By Robert Dietz

NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates that the number of 2016 custom home building starts (homes built on an owner’s land, with either the owner or a builder acting as the general contractor) set a post-recession high for an annual total.

There were 41,000 total custom starts for the final quarter of the year. Over the course of 2016, there were 169,000 total custom single-family home starts, an increase of almost 8% over the 2015 total. Note that this definition of custom home building does not include homes intended for sale, so the analysis uses a narrow definition of the sector.

As measured on a one-year moving average, the market share of custom home building in terms of total single-family starts is now 21.5%, down from a cycle high of 31.5% set during the second quarter of 2009.