• The residential playbook

    Buildertrend 2026 data report

    Buildertrend Gated Report Hardcover bookcover

    Who we surveyed

    The insights in this report come from experienced residential builders actively running construction businesses today.

    0

    %

    of builders have been in business for more than 8 years

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    %

    of respondents are custom home builders or remodelers

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    %

    of respondents are company owners or presidents

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    %

    of builders manage more than six projects per year

    Today’s leading builders are no longer relying on intuition alone

    They’re building companies powered by systems, data, transparency and disciplined operations. They’re investing in tools that give them clearer visibility into their numbers, stronger processes for managing projects and better ways to communicate with clients and teams.

    The survey insights throughout this report reinforce one central idea: the builders who succeed in today’s market are the ones who treat construction as a business, not just a craft.

    Two men wearing caps stand at a workbench in a construction or workshop setting, looking at a tablet device. The man on the left wears a light-colored shirt with a visible tattoo on his arm, while the man on the right wears a dark quilted vest over a blue shirt. Large windows and wooden materials are visible in the background.
    86% of builders integrate estimating
with job costing
    80% of builders track daily job site progress digitally
    79% of builders track financial performance KPIs

    Read on for more insights and to learn how builders are thriving amid historic industry pressures.

  • Historic context
    A man wearing a gray company t-shirt and cap operates a yellow and black miter saw in a bright indoor workshop setting, with large windows visible in the background.
    A two-story residential house under construction with white house wrap, exposed wooden framing, and workers on scaffolding installing roof shingles on a clear day.

    Housing shortage

    The U.S. housing market is currently short roughly 1.5 million homes*, creating significant pressure on builders to increase supply and close the gap between demand and available housing. *Source: NAHB

    Labor shortage

    The construction industry needs approximately 723,000 new workers every year* just to meet current demand and replace those leaving the workforce. *Source: HBI

    Project delays

    Workforce constraints are adding nearly two months to construction timelines on average*, making it harder for builders to deliver projects on schedule. *Source: HBI

    Economic impact of workforce gaps

    Labor shortages are costing the industry more than $10.8 billion annually* through lost productivity, delayed projects and reduced housing output. *Source: Builder Online

    An aging workforce

    Nearly 41% of the construction workforce is expected to retire by 2031*, intensifying the already significant labor gap facing the industry. *Source: HBI

    Two construction workers review blueprints and a project timeline on a tablet device at a job site table.

    To understand how today’s most successful builders are navigating these challenges and positioning their businesses for growth, Buildertrend surveyed hundreds of residential construction professionals across the industry. Read on to learn the top four takeaways for the report.

    A man in a red polo shirt and black cap stands on an industrial metal platform, speaking to a camera during what appears to be a video recording or live stream in a brick-walled studio space.
    Cover of "The Modern Builder Playbook" by Buildertrend featuring construction industry insights, with images of a home interior, a contractor in black shirt, and an exterior view of a residential house.
  • Industry challenges

    The industry is professionalizing faster than ever

    The best builders aren’t just builders anymore; they’re building systems-driven businesses. Top contractors are tracking financial performance, job costs, budget variance, schedules and broader business KPIs. What used to be managed by instinct is increasingly managed by numbers.

    This shift marks a major evolution for the industry as residential construction moves away from informal processes and toward more professional, data-informed business operations.

    Buildertrend work in progress product screenshot

    The operating system of construction is changing

    For decades, construction companies ran on a patchwork of spreadsheets, point systems, email threads, phone calls and whiteboards. That model is beginning to break down. Builders are rapidly adopting centralized platforms that connect job site activity, financial tracking, schedules, client communication and reporting in one place.

    In other words, construction companies are moving toward true operating systems in the form of platforms designed to run the entire business.

    Buildertrend summary dashboard product screenshot

    The next competitive edge isn’t craftsmanship – it’s profit control

    Margins are becoming the defining challenge of modern construction. The survey reveals a surprising tension: builders are tracking their finances more closely than ever before, yet maintaining predictable margins remains difficult. Labor costs, change orders and material volatility continue to disrupt profitability.

    The builders who succeed in this environment aren’t just the best craftspeople. They’re the ones who can predict job costs, monitor budgets in real time and prevent margin erosion before it happens. In today’s market, financial control is becoming the industry’s next competitive advantage.

    Buildertrend job costing budget product screenshot

    The industry still runs on trust

    Even as construction becomes more digital and data-driven, one thing hasn’t changed: relationships remain the foundation of the industry. The survey shows that most builders still generate the majority of their work through referrals and word-of-mouth.

    The most successful builders understand that systems and technology don’t replace relationships, but strengthen them by improving communication, transparency and coordination.

    Buildertrend client updates product screenshot

    What follows is a behind-the-scenes look at how today’s most successful builders plan their businesses, run projects, manage finances and build lasting companies.

    Cover of "The Modern Builder Playbook" by Buildertrend featuring construction industry insights, with images of a home interior, a contractor in black shirt, and an exterior view of a residential house.
  • Data-driven results

    Builders are planning like CEOs

    Survey results show that many residential construction companies are no longer planning project by project, but by their businesses as a whole. Instead of simply reacting to incoming work, builders are setting clearer revenue goals, managing structured project pipelines and building systems that give them greater visibility into future capacity.

    In other words, the role of the builder is evolving. Today’s successful construction leaders are operating more like CEOs by balancing craftsmanship with financial planning, operational oversight and long-term growth strategy.

    A man working at a desk views architectural floor plans on a tablet while monitoring a spreadsheet on a large desktop monitor, with a blue reference book nearby.
    A uniformed service technician in a black cap and shirt shows a digital tablet to two women in a bright, modern home with large windows.

    The data also reveals that most builders participating in this survey run established companies with stable operations and predictable workflows. They understand how many projects they can realistically manage, how their teams operate and how their business performs financially.

    That level of clarity changes how decisions are made. Hiring becomes more intentional. Project selection becomes more strategic. Growth becomes something that can be planned rather than simply hoped for.

    Insights in action:
    How Cardinal Crest Homes scaled with intention

    When Cardinal Crest Homes began scaling its custom home business, the team realized something many builders eventually discover: great craftsmanship alone isn’t enough to run a great construction company.

    They needed a better system …

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    “We were using Excel and Google Sheets to organize budgets, draws, email messaging and file management. I got frustrated and said, ‘There’s just got to be a better way.’ Buildertrend provides convenience, saves time and gives our homeowners peace of mind.”

    Cardinal Crest logo

    Joe Christensen Founder and owner of Cardinal Crest Homes

    Today, Cardinal Crest Homes runs a highly organized, data-driven operation where project managers, office staff, trade partners and homeowners all stay aligned through one platform. The Kansas City design-build firm completes 15 to 20 custom homes each year – projects known for the kind of thoughtful design and craftsmanship that leave clients’ jaws on the floor.

    The companies that thrive in the years ahead won’t just build great homes – they’ll build businesses designed to scale.

    Cover of "The Modern Builder Playbook" by Buildertrend featuring construction industry insights, with images of a home interior, a contractor in black shirt, and an exterior view of a residential house.
  • Planning the business
    Three men discussing construction or renovation plans inside a brick-walled room with a fireplace, one holding a tablet device and another wearing a white hard hat.

    How top builders set jobs up to win

    Every successful build starts with one clear differentiator: preconstruction.

    Builders who standardize preconstruction processes gain control over costs, schedules and client satisfaction. When every project starts with precision planning, builders can focus less on putting out fires and more on delivering elite results.

    Paul Ledet headshot

    Chris Ledet Homes saved 40+ hours per week setting up new projects when they moved to one connected system. Now they complete five extra projects each year.

    Paul Ledet, Owner of Chris Ledet Homes

    A message from our CEO

    “Over the past 20 years, I’ve had the privilege of working alongside thousands of construction professionals. In that time, I’ve learned something simple but powerful about this industry: builders are some of the most resilient, resourceful and forward-thinking entrepreneurs out there.

    Four people posing together at a trade show or convention center, with the man in the center holding an award trophy while wearing a lanyard badge. Three others wearing lanyards and branded polo shirts stand beside him, smiling at the camera. Large displays and booths are visible in the background.
    Dan Houghton smiles while working at a laptop in a modern office setting with large windows in the background.

    Inside, you’ll find insights from hundreds of construction professionals who generously shared how they plan projects, manage finances, lead their teams and deliver exceptional client experiences. Their openness speaks to something I’ve always believed about this industry: builders are stronger when they learn from each other.

    While this report focuses on how builders are operating today, it’s clear the next wave of transformation is already beginning. Emerging technologies like AI are starting to reshape how builders estimate, forecast and make decisions – and the companies that have already built strong systems will be best positioned to take advantage of what comes next. At Buildertrend, we’re beginning to integrate these capabilities into our platform in ways that help builders turn their data into faster, more informed decisions.


    My hope is that the insights in these pages give you new ideas, renewed confidence and practical strategies you can put to work in your own business.”

    Dan Houghton smiles while working at a laptop in a modern office setting with large windows in the background.

    – Dan Houghton, CEO and
    Co-founder of Buildertrend

    Cover of "The Modern Builder Playbook" by Buildertrend featuring construction industry insights, with images of a home interior, a contractor in black shirt, and an exterior view of a residential house.