Single-family builders reported an average of $1 million net profit for their 2014 fiscal years according to the National Association of Home Builders’ Cost of Doing Business Study for 2016. Gross profit for the builders was $3.1 million (18% of the revenue). The numbers are the highest they have been since 2006, according to the NAHB. That year, gross profit margins reached 20.8% and net profit margins reached 7.7%. Profits dipped down in 2008, a year which yielded a 3.0% net loss for single-family builders, as a result of the downturn in the housing market. Nevertheless, the profits have been steadily climbing since 2010, though they have not yet reached the highs of 2006.
The NAHB will be hosting a free webinar about the Cost of Doing Business study on March 22. For more information, follow the link below.