The latest data from the Census Bureau’s Survey of Construction (SOC) indicates the average completion time of a single-family house was 9.6 months in 2022, almost a month and a half longer than the average completion time in 2021. The NAHB says the increase in cycle time reflects supply-side challenges and skilled labor shortages.
Among all single-family houses completed in 2022, houses built for sale required the shortest amount of time, 8.9 months from obtaining building permits to completion, while houses built by owners (custom builds) required the longest time, 13.4 months. Homes built by hired contractors normally needed around 11.3 months, and homes built-for-rent took about 11.6 months from authorization to completion. The time from permit to start for homes built for sale and built by contractors took much longer in 2022 than in 2021. Between authorization and the start of construction, built for sale and built by contractors on owner’s land took 1.33 months and 1.28 months respectively.
The average time from authorization to completion also varies across divisions. The division with the longest duration was New England (12.6 months), followed by the Middle Atlantic (11.8 months), the Pacific (10.8 months), the East South Central (10.1 months) and East North Central (9.7 months) in 2022. These five divisions had average time from permit to completion exceeding the nation’s average (9.6 months).
The SOC also collects additional information for houses built for sale, including a sale date when buyers sign sale contracts or make a deposit. Looking at single-family homes built for sale and completed in 2022, 25.5% were sold before construction started, 43.9% sold while under construction, 13.9% sold during the month of completion, and 12.7 % sold after completion. The share of completed houses remaining unsold was 4%.
Read More
