New homes are built primarily by large developers that buy a track of land and put up dozens or hundreds of homes at a time.
Everyone knows that this type of building is now a thing of the past but individual custom homes also make up a large number of sales.
Custom homes are built on land that the buyer owns or contracts to buy in conjunction with the building of a one off home.
The home can be built from stock plans or it can be custom or designed from the ground up by the buyer.
Even when times are tough there are normally people that purchase custom homes. Often the homes are built by a General Contractor rather then a developer but sometimes the buyer will put in their own labor to reduce the cost. You will often see contractors build their own homes when times are tough and then either rent them after living in them a short time or sell them outright. Often contractors build on land that they get for rock bottom prices or have been holding on to in hopes to resell.
So, there are many factors that boost the custom home market in both good and bad times.
However a new set of numbers show that states that should have tens of thousands of new homes built are now showing none or very few.
When you have a market so abundant in foreclosed homes the idea of building goes out the window. At the very most you purchase a completed home that needs renovation to meet your needs and save the cost and trouble of permitting and labor.
Here is the list of the worst states
1 Rhode Island total permits 312
2 West Virginia total permits 775
3 Illinois total permits 4,600
4 Michigan total permits 4,250
5 Connecticut total permits 1,400
6 Ohio total permits 6,200
7 Massachusetts total permits 3,400
8 New York total permits 11,000
9 Maine total permits 1,000
10 Pennsylvania total permits 8,000
To better understand the list it is based on the number of homes, population and the normal number of permits issued.
Remember that just because a permit is issued does not mean a home has been completed.
Permits Issued also include those that are being renewed to allow the contractor to hold on to the job without a requirement of paying total start up costs which can range in the thousands of dollars.