Despite weakened demand from prospective buyers and a drop in builder confidence, custom building posted strong gains throughout the third quarter of 2022. A total of 59,000 custom building starts were reported during Q3, a 5% increase compared to the third quarter of 2021, according to NAHB Eye on Housing.
Improved supply chains and deceleration in material price gains have led to a 9% gain over the last four quarters from the prior four-quarter total with an increase of 207,000 units.
After market share declines due to a rise in spec building, the market share for custom homes has increased post-covid. As measured on a one-year moving average, the market share of custom home building, in terms of total single-family starts, increased to 19%. This is down from a cycle high of 31.5% set during the second quarter of 2009. However, it is worth noting that this submarket tends to gain market share during periods of housing market weakness as it is relatively more stable with respect to demand and less interest-rate sensitive.
Advertisement
Related Stories
Custom Home Design
Explore the Desert Comfort Idea Home
Take a virtual walkthrough of the bright and airy living spaces inside the Desert Comfort Idea Home...
Custom Builder
Delaware Builder Is First Woman to Receive NAHB’s Custom Builder of the Year Award
Delaware-based Marnie Oursler, president of Marnie Custom Homes, was awarded Custom Builder of the Year for her achievements in housing innovation in the custom home market
NAHB
Get Connected at an IBS Central
From remodeling to multifamily, IBS Centrals are geared toward niche markets so you can connect with like-minded housing-industry pros