Constructing a new home – from developing the lot to handing the keys over to the buyer – is a complex process involving numerous specialists in a wide range of fields.
That complexity is reflected in the number and variety of professions represented among the ranks of NAHB’s Associate members, who account for roughly two-thirds of total membership.
The largest share of Associate members – 41% – are subcontractors or specialty trade contractors, according to the 2017 annual member census conducted by NAHB’s economics department.
The remainder of Associates work in five broad categories: professional specialties, retail dealerships/distributorships, financial services, wholesale dealerships/distributorships, and “other” activities.
According to NAHB analysis, 12% of Associate members work in professional specialties such as accounting, engineering and legal services. About 11% work in retail dealerships and distributorships.
Another 9% are employed in various financial services including commercial banking, mortgage banking and insurance or title companies, and 5% work in wholesale dealerships or distributorships.
Since NAHB started profiling its members in 2008, there has been little change in the percentage of members working in five of the six professional categories. The only category showing any significant change is subcontracting, which increased from 34% in 2008 to 41% last year.
The analysis also found that in 2017, Associate members had a median of 11 employees on their payrolls, the highest number since the inception of the Associate census.
The median annual company revenue among Associate members was $2.6 million. However, revenue levels varied greatly. Almost a quarter of Associates (23%) reported annual revenues under $500,000. The largest group (31%) reported incomes of $1 million to $4.99 million.
The median age of Associates was 56, a number that has increased steadily since 2008 when the median age was 50. More than half of Associate members (52%) have earned a bachelor’s degree or higher, and the same percentage have been NAHB members for 10 years or more.