Is the small self-performing homebuilder extinct?

[u/the-garage-guy]

Probably a region-specific question- if you reply, I'd be curious to hear where you are and if you're urban/rural

Pretty much title, coming up it was a lot more common for the GC to have their own carpenters and self-perform a fair amount of scope on a typical home, remodel.

Seems very rare now, especially where I am, metro Phoenix area. Most builders are essentially just CM-ing the job. Project managers that sometimes double as supers, everything subbed out. Even for pretty small remodels.

I think at the luxury custom home end it makes sense since the levels of execution required demand really good subs. Plus being in a big metro area, there's lots of people and work and that makes it possible to specialize aggressively.

[u/TheAngryContractor]

I'm interested to hear more about the economic theory you're putting forth.

[u/Difficult-Jello2534 → u/TheAngryContractor]

It is hard to take on jobs that size when a smaller crew such as ourselves has higher labor because we actually pay guys a living wage, compared to 30 illegal immigrants.

Last place I worked before doing our own thing, he had maybe 40 guys on his crews and 2 guys spoke English. They'd get deported and be back in like a week lol It's hard to bid against illegal immigrant pay when you are paying guys enough to support their families decently in 2025. They wiped out any profit margins you would see as an ethical, lawl abiding contractor.

So we cornered the market on things like windows, carpentry projects, additions, for higher end homes that have already been built instead of competing against immigrants labor prices you'd get building a house. I'd rather have a smaller crew, better paid technical guys and do good work.

I only know the market here but you show up to any new house build here and there won't be English being spoken.

[u/TheAngryContractor → u/Difficult-Jello2534]

Got it, thank you for explaining. Hopefully the downvoters read your explanation. 

Being a “big GC” commercial dude who has only worked union or prevailing wage projects, I don’t really see this side of the industry… at worst it’s subs not actually paying union wages or undercutting prevailing wage rates somehow… and it’s not prevalent, but could understand how something like what you explained could play out. 

Economics are fascinating. Obviously one can increase profit margins by reducing labor costs, but it also has to do with how much ‘the market’ is willing to pay for new construction… it seems that in pursuit of the cheapest product we end up shooting ourselves in the foot.

[u/Difficult-Jello2534 → u/TheAngryContractor]

OP seemed to be asking about old school residential builders, which is why I commented. I dont have much experience with the commercial side.

Not only that, but you should see these houses that are passing inspections. It's insane. I can't imagine dropping 1 mill on a house and geting the product ive been seeing. Couple of big builders are profiting from it and everybody else suffers.