The National Association of Home Builders recently released a report December 21, 2010 that found that an overwhelming majority of the nation’s housing industry is made up of small businesses.
According to the report, which used data from the 2007 census, more than 65 percent of home building establishments made less than $1 million in annual receipts, 31 percent earned between $1 million and $10 million, and 4.1 percent earned more than $10 million.
At least 96 percent of residential builders and remodelers were considered small businesses (generating less than $33.5 Million in annual business) by the U.S. Small Business Administration standards. With market conditions slowly returning to normal in many parts of the country, small businesses have the ability to move quickly and take advantage of the increasing confidence of consumers.
“Small businesses have always been the predominant force in housing and they lend this industry its economic vitality,” said Bob Jones, NAHB chairman and a builder from Bloomfield Hills, Mich.
As long as small businesses strive to take advantage of the improving market and compete amongst each other for business, they should continue to dominate the industry, according to the report.