What’s the Average Profit Margin for Single-Family Builders?

Filed in Economics by on March 25, 2016 8 Comments

moneyhousecsawIndustry benchmarks on profit margins, asset levels, and equity positions are important because they allow businesses to compare their performance to their peers, and that can be extremely helpful in identifying areas for improvement and increasing efficiencies.

This is the reason NAHB periodically conducts a survey asking single-family builders nationwide to (confidentially) provide us their income statements and balance sheets. See the complete results in the recently released Cost of Doing Business Study: 2016 Edition.

“The Cost of Doing Business Study contains a wealth of information about the residential construction industry and is a critical resource for builders,” said NAHB Chairman Ed Brady.

Readers can see how they measure up against industry-wide averages in areas including:

  • Gross margin and net profit
  • Cost of goods sold
  • Operating expenses
  • Financial ratios

In an analysis in this Eye on Housing blog post, NAHB Economist Rose Quint breaks down the numbers, which show that builders’ profit margins continue to increase, but have yet to reach 2006 levels.

The Cost of Doing Business Study is available for purchase ($149.95 retail/$79.55 for NAHB members) at BuilderBooks.com or by calling 800-223-2665. The eBook is available at ebooks.builderbooks.com ($89.99 retail/$55.99 for NAHB members).

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  1. Tim Beckett says:

    Thanks for the tease!

  2. Matt says:

    What a crock…you have to buy it? What are we paying membership dues for?

    • Eric says:

      Agree..,if they are helping us, the price should be zero. We pay doc their research, after we pay their salaries to do the research. It does not add up.

  3. Doc says:

    Really is there anything free today, especially from the NAHB. Might be reason our numbers decline in our area.
    Rates go up and less is done for us.

  4. The disparaging comments about these publications costing something miss the mark. NAHB publications are excellent and useful and they add to my bottom line. The price of the publications can’t begin to pay the cost of developing the materials. While our dues prime the pump, the value of NAHB extends way beyond our dues and the cost of these books. Every member benefits, despite having to pay the (rather small) cost of the books. It is the fact that we have a staff there ready to assist us in developing our businesses. Those people, in addition to producing these useful materials, are there to help every member. Instead of casting about disparaging remarks, these guys should explore the website, go to some educational programming and get familiar with the resources of NAHB, as well as their state and local organizations. They are leaving money on the table.

  5. Drew says:

    I can’t say for this report for sure. But many reports are free to those who take the time to participate in the studies and provide thier information. Our association at all levels takes a lot of time from volunteers to keep it running and relevent on top of the dues payment. Anyone who is just paying dues and expects the organization to be providing all kinds of free stuff isn’t getting the value of membership to start with.

  6. jason says:

    I fill out the cost of doing business survey every month, I don’t get anything for doing this , so the least they could do is let us have this information for free being that we also pay the dues, this is the last time I fill out there survey

    • NAHB Now says:

      Jason, we passed along your name to our Business Management folks, because people who complete the survey are supposed to receive a copy. We’ll be in touch!

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