Builder Business Grew Significantly in 2021

Economics
Published
Median Annual Revenue in 2021
Average Housing Starts in 2021

The business of the typical NAHB builder grew significantly between 2020 and 2021, according to results from NAHB’s latest member census. The 2021 NAHB census shows that the median gross revenue of an NAHB builder in 2021 was an all-time high of $3.3 million, up 26.9% from the previous year.

NAHB reinstated its member census during the industry-wide downturn of 2008, when median annual revenue of builder members was only around $1 million. Median annual revenue began rising in 2013, plateauing at $2.6 million to $2.7 million from 2017 through 2020.

Although their median revenue has increased recently, most NAHB builders remain relatively small businesses by conventional standards. According to the 2021 NAHB census:

  • 14% of NAHB’s builder members reported a dollar volume of less than $500,000,
  • 13% reported between $500,000 and $999,999,
  • 38% reported between $1 million and $4.9 million,
  • 15% reported between $5 million and $9.9 million,
  • 6% reported between $10 million and $14.9 million, and
  • 13% reported $15 million or more.

In comparison, the Small Business Administration's size standards classify most types of construction businesses as small if they have average annual receipts of less than $39.5 million.

Agreeing with the increase in builder revenue, there was a particularly strong surge in the average number of housing starts per builder between 2020 and 2021 from 41 in 2020 to 63.1. The average number of single-family starts grew by 58.2% (from 26.3 to 41.6), while the average number of multifamily starts increased by 46.3% (from 14.7 to 21.5).

This information was originally published in the August 2022 special study available on NAHB’s Housing Economics webpage. Paul Emrath, NAHB vice president for survey and housing policy research, provides additional insights in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics | Housing Affordability

Aug 21, 2025

New and Existing Homes Remain Largely Unaffordable in Second Quarter

While new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the NAHB/Wells Fargo Cost of Housing Index (CHI). The CHI results from the second quarter of 2025 show that a family earning the nation’s median income of $104,200 needed 36% of its income to cover the mortgage payment on a median-priced new home. Low-income families, defined as those earning only 50% of median income, would have to spend 71% of their earnings to pay for the same new home.

Economics

Aug 20, 2025

Custom Home Building Grows as Broader Housing Market Struggles

An analysis of census data by NAHB economists shows that custom home building grew 4% in the second quarter of 2025 as high interest rates and home prices suppress demand for traditional spec home production.

View all

Latest Economic News

Economics

Aug 21, 2025

Existing Home Sales Rise in July

Existing home sales rebounded in July as mortgage rates retreated from the recent peak and home price growth slowed, according to the National Association of Realtors (NAR).

Economics

Aug 21, 2025

New and Existing Homes Remain Largely Unaffordable in Second Quarter

While new homes remain largely unaffordable, builder efforts to improve housing affordability paid dividends in the second quarter of 2025, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).

Economics

Aug 20, 2025

Retreat for Single-Family Built-for-Rent Housing

Single-family built-for-rent construction fell back in the second quarter, as a higher cost of financing crowded out development activity.