Custom Home Premium Highest Since 2011, Lower in Mid-Atlantic Region

The custom home premium has reached 12.6%, its highest level since 2011, according to the National Association of Home Builders. 

This premium is the difference between what typical buyers pay per square foot for a contractor-built home and a spec home. 

As of NAHB’s latest Survey of Construction, single-family detached homes started in 2025 had a median price of $171 per square foot. In comparison, the median price for spec starts, after excluding lot values, was $152 per square foot. 

While median spec-home prices per square foot have mostly plateaued for the last four years, median custom prices have increased more significantly, going from $156 per square foot in 2021 to $171 in 2025. That’s a cumulative gain of nearly 10%. 

The story is a bit different in the Middle Atlantic, though. 

In this region, NAHB reported the median spec home price per square foot (excluding lot value) was $193 for new single-family detached homes started in 2025. For custom homes, the price was $174, making for a median custom home premium of -10%.  

The custom home premium is also negative in the following regions, indicating that custom homes are typically more affordable in these areas: 

• Pacific (-24%) 
• Mountain (-7%) 
• New England (-11%) 

In comparison, the East South Central and East North Central regions saw the highest custom home premiums (29% and 27%, respectively).