NAHB’s New Study Provides Statistics and Data on Builder Financial Performance
BuilderBooks, the publishing arm of the National Association of Home Builders (NAHB), recently released The Cost of Doing Business Study, 2025 Edition which offers valuable insights needed to evaluate operations, streamline processes and enhance profitability.
“Success in the building industry is not just about constructing homes—it’s about building a financially sound and efficient business,” said NAHB Chairman Buddy Hughes, a home builder and developer from Lexington, N.C. “This new title offers the resources and data that industry professionals need to understand to help benchmark their business and put them on the road to success.”
The 2025 edition of The Cost of Doing Business Study reveals significant trends in the financial performance of builders:
On average, single-family builders reported higher gross and net profit margins in 2023 than in 2020. Their average 8.7% net profit margin was the highest in more than three decades and second only to the series peak of 10% in 1991.
- The average gross profit margin increased from 18.2% in 2020 to 20.7% in 2023.
- The average net profit margin rose from 7.0% to 8.7% during this period.
This one-of-a-kind resource discusses financial performance according to builder type and size, as well as industry-wide averages using these key indicators:
- Gross margins
- Net profit
- Cost of sales
- Operating expenses
- Financial ratios
Builders can use this valuable resource to benchmark their performance, identify areas for improvement, and set a course for long-term success.
The Cost of Doing Business Study, 2025 Edition is available at www.BuilderBooks.com. Soft-cover/110 pages, $149.95 retail, $79.95 NAHB member, ISBN 978-0-86718-8233.
[Editor’s Note: Editors who are interested in receiving a complimentary copy of The Cost of Doing Business Study, 2025 Edition to review for their publications should contact Patricia Potts at [email protected]].