The 2020 Survey of Construction (SOC) revealed that it took 10 days less to finish a home from authorization to completion in 2020 than in 2019. The survey also shows that the average completion time of a single-family house is around 7.8 months, which usually includes a little over a month from authorization to start and another 6.8 months to finish the construction. Good news for the housing market as inventory has been very low the past year.
Depending on the function of the new construction single-family homes the time it takes to complete varies. For a house built for sale, it took the shortest amount of time which was 6.9 months from permits to completion. A new construction home built by owners took around 13 months and a home built for rent took around 10.6 months. New construction homes built by a hired contractor only took 9.7 months from permits to completion.
Time also varies by region. The region with the longest time tied with Middle Atlantic and New England at 11.6 months while the shortest was the South Atlantic division with an average of 7.8 months. The remaining regions include the Pacific at 10 months and East South Central at 9.1 months.
Hopefully, with the shorter construction times, there will be more inventory for homebuyers. If you are in the market for a new home, choose a Realtor to help you with the process.
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