Pretty Good Isn’t Excellent
Companies built for production work aren’t built for perfect work
On the surface, it’s easy to describe the difference between production and custom builders. The production builder follows the same basic home plans over and over, while the custom builder creates a unique home for each client.
The distinctions go deeper, though. These two builder types are fundamentally different businesses.
This difference shows up in the quality results. An April 2025 article in Warranty Week reviewed how much construction defects were costing production builders in the United States. Its findings weren’t encouraging. The 27 large homebuilding companies they studied paid a total of $1.071 billion in warranty claims in 2024.
This isn’t a dig at production builders. These companies play an important role in our society.
By adapting management systems developed in the auto industry, production builders are able to supply affordable homes to millions of Americans. Last year, they accounted for about 81% of single-family home starts. That percentage will likely grow: thanks to a shortage of skilled trade workers, big builders are investing millions of dollars into automation technologies that will ultimately let them build more homes in less time with fewer hands.
Many production builders also do pretty good work, with fewer defects than the industry average. But while manufacturing systems make it possible to roll defect-free cars out of a climate-controlled factory, getting similar results with homes built in the sun, rain and snow can seem like a pipe dream.
The desire for high quality is a big reason why many people opt for a new custom home. Custom builders also must adjust to weather conditions, but generally they don’t have thousands of dollars in callbacks. How do they do it? Well, despite their sophisticated management systems, they are craft businesses at heart. They attract skilled workers and subcontractors who are also devoted to craft, and they pay well for quality work. They strive for perfection and base their reputation on delivering it.
Professional custom builders don’t look at homes as units of output. Instead, each project is a carefully engineered work of art.
The custom builder’s business systems are also designed to ensure a great customer experience. You aren’t just buying a product—you’re entering a relationship with someone devoted to making your personal vision a reality. Working with one of these companies, you may be able to meet every person who touches your home.
There’s no denying that a handcrafted home will cost more than a production model of similar size, but some owners consider that extra cost a worthwhile investment. For these people, just having a roof over their head isn’t enough.
A similar dynamic plays out in other industries. You can get a decent plate of pasta at Olive Garden but the experience won’t approach that of the one-of-a-kind, upscale Italian restaurant. And a custom suit costs more than one off the rack.
We live in an age of bland, franchised sameness. In a time like this, a quality-built custom home is how some people assert their individuality.
