Custom-Home Starts Hold Steady in Q1, NAHB Finds

The housing market has been shaken by growing building costs and weakened demand from homebuyers, but despite this, the custom building sector has managed to remain stable.

According to a recent report from the National Association of Home Builders’ Eye On Housing blog, which cites data from the US Census Bureau, total custom building starts reached 34,000 in Q1 2025 - unchanged from the prior quarter.

Over the past four quarters, total custom-home starts reached 181,000 homes nationwide. This marks progress from Q4 2024, when the total stood at 177,000.

Custom home market share remains below previous peaks

However, the market share of custom home building has declined in recent years. Currently, custom homes account for approximately 18% of total single-family starts. The market share of custom-home starts peaked in 2009 at 31.5%, and at the beginning of 2023, it reached 21% of the total market.

How has custom market share shifted this past year?

Throughout 2024, custom home building share followed an upward trajectory. In Q2 2024, custom home starts saw a nearly 6% year-over-year increase. 

By Q4 2024, custom-home starts accounted for 18% of all single-family starts, a figure that remains consistent today.    

The steady pace of custom home starts in a pressured market signals resilience in the luxury sector. Builders who stay ahead of shifting client needs will be better positioned to turn that stability into sustained growth.