According to the NAHB, new figures from its census highlight the enduring role of small businesses in the residential construction industry. Most builder members continue to operate on a modest scale amid a housing industry facing affordability challenges, labor shortages and material cost volatility, NAHB reports.
The census shows the median number of housing starts by builder members in 2024 was six — a number that has remained constant since 2021. These builder members include single-family and multifamily home builders, commercial and residential remodelers, commercial builders, land developers, and modular or panelized home manufacturers.
However, the census found that a wide range of production levels exist within the builder segment.
Revenue data also underscores the small-business nature of most NAHB builders. The median builder brought in $3.7 million in 2024, an 8% increase over 2023. Despite the growth, 60% of builder members reported earning less than $5 million for the year. The largest segment (35%) reported revenue between $1 million and $4.9 million. Only 16% exceeded $15 million in total revenue.
The U.S. Small Business Administration currently defines residential builders and remodelers as small businesses if they generate less than $45 million in average annual receipts or $34 million for land developers. By that measure, nearly all NAHB builder members meet the threshold.
Employee data further reflect the lean operating structure of many builders. The median number of employees among builder members in 2024 was six, unchanged from the previous year. NAHB officials note that many builders rely heavily on subcontractors, which allows them to remain flexible while keeping direct payroll costs low.
The full census findings, including category-specific profiles for seven distinct types of builders, are available in the August 2025 special study.
— Originally posted by NAHB.
