The average completion time of a single-family house has increased nearly three months post-pandemic, according to an NAHB analysis of the Census Bureau’s Survey of Construction (SOC). The permit-to-completion time has been on an upward trend since 2015, rising to 10.1 months in 2023. As recently as 2020, the permit-to-completion time was 7.8 months.
The increase in cycle time is largely due to the stringent regulatory environment, supply-chain challenges, and the skilled labor shortage.
Among all single-family houses completed in 2023, homes built for sale required the shortest amount of time, 8.9 months from obtaining building permits to completion. Meanwhile, homes built by owners (custom builds) required the longest time, 15.2 months. Homes built by hired contractors took about 12.1 months, and homes built-for-rent took about 12.2 months from authorization to completion.
The time from permit to start for all types of homes was longer in 2023. The period of time necessary to start construction required, on average, 1.5 months in 2023. In contrast, prior to 2017 construction typically started within the same month after obtaining building authorization.
The smallest single-family homes, under 1,200 square feet, required 13 months to finish, relatively longer than larger homes under 5,000 square feet. This prolonged period is primarily because half of these smaller homes are constructed specifically for rental purposes, which typically takes longer building time from authorization. In contrast, homes ranging from1,200 to 3,999 square feet are built at the average building time, typically around 10 months.
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