New Single-Family Housing Construction (except For-Sale Builders) Revenue Benchmarks
The average new single-family housing construction (except for-sale builders) business in the United States generates $766K in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 57,797 new single-family housing construction (except for-sale builders) businesses in the U.S., employing 220,809 workers with an average profit margin of 7.0%. The average employee in this industry earns $78K per year (Bureau of Labor Statistics QCEW 2023).
What Does a New Single-Family Housing Construction Business Actually Do?
Homebuilders constructing single-family houses on land they own (spec build) or on land the customer owns (contract build). Include national builders (Lennar, DR Horton) and local custom builders.
Who buys: Home buyers (via sales rep or model home tours), landowners commissioning custom builds.
Average Revenue
$766K
per year
Profit Margin
7.0%
industry average
Revenue / Employee
$200K
per year
Total Businesses
57,797
in the US
Est. Owner Income
$54K
small business avg
Labor Cost
30.0%
of revenue
Avg Employee Wage
$78K
per year (BLS)
Market Saturation
17.4
firms per 100K people
How Much Do New Single-Family Housing Construction (except For-Sale Builders) Charge?
Homebuilders quote per square foot; most contract-build, some spec-build.
| Service | Typical range |
|---|---|
Production builder (basic) | $130–200/sqft |
Semi-custom | $200–350/sqft |
Custom home | $300–600+/sqft |
Land + build (typical suburban) | $400,000–1,500,000+ |
Builder gross margin | 15–22% |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete new single-family housing construction business plan
A 12-section data-backed business plan for a new single-family housing construction (except for-sale builders) business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the new single-family housing construction (except for-sale builders) industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Materials & subcontractors | $38 | $289K | Lumber, concrete, fixtures, subcontracted trades — the physical scope of the job. |
Wages & benefits | $30 | $230K | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $5 | $39K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $3 | $24K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $130K | Equipment rentals, insurance (very high in construction), permits, vehicles, fuel. |
Net profit | $7 | $54K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
17.34%
openings/year
Closure Rate
14.46%
closings/year
Net Job Growth
+3.48%
annual
Businesses Closed
21,484
in 2023
Firm Count Trend
Should You Start a New Single-Family Housing Construction Business?
Startup Cost
$50K – $250K
Break-Even
34 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a new single-family housing construction (except for-sale builders) business do?
- Homebuilders constructing single-family houses on land they own (spec build) or on land the customer owns (contract build). Include national builders (Lennar, DR Horton) and local custom builders. Home buyers (via sales rep or model home tours), landowners commissioning custom builds.
- How much do new single-family housing construction (except for-sale builders) charge?
- Homebuilders quote per square foot; most contract-build, some spec-build. See the pricing table above for typical rates by service type.
- How much does the average new single-family housing construction (except for-sale builders) make per year?
- The average new single-family housing construction (except for-sale builders) business generates $766K in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $54K per year at a 7.0% profit margin.
- How many new single-family housing construction (except for-sale builders) businesses are there in the US?
- There are 57,797 new single-family housing construction (except for-sale builders) businesses operating in the United States, employing a total of 220,809 workers.
- How much does it cost to start a new single-family housing construction (except for-sale builders) business?
- Startup costs for a new single-family housing construction (except for-sale builders) business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the new single-family housing construction (except for-sale builders) industry?
- The average employee in the new single-family housing construction (except for-sale builders) industry earns $78K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The new single-family housing construction (except for-sale builders) industry is actively growing — adding jobs at a net rate of 3.5% per year. New establishments are opening faster than existing ones close (17.3% entry vs 14.5% exit), indicating healthy demand.
Approximately 46% of new single-family housing construction (except for-sale builders) businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 21,484 firms in this industry closed permanently.
Employment & Wages
The average employee in the new single-family housing construction (except for-sale builders) industry earns $78,145/year. This is significantly above the national average of ~$65K, reflecting the skilled nature of this work. With 91,002 establishments employing 380,925 people, the typical business has about 4 employees. Most businesses in this industry are small operations — often owner-operated with minimal staff.
Industry Trend (2000–2023)
The new single-family housing construction (except for-sale builders) industry has grown 31% since 2000 (from 133,310 to 174,642 firms).
See full historical statistics →Compare New Single-Family Housing Construction (except For-Sale Builders) revenue with other industries: