Due to ongoing supply-side challenges for builders, the average time to complete a single-family home was 12 days longer in 2021 than in 2020, according to a NAHB analysis of the Bureau’s 2021 construction survey. census. The average time to complete a house in 2021 was approximately 8.2 months, including approximately one month for permission to start and 7.1 months to complete construction.
Of all single-family homes completed in 2021, homes built for sale took the shortest time, 7.4 months from building permit to completion, while homes built by owners (custom builds) took the longest, 12.8 months. Houses built by hired contractors normally required about 10.5 months, and houses built for rent it took approximately 11.1 months from authorization to completion. Across all categories of single-family homes, the time to start permission took significantly longer in 2021. Custom-built homes built for sale or built by contractors on the owner’s lot took slightly longer. one month lag between the authorization and the start of construction. The time to start was even longer for housing built for rental (1.64 months), which normally started construction in the same month after obtaining building permits in the past.
The average time from authorization to completion also varies from division to division. The division with the longest duration was New England (11.9 months), followed by Mid-Atlantic (11.7 months), Pacific (9.6 months), South-Central (9 .5 months) in 2021, the Central Northeast (8.5 months), the West North Central (8.3 months) and the Mountain division (8.3 months).
As for single-family homes built for sale and completed in 2021, 32.5% were sold before construction began, 43.2% sold during construction, 12.7% sold during the month of completion and 9.8% sold after completion. The share of completed homes remaining unsold was 1.8%.