Custom home building grows in 2025
Analysis from the recent Census Data from the Quarterly Starts and Completions by Purpose and Design by The National Association of Home Builders (NAHB) reports year-over year growth for custom home building. This is success in a relatively unique market in 2025. Survey results show custom homebuilders made up an estimated 19% of total single-family starts.
The definition of custom homebuilding from the U.S. Census is to be noted. It does not currently include homes indented for sale but, construction undertaken on a contract basis where tax basis in the structure during construction. Despite these narrowing terms, custom homebuilding increased 6% compared to the third quarter of 2024.
“The custom building market is less sensitive to the interest rate cycle than other forms of home building but is more sensitive to changes in household wealth and stock prices,” said NAHB Chief Economist Robert Dietz. “With spec home building down and the stock market up, custom building is gaining market share.”
Graph Credit: NAHB
