Owner Builders Were Busy in 2011

Despite all the negatives still plaguing real estate and the job market, owner builders were still quite busy in 2011.  According to the 2011 census numbers, 49,000 single family homes were completed in the United States by owner builders (people acting as the general contractor for their new home).  So how does this compare to the last few years?  Which region in the U.S. had the highest percentage of owner builders?

 The U.S. Overall Numbers for Owner Builders

The numbers we looked at came from the New Privately Owned Housing Units Completed in the United States by Purpose and Design.  The table shows both starts and completions of single family homes.  We chose to focus our attention on the completions by owner builders, or as the Census Bureau refers to them, owner built one-family units.

Are you surprised that 49,000 people in the U.S. acted as the general contractor for their own new home build in 2011?  This represents 11 percent of the total new privately owned single family homes built last year.  Considering the real estate market, job outlook, and relative economy, we were somewhat surprised that so many Americans would take on a big project like this.  Perhaps they see the advantages that the current market has for owner builders.

The graph above depicts the number of new privately owned single family homes completed by owner builders in each region in the U.S. in 2011.  Source:  U.S. Census Bureau.

The graph above depicts the percentage of the total of new privately owned single family homes completed by region in the U.S. in 2011 by owner builders.  So, 16 percent of the privately owned new homes built in the midwest last year were built by owner builders.

 Advantages of Building Now

With the slowdown in residential construction, the best subcontractors are readily available.  From plumbers to carpenters, the bench is full of companies that are eager to get to work.  When residential construction was booming, these guys were tough to get as the demand was so high.  Now they are not only available, but many times they will work with you to bring the price down.

Land prices have dropped over the past several years along with the decline of the real estate market.  There are some great deals out there for both developed lots and raw, undeveloped land.  If you think you might want to build your dream home in the next several years, now is a great time to start looking for the lot.  If you are thinking about general contracting your own project, be sure to check out our money and time saving resources at the Armchair Builder ESTORE.

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