Builder optimism climbed back to 50 on the NAHB index. Prospective buyer traffic remained at 27. Data on starts, prices, labor shortages, and material costs show where residential construction advanced and where constraints persisted.
Key Takeaways
- NAHB/Wells Fargo Housing Market Index at 44 in Jan 2024, down from 47 in Dec 2023.
- Median sales price of new homes sold in 2023 was $417,700, up 4.8% from 2022.
- In 2023, U.S. single-family housing starts totaled 1.01 million units, up 6.5% from 2022.
- Residential construction employment totaled 3.92 million jobs in 2023 peak.
- The U.S. residential homebuilding industry generated $1.05 trillion in revenue in 2023, up 4.8% from $1.002 trillion in 2022.
- Lumber prices surged 15% YoY to $550 per thousand board feet in Q3 2023.
Residential homebuilding activity remained resilient despite ongoing material and labor cost pressures.
Related reading
01 · Category
Builder Confidence and Forecasts25 stats
01
NAHB/Wells Fargo Housing Market Index at 44 in Jan 2024, down from 47 in Dec 2023.
02
68% builders reported sales conditions good or very good in Q4 2023.
03
Traffic of prospective buyers index 27 in Jan 2024.
04
Current sales index 52, future sales 56 in Feb 2024 HMI.
05
81% builders cut prices in Jan 2024 survey.
06
NAHB forecast: single-family starts 990,000 in 2024.
07
Builder optimism highest since 2022 at 50 in Mar 2024.
08
49% builders say material costs biggest issue in 2023.
09
Inventory for sale index 70 in Q1 2024.
10
Six-month sales expectations index 65 in 2023 avg.
11
92% builders concerned about regulations in 2023.
12
Builder price cut average 5% of home price in 2023.
13
HMI components: price 25, time to build 35 in Jan 2024.
14
Forecast new home sales 670,000 in 2024 per NAHB.
15
73% builders using incentives to boost sales 2023.
16
Builder confidence in traffic pace 25 lowest since 2012.
17
NAHB predicts mortgage rates 6.7% average 2024.
18
56% builders report labor shortages hurting confidence 2023.
19
HMI regional: South 48, West 40 in Q1 2024.
20
Builder forecast home price growth 2% in 2024.
21
40% builders expect market improvement next 6 months Q1 2024.
22
Sales-to-month inventory ratio 3.2 months for new homes 2023.
23
Builder sentiment on lots availability index 55 in 2023.
24
NAHB/WF HMI averaged 42 in 2023 lowest in decade.
25
65% builders optimistic on economy short-term 2024 survey.
Interpretation
Builder 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.
02 · Category
Home Prices and Affordability24 stats
01
Median sales price of new homes sold in 2023 was $417,700,up 4.8% from 2022.
02
Average sales price for new single-family homes reached $492,300in Q4 2023.
03
Existing home median sales price $389,800in 2023, up 2.6% YoY.
04
New home prices in South region averaged $405,000in 2023.
05
Housing affordability index fell to 98.1 in 2023 from 102.5 in 2022.
06
Monthly mortgage payment for median new home $2,350in Dec 2023 at 6.8% rate.
07
Home price-to-income ratio reached 5.5 in 2023, highest since 2006.
08
New home inventory at 8.3 months supply end-2023.
09
Builder incentives covered 5.2% of new home prices in 2023.
10
Median lot value for new homes $70,000in 2023.
11
Price per square foot for new homes $162in 2023.
12
Existing single-family home prices up 4.2% in top 50 markets 2023.
13
Affordability for first-time buyers at 28% of households in 2023.
14
New home sales price index increased 5.1% in 2023.
15
Luxury new homes ($1M+) sales up 10% to 45,000 units in 2023.
16
Rent for new multifamily units averaged $1,800/month in 2023.
17
Home price growth slowed to 3.8% in 2023 from 10% in 2022.
18
Median new home size 2,235 sq ft, price $150/sq ft in West 2023.
19
FHA loan affordability index 92 in 2023.
20
Price of starter homes ($200k-$300k) up 6% in 2023.
21
New home buyer income median $126,000in 2023.
22
30-year mortgage rate averaged 6.8% impacting affordability by 25% in 2023.
23
Case-Shiller home price index up 5.7% YoY Dec 2023.
24
New home discounts averaged 4.5% off list price in 2023.
Interpretation
Home 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.
03 · Category
Housing Starts and Completions26 stats
01
In 2023, U.S. single-family housing starts totaled 1.01 million units, up 6.5% from 2022.
02
Multifamily housing starts reached 440,000 units in 2023, a 28% increase YoY.
03
Building permits for new single-family homes issued: 925,000 in 2023.
04
Total housing starts (single + multi) averaged 1.41 million annualized in Q4 2023.
05
Single-family completions: 950,000 units in 2023.
06
Midwest region single-family starts: 145,000 units in 2023.
07
South region led with 550,000 single-family starts in 2023.
08
Northeast multifamily permits: 85,000 units in 2023.
09
West region total starts: 280,000 units in 2023.
10
Housing permits total 1.42 million units in 2023.
11
Single-family under construction: 630,000 units end-2023.
12
Multifamily completions: 380,000 units in 2023.
13
Permits for single-family detached: 580,000 in Q1 2024.
14
Total new residential construction starts down 2.1% in 2023 from peak.
15
Florida single-family starts: 120,000 units in 2023.
16
Texas multifamily starts: 95,000 units in 2023.
17
Housing starts seasonally adjusted annual rate 1.46 million in Jan 2024.
18
Single-family permits in urban areas: 650,000 in 2023.
19
Completions for 2-4 unit structures: 25,000 in 2023.
20
5+ unit starts: 420,000 units in 2023.
21
Single-family starts in suburban areas up 8% to 720,000 in 2023.
22
Total completions 1.42 million units in 2023.
23
Building permits revised down to 1.40 million for 2023 full year.
24
Single-family housing starts forecast 980,000 for 2024.
25
Multifamily permits peaked at 500,000 annualized in mid-2023.
26
New single-family houses sold: 668,000 in 2023.
Interpretation
Housing 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.
More related reading
04 · Category
Labor Force and Employment26 stats
01
Residential construction employment totaled 3.92 million jobs in 2023 peak.
02
Homebuilder labor shortage affected 87% of builders in 2023 survey.
03
Average hourly wage for residential carpenters $28.50in 2023.
04
Construction laborers in homebuilding: 1.1 million employed 2023.
05
NAHB/WF survey: 59% builders short skilled trades in 2023.
06
Residential framing contractors employment 280,000 in 2023.
07
Labor cost as % of total build cost rose to 28% in 2023.
08
Unfilled job openings in construction 382,000 average 2023.
09
Median tenure for construction supervisors 4.2 years in 2023.
10
Women in residential construction workforce 10.9% in 2023.
11
Overtime hours in construction averaged 3.8 per week 2023.
12
Union membership in construction 12.6% in 2023.
13
Entry-level construction helper wage $18.75/hour 2023.
14
25% builders delayed projects due to labor shortages in 2023.
15
Electricians in homebuilding: 180,000 employed 2023.
16
Plumbers wage averaged $31.20/hour in residential 2023.
17
Construction manager salaries median $104,000in 2023.
18
Job growth in residential building +2.1% or 80,000 jobs 2023.
19
Turnover rate in construction trades 25% annual 2023.
20
Hispanic workers 30% of residential construction workforce 2023.
21
Apprenticeship programs enrolled 50,000 new in construction 2023.
22
Labor productivity in residential construction down 1.2% 2023.
23
Roofers employment 110,000, wage $24.60/hour 2023.
24
72% builders hiring more rough carpenters needed 2023.
25
Drywall installers shortage reported by 81% builders 2023.
26
Construction unemployment rate 4.0% average 2023.
Interpretation
Labor 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.
05 · Category
Market Size and Revenue30 stats
01
The U.S. residential homebuilding industry generated $1.05 trillion in revenue in 2023, up 4.8% from $1.002 trillion in 2022.
02
Single-family homebuilding accounted for 72% of total residential construction spending in 2023, totaling $758 billion.
03
Multifamily residential construction spending reached $145 billion in Q4 2023, a 12% year-over-year increase.
04
The top 200 U.S. homebuilders had combined revenues of $250 billion in 2022.
05
Residential construction contributed 4.1% to U.S. GDP in 2023, equating to $1.12 trillion at current prices.
06
New home sales market value hit $400 billion in 2023 based on median price of $417,700.
07
Custom homebuilding segment grew 6.2% to $85 billion in revenue during 2023.
08
Production homebuilding revenue for top builders like D.R. Horton reached $35.5 billion in fiscal 2023.
09
Remodeling segment of residential construction added $450 billion to industry revenue in 2023.
10
U.S. residential building permits valued at $120 billion in 2023.
11
Lennar Corporation reported $34.2 billion in homebuilding revenue for 2023.
12
PulteGroup's homebuilding revenues increased 11% to $15.3 billion in 2023.
13
Total residential fixed investment was $1.8 trillion in 2023 per BEA data.
14
Single-family detached homes represented 65% of new residential construction value at $680 billion in 2023.
15
Industry market share of top 10 builders was 28% with $280 billion combined revenue in 2023.
16
Forecasted residential construction market to reach $1.3 trillion by 2027, CAGR 4.5%.
17
Modular homebuilding revenue grew to $12 billion in 2023, up 15%.
18
Toll Brothers luxury homebuilding revenue hit $9.3 billion in fiscal 2023.
19
NVR Inc. homebuilding revenue was $9.1 billion in 2023.
20
Taylor Morrison reported $7.3 billion in homebuilding revenue for 2023.
21
Residential construction employment supported $900 billion in economic output in 2023.
22
New single-family houses under construction valued at $250 billion end of 2023.
23
Multifamily rental construction spending $110 billion in 2023.
24
U.S. homebuilding industry's profit margin averaged 12.5% in 2023.
25
KB Home revenue from homebuilding operations $6.1 billion in 2023.
26
Total value of residential building put in place $1.1 trillion in 2023.
27
Green homebuilding segment revenue $50 billion in 2023.
28
Skyline Champion modular homes revenue $2.3 billion in fiscal 2023.
29
U.S. residential construction market projected $1.4 trillion by 2028.
30
Top 100 builders' revenue share 22% of total market at $220 billion in 2023.
Interpretation
Market 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.
06 · Category
Material Costs and Supply Chain25 stats
01
Lumber prices surged 15% YoY to $550 per thousand board feet in Q3 2023.
02
Softwood lumber import volume 35 million cubic meters in 2023.
03
Steel rebar costs up 22% to $1,200/ton in 2023.
04
OSB prices averaged $450per 7/16" sheet in 2023.
05
Cement prices increased 8.5% to $135/ton in 2023.
06
Residential builders material cost index up 5.2% in 2023.
07
Asphalt shingle prices rose 12% to $125/square in 2023.
08
Copper wire costs for electrical up 10% to $4.50/lb 2023.
09
Vinyl siding prices $5.50/sq ft average 2023.
10
Appliance costs for builders up 7% to $12,000/home in 2023.
11
Plywood prices fluctuated, ending 2023 at $650/thousand sq ft.
12
HVAC equipment costs increased 9.3% to $8,500/unit 2023.
13
Windows and doors material costs up 11% to $15,000/home 2023.
14
Drywall prices $0.45/sq ft in 2023.
15
Insulation material costs rose 6% to $1.20/sq ft 2023.
16
Ready-mix concrete $160/cubic yard average 2023.
17
Supply chain delays affected 45% of builders for appliances 2023.
18
Lumber tariffs added $1,200per home cost in 2023.
19
Fiberglass shingle prices $110/square in 2023.
20
Electrical conduit PVC $2.10/ft up 14% 2023.
21
Cabinetry costs for kitchens $18,000average per home 2023.
22
Tile flooring $6.50/sq ft in 2023.
23
Paint and coatings up 4% to $45/gallon 2023.
24
Plumbing fixtures $4,200/home increase 8% 2023.
25
Material costs share of build cost 45% in 2023.
Interpretation
Material 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.
Reference
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APA
Stefan Wendt. (2026, February 13). Residential Homebuilding Industry Statistics. Gitnux. https://gitnux.org/residential-homebuilding-industry-statistics
MLA
Stefan Wendt. "Residential Homebuilding Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/residential-homebuilding-industry-statistics.
Chicago
Stefan Wendt. 2026. "Residential Homebuilding Industry Statistics." Gitnux. https://gitnux.org/residential-homebuilding-industry-statistics.
Sources & references
48 datasets cited across this report · attribution is report-level