NAICS 236117 Quarterly Industry Report
New Housing Operative Builders
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 236117Sector: Construction (23)Updated: Q1 2026
About This Report
This industry profile for New Housing For-Sale Builders (NAICS 236117) draws on data from the U.S. Census Bureau[6], Bureau of Labor Statistics[10], NAHB[11], and SBA size standards database[8]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, homebuilding industry analysts, and residential development investors with current market data. All quantitative claims are sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the new housing operative builders industry.
Industry Definition & Overview
New Housing For-Sale Builders (NAICS 236117) encompasses establishments primarily engaged in building new homes on land that is owned or controlled by the builder rather than the homebuyer or investor per the U.S. Census Bureau[5]. The land is included with the sale of the home. Often called merchant builders, production builders, or spec builders, these firms develop subdivisions and construct single-family and multifamily housing units for sale to end buyers. This classification captures the integrated land development and home construction model that distinguishes for-sale builders from custom contract builders.
Industry revenue reached $276.6 billion across new residential construction per Census Bureau[6] economic survey data, with for-sale builders representing the largest segment by dollar volume. D.R. Horton leads as the nation's largest homebuilder by volume, followed by Lennar Corporation, PulteGroup, NVR Inc., and Meritage Homes. KB Home, Taylor Morrison, and Toll Brothers maintain additional large-scale production building operations. Median new home sale price was $438,900 per Census Bureau[7] new residential sales data, with prices varying widely by market and product type.
Per the SBA Table of Size Standards[8], the size standard is $45 million in average annual receipts. For-sale builders must comply with state contractor licensing, local building codes, and subdivision regulations governing lot layout, infrastructure, and development impact fees. EPA stormwater discharge permits under the National Pollutant Discharge Elimination System (NPDES) apply to construction sites disturbing one or more acres. OSHA[9] construction safety standards govern all job sites. Interstate Land Sales Full Disclosure Act requires registration and disclosure for subdivisions of 100 or more lots sold across state lines. New home warranty obligations vary by state, with implied warranty of habitability applying in most jurisdictions and many builders offering explicit limited warranty programs covering workmanship, systems, and structural defects.
What's Included in This Industry
- Subdivision land development and lot preparation
- Production single-family home construction
- Spec home building on builder-owned lots
- Tract housing and planned community development
- For-sale condominium and townhome construction
- Model home construction and sales center operations
- Buyer selection and home customization management
- Infrastructure installation (streets, utilities, drainage)
- New home warranty administration and service
- Community amenity construction (pools, clubhouses, parks)
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Construction | 23 |
| Subsector | Construction of Buildings | 236 |
| Industry Group | Residential Building Construction | 2361 |
| NAICS Industry | Residential Building Construction | 23611 |
| National Industry | New Housing For-Sale Builders | 236117 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 236115 | New Single-Family Housing Construction (except For-Sale Builders) | New Single-Family Housing Construction covers custom builders working on owner-occupied land under contract, while for-sale builders in this classification own the land and sell completed homes, with both segments building identical product types but under different business models and financial risk structures |
| 236116 | New Multifamily Housing Construction (except For-Sale Builders) | New Multifamily Housing Construction builds apartments and condominiums under contract for developer clients, overlapping with for-sale builders who construct and sell multifamily units directly, with the ownership and sale structure distinguishing the two classifications |
| 236118 | Residential Remodelers | Residential Remodelers compete for homeowner improvement spending that represents an alternative to new home purchase, with remodeling activity often inversely correlated to new construction volume as homeowners choose between buying new and renovating existing properties |
| 237110 | Water and Sewer Line and Related Structures Construction | Water and Sewer Line and Related Structures Construction performs site infrastructure work that for-sale builders subcontract during subdivision development, with water main extension, sewer line installation, and stormwater system construction preceding vertical home building on prepared lots |
| 531110 | Lessors of Residential Buildings and Dwellings | Lessors of Residential Buildings compete for housing demand as the rental alternative to homeownership, with apartment vacancy rates and rental pricing influencing consumer decisions to purchase new homes from for-sale builders or continue renting existing housing stock |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 8.1% | 1,023 |
| 2 | California | 6.0% | 763 |
| 3 | Florida | 6.0% | 755 |
| 4 | North Carolina | 5.8% | 729 |
| 5 | Washington | 4.2% | 525 |
| 6 | Virginia | 4.0% | 500 |
| 7 | Georgia | 3.9% | 488 |
| 8 | Michigan | 3.2% | 398 |
| 9 | New York | 3.1% | 397 |
| 10 | Colorado | 2.9% | 370 |
% Of Establishments
0%
8%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
24
Total SBA Loans
$3.2M
Total Loan Volume
$133K
Average Loan Size
7 yrs
Average Loan Term
10.08%
Average Interest Rate
80
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[8], New Housing For-Sale Builders (NAICS 236117) has a size standard of $45 million in average annual receipts for federal contracting purposes. SBA lending programs[12] support land acquisition, construction financing, and business expansion for qualifying for-sale homebuilding firms. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Eastern Bank | 8 | $1.2M | $150K |
| 1 | Bank OZK | 8 | $1.2M | $150K |
| 3 | Santander Bank, National Association | 8 | $800K | $100K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for production homebuilders?
NAICS 236117 covers for-sale builders constructing homes on builder-owned land including spec builders, tract housing developers, and merchant builders per the U.S. Census Bureau[5].
What is the SBA size standard for for-sale builders?
The SBA size standard[8] is $45 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
Who are the largest homebuilders?
D.R. Horton leads as the nation's largest homebuilder by volume, followed by Lennar Corporation, PulteGroup, NVR Inc., and Meritage Homes per NAHB[11] industry data, with the top builders operating across multiple states and housing market segments.
What is the median new home price?
Median new home sale price was $438,900 per Census Bureau[7] new residential sales data, with prices varying widely by geographic market, lot size, square footage, and builder product positioning.
What environmental permits do subdivision developers need?
EPA stormwater discharge permits under the National Pollutant Discharge Elimination System apply to construction sites disturbing one or more acres per EPA[15] regulatory requirements, with stormwater pollution prevention plans and erosion control measures required throughout the land development and construction process.
What new home warranties are required?
Warranty obligations vary by state, with implied warranty of habitability applying in most jurisdictions and many builders offering explicit limited warranty programs covering 1-year workmanship, 2-year systems, and 10-year structural defects per industry standard warranty structures.
How do for-sale builders differ from custom builders?
For-sale builders own the land and sell completed homes at market prices (NAICS 236117), while custom builders construct on owner-occupied land under contract (NAICS 236115) per Census Bureau[5] classification distinctions, with different financial risk, land acquisition, and marketing models.
What is the Interstate Land Sales Disclosure Act?
This federal law requires registration and disclosure for subdivisions of 100 or more lots sold across state lines per HUD[16] regulatory authority, protecting buyers of unimproved residential lots from fraudulent sales practices and incomplete development.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Census Bureau data.census.gov
- [7]Census Bureau census.gov
- [8]SBA Table of Size Standards sba.gov
- [9]OSHA osha.gov
- [10]Bureau of Labor Statistics bls.gov
- [11]NAHB nahb.org
- [12]SBA lending programs sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
- [15]EPA epa.gov
- [16]HUD hud.gov
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