In 2024, 6.9% of new single-family detached homes were teardowns (structures torn down and rebuilt in older neighborhoods), and another 20.1% were built on infill lots in older neighborhoods, according to the latest Builder Practices Survey (BPS) conducted by Home Innovation Research Labs.
At the 2025 Fall Leadership Meeting, the NAHB Board of Directors approved the Legal Action Committee’s recommendation to award Legal Action Fund assistance grants in support of eight cases spanning three key industry issues.
Keep an eye on your inboxes this week for an important invitation from NAHB to complete our 2025 Builder and Associate Member Census.
Single-family construction lending picked up in the third quarter, amidst the overall cooling lending environment. Loan balances for 1-4 family construction grew to $91.2 billion in the third quarter, registering the first annual increase in over two years. However, across all acquisition, development and construction (AD&C) loans, the total volume fell for the seventh straight quarter. According to data from the Federal Deposit Insurance Corporation (FDIC), the total level of outstanding AD&C loans fell to $463.0 billion in the third quarter of 2025, down 5.6% from one year ago. This year-over-year decrease was led by a drop in other real estate development loans, which decreased 7% over the year to $371.8 billion. Meanwhile, the volume of 1-4 family residential construction and land development loans rose to $91.2 billion in the third quarter, up 0.5% from one year ago. It is worth noting, the FDIC data represent only the stock of loans, not changes in the underlying flows, so it is an imperfect data source. Nonetheless, lending remains much reduced from years past. The current amount of existing 1-4 family residential AD&C loans now stands 56% lower than the peak level of residential construction lending of $204 billion reached during the first quarter of 2008. Alternative sources of financing, including equity partners, have supplemented this capital market in recent years. Quality Metrics of Construction Loans While the total volume of 1-4 family residential construction loans rose, the volume of loans 30+ days past due or nonaccrual status fell slightly to $1.1 billion over the quarter. As a share of the total 1-4 family residential construction loan volume, this accounts for 1.2%. Breaking this out further, the level of loans 30-89 days past due was $418.1 million, while the volume in nonaccrual status was $593.4 million. The nonaccrual loan status volume increased from $572.4 million in the second quarter and the 30-89 past due fell from $469.2 million. Loans are classified as nonaccrual when one or more of the following conditions apply: the loan is 90 days or more past due on principal or interest (unless it is well-secured and in the process of collection); the bank no longer expects full repayment of principal and interest; or the borrower’s financial condition has significantly deteriorated, warranting cash-basis accounting.
Remodelers constitute for nearly one quarter of NAHB’s membership, so the 2026 NAHB International Builders’ Show® (IBS) will have plenty for those seeking to improve their remodeling practices and businesses. Here are four IBS Education sessions tailored for attendees interested in remodeling, all taking place this February.
In 2024, 6.9% of new single-family detached homes were teardowns (structures torn down and rebuilt in older neighborhoods), and another 20.1% were built on infill lots in older neighborhoods, according to the latest Builder Practices Survey (BPS) conducted by Home Innovation Research Labs. The BPS places new homes in one of four development categories. In addition to teardown and infill, the categories include “new residential development” and ”not in a residential development.” Homes built in a new residential development (i.e., subdivisions) are by far the most common type. There is a moderate amount of geographic variation in the teardown share. At the high end, over one in ten single-family homes were built on a lot where a structure had to be torn down in three of the nine Census Divisions: 15.0% in New England, 13.2% in the Pacific, and 10.1% in the East South Central. At the low end, the teardown share was only 4.8% in the South Atlantic. Nationally, homes built in older neighborhoods, but without tearing down another structure first, were nearly three times as common as teardowns. Again, however, there is geographic variation. Infill development accounted for over 30% of single-family homes in New England (38.0%) and the Middle Atlantic states (32.4%) but accounted for under 10% in the West South Central (9.7%) and Mountain (9.3%) divisions.
The average annual residential property tax bill for the 87 million owner-occupied homes in the U.S. was $4,271 in 2024, up about 4% from 2023, according to NAHB Economics team analysis of the 2024 American Community Survey.