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How long does it take to build a house

How long does it take to build a house?

Whether just perusing or intently looking, you've probably noticed something about the housing market: There aren't currently many places to choose from.

The slim-pickings situation isn't a new one. In fact, according to the National Association of Realtors, total supply levels have fallen year-over-year for 35 months in a row. What's more, the overall unsold housing supply amount is hovering at four months as of April, based on the current sales pace.

Given this reality, you may be wondering just how long it takes to build a property from scratch. After all, waiting for a newly constructed house to hit listings - as opposed to an existing one - can serve as a worthwhile option. However, as you might imagine, the period of time that passes before an in-process property becomes a finished product tends to vary.

Based on the most recent analysis available from the Census Bureau and the National Association of Home Builders, approximately seven months is the average amount of time before developers are ready to put a house up for sale. Having said that, "ready" is a relative term, because houses are built for various intentions and by different entities.

For example, when a single-family home is created for rent purposes, the completion average is slightly less than nine months, based on NAHB's analysis. When it's built by the owner of the land, the permit-to-completion process can run between 10 and 12 months.

Where are you looking to buy?

Another factor that can play a role in completion time is the area of the country in which you're looking to buy.

For instance, in the Mountain West - meaning states like Utah, Nevada, Idaho and Wyoming - it's around 15 days from permit to start, then an additional six months from permit to completion. Meanwhile, on the West Coast, you'll often have to be a bit more patient, as it takes around 31 days for developers to begin building after obtaining a permit, then another eight months before they've pounded in the very last nail.

In addition to the region of the country, the nature in which a house is under construction - the city versus someplace more rural - also plays a role. In a New England-based metropolitan statistical area, it's about 10 months before a single-family home receives it's finishing touches. It's slightly less than that in a non-MSA, averaging around eight to nine months.

Almost uniformly, according to the Census' Survey of Construction, properties built in the city versus more rural climes reach completion quicker. This is largely due to availability of labor, as more people live in metros where demand tends to be greater as well. This increases the need for rapid development, meaning as quickly as circumstances allow.

Bill Green, co-founder and COO of Hinged.com, told NAR that environmental conditions in a given region can prove pivotal. One such condition is soil type, which impacts drainage, and topography. For example, building where land is flat, as opposed to an area that's features rougher terrain, tends to have fewer potential obstacles, both in the literal and figurative sense of the term.

The bottom line is this: The average time to build a house is almost entirely dependent on circumstances. Your timeline plays into those circumstances. If you're not in any rush, waiting for a house to reach the finished stage may make the most sense. But if you're looking to buy as soon as possible, an existing home can be just as good - if not better than - a newly built residence.

By working closely with your real estate agent and loan officer, you can look at your available options and settle on the decision that's right for you.