280 billion combined revenue in 2023.
Single source16Forecasted residential construction market to reach $1.3 trillion by 2027, CAGR 4.5%.
Verified17Modular homebuilding revenue grew to $12 billion in 2023, up 15%.
Verified18Toll Brothers luxury homebuilding revenue hit $9.3 billion in fiscal 2023.
Verified19NVR Inc. homebuilding revenue was $9.1 billion in 2023.
Directional20Taylor Morrison reported $7.3 billion in homebuilding revenue for 2023.
Single source21Residential construction employment supported $900 billion in economic output in 2023.
Verified22New single-family houses under construction valued at $250 billion end of 2023.
Verified23Multifamily rental construction spending $110 billion in 2023.
Verified24U.S. homebuilding industry's profit margin averaged 12.5% in 2023.
Directional25KB Home revenue from homebuilding operations $6.1 billion in 2023.
Single source26Total value of residential building put in place $1.1 trillion in 2023.
Verified27Green homebuilding segment revenue $50 billion in 2023.
Verified28Skyline Champion modular homes revenue $2.3 billion in fiscal 2023.
Verified29U.S. residential construction market projected $1.4 trillion by 2028.
Directional30Top 100 builders' revenue share 22% of total market at $220 billion in 2023.
Single sourceMarket Size and Revenue Interpretation
Despite a maze of billion-dollar statistics, the fundamental truth of American homebuilding remains both stark and witty: we are simultaneously building too few homes and spending far too much on the ones we do build.
Material Costs and Supply Chain
1Lumber prices surged 15% YoY to $550 per thousand board feet in Q3 2023.
Verified2Softwood lumber import volume 35 million cubic meters in 2023.
Verified3Steel rebar costs up 22% to $1,200/ton in 2023.
Verified4OSB prices averaged $450 per 7/16" sheet in 2023.
Directional5Cement prices increased 8.5% to $135/ton in 2023.
Single source6Residential builders material cost index up 5.2% in 2023.
Verified7Asphalt shingle prices rose 12% to $125/square in 2023.
Verified8Copper wire costs for electrical up 10% to $4.50/lb 2023.
Verified9Vinyl siding prices $5.50/sq ft average 2023.
Directional10Appliance costs for builders up 7% to $12,000/home in 2023.
Single source11Plywood prices fluctuated, ending 2023 at $650/thousand sq ft.
Verified12HVAC equipment costs increased 9.3% to $8,500/unit 2023.
Verified13Windows and doors material costs up 11% to $15,000/home 2023.
Verified14Drywall prices $0.45/sq ft in 2023.
Directional15Insulation material costs rose 6% to $1.20/sq ft 2023.
Single source16Ready-mix concrete $160/cubic yard average 2023.
Verified17Supply chain delays affected 45% of builders for appliances 2023.
Verified18Lumber tariffs added $1,200 per home cost in 2023.
Verified19Fiberglass shingle prices $110/square in 2023.
Directional20Electrical conduit PVC $2.10/ft up 14% 2023.
Single source21Cabinetry costs for kitchens $18,000 average per home 2023.
Verified22Tile flooring $6.50/sq ft in 2023.
Verified23Paint and coatings up 4% to $45/gallon 2023.
Verified24Plumbing fixtures $4,200/home increase 8% 2023.
Directional25Material costs share of build cost 45% in 2023.
Single sourceMaterial Costs and Supply Chain Interpretation
The relentless climb of material costs across the board—from lumber to light switches—paints a stark picture of a builder's budget being slowly but surely buried under a very expensive, tariff-laden, and supply-chain-delayed house.
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