How Long Does It Take to Build a House?

The 2012 Survey of Construction (SOC) from the Census Bureau shows that on average it takes about 7 months from obtaining a building permit to completing a new single-family home. Looking at the houses completed in 2012, houses built for sale, on average, register the shortest time from permits to completion – between 5 and 6 months. Houses built on owner’s land take longer – about 8 months if built by a contractor and more than 11 months if they are owner-built (i.e., where the owner of the land serves as a general contractor). Single-family homes built for rent take, on average, between 8 and 9 months from permits to completion.

In most cases, no time is wasted from the moment a permit is obtained and construction is started. Most homes built for sale and on owners’ land are started prior or within the same month as authorization. Houses built for rent, on average, register a slight delay of one month before construction is started.

The time from permits to completion varies across the nine Census divisions. New England and Middle Atlantic register longer times of between 9 and 10 months. Pacific and East North Central division also show above average time of 8 months to completion. Builders in the East South Central Division manage to complete a home in 7 months, on average. The rest of the country registers times between 5 and 6 months.

time_to_build

For houses built for sale, the SOC also gathers information on sales, registered at the time when a buyer signs a sale agreement or makes a deposit on the home, not the final closing. For new single-family homes sold in 2012, the average time from completion to sale is under one month. However, this average is highly skewed by a relatively small number of homes that are not sold prior or while under construction. Looking at new single-family homes completed in 2012, more than three quarters of these properties were sold before or during the completion month, including 30 percent that were pre-sold (i.e., sold before being started).  Only 6 percent of homes completed in 2012 remain unsold as of the first quarter of 2013. So, for most new single family homes there is no additional lag from completion to sale.

About these ads

17 Responses to How Long Does It Take to Build a House?

  1. Sam says:

    Please make sure the contractor who builds your home back fills the dirt around your foundation properly. If not, you’ll have water/foundation problems very quickly. This is a really common problem that is very preventable.

  2. David P says:

    Here in the NYC metro area duplex’s are built in under 4 months. I just finished an entire upper floor ( add a level ) in under 7 weeks.
    The good thing is, our economy seems to be picking up steam. Permits are being issued from the feedback that I receive throughout New jersey building departments for remodeling projects throughout New Jersey in and around Bergen County NJ

  3. Reblogged this on Cheri Mulhare Realtor and commented:
    There are many beautiful homesites on the market. Let’s look for the perfect site for your new home.

  4. […] View this original post on the NAHB blog, Eye on Housing […]

  5. […] View this original post on the NAHB blog, Eye on Housing. […]

  6. Laura Longville says:

    Our new home was built in 10 months as we had a few unexpected set backs. We are very happy with our new home and learned a lot from the process,

  7. […] a previous post, we examined the average time it takes to build a single-family home (7 months). In a question posed on NAHB’s Facebook page, a reader asked for the comparable […]

  8. […] a previous post, we examined the average time it takes to build a single-family home (7 months). In a question posed on NAHB’s Facebook page, a reader asked for the comparable […]

  9. […] a previous post, we examined the average time it takes to build a single-family home (7 months). In a question posed on NAHB’s Facebook page, a reader asked for the comparable […]

  10. […] in either direction.  But during a strong sustained trend, the normal balance is disrupted as the time it takes to build a home may speed up or slow down.  In times like that, movement in the number of units under-construction […]

  11. […] either direction.  But during a strong sustained trend, the normal balance is disrupted as the time it takes to build a home may speed up or slow down.  In times like that, movement in the number of units […]

  12. […] in either direction.  But during a strong sustained trend, the normal balance is disrupted as the time it takes to build a home may speed up or slow down.  In times like that, movement in the number of units under-construction […]

  13. […] “How Long Does It Take to Build a House?” National Association of Home Builders’ Eye on Housing (October 2013) and REALTOR® Magazine […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 6,540 other followers

%d bloggers like this: