New Single-Family Housing Construction (except For-Sale Builders) — Business Survival Rate

An estimated 46% of new single-family housing construction (except for-sale builders) businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 14.5%.

46%
5-Year Survival Rate
+3.5%
Net Growth Rate
174,642
Total Firms
21,484
Annual Firm Deaths

Is New Single-Family Housing Construction a Good Business to Start?

With a 46% five-year survival rate, new single-family housing construction (except for-sale builders) is near the national average (~50%). This means roughly half of new entrants will still be operating after 5 years — typical business risk that rewards solid planning and execution.

The annual exit rate of 14.5% indicates moderate turnover. Success depends on differentiation, location, and operational efficiency rather than inherent industry advantages.

Entry vs. Exit Rates

Annual rate of new businesses opening versus existing businesses closing.

Entry Rate (new businesses)17.3%
Exit Rate (closures)14.5%

Net positive: more businesses opening than closing (+2.9 pp spread).

Job Creation & Destruction

20.8%
Job Creation Rate
17.3%
Job Destruction Rate
+3.5%
Net Job Growth

The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 923,609 workers across 174,642 firms.

Want to know how much new single-family housing construction (except for-sale builders) businesses actually make?

See full revenue benchmarks for New Single-Family Housing Construction (except For-Sale Builders) →

Frequently Asked Questions

What percentage of new single-family housing construction (except for-sale builders) businesses fail?
Approximately 54% of new single-family housing construction (except for-sale builders) businesses fail within their first 5 years. The annual closure rate is 14.5%, with 21,484 firms closing permanently in 2023.
Is the new single-family housing construction (except for-sale builders) industry growing or shrinking?
The new single-family housing construction (except for-sale builders) industry is currently growing with a net job creation rate of +3.5% per year. New businesses are entering at 17.3% while 14.5% close annually.

Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.