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asked in Estimation by (1.2k points) | 226 views

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Scope clarification:

A house contractor is one who either builds a home entirely or is doing a decent size remodel.

It does not cover handy men, specialty contractors who can only do one thing (tile laying etc) = The scope is for General contractors.

Population of the USA = 300 Mn.

Avg members / house hold = assumption = 4

So number of house holds = 75 Mn.

To account for a lot of other variants  of house holds with < 4 members = adding another 20% = rounding to 90 Mn.

Assuming that these houses were built in the last 30 years, New houses built / year = 3 Mn.

I am making an assumption that for every home that is built in a year there are another 4 homes that are remodelled / some work is done requiring a contractor.

So total capacity of work done in a year  by General contractors is = 3 Mn new homes/ year + 12 Mn remodeling homes/year

A contractor can do 1 or 2 new homes in a year, plus 2 remodelling in a year.

For simplicity I will assume we will need 1.5 Mn contractors to do the 3 Mn new homes and 6 Mn rmodeling , and another 3 Mn contractors to do the rest of the 6 Mn remodeling.

In total we will need 1.5 Mn + 3 Mn = 4.5 Mn Contractors.
answered by (16 points)
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Scope of contractors are full service - general contractor significant remodel or new home builders.

300M people in the USA. Average family size is 5. Therefore, we have 300M/5 => 50M dwellings

10% of homes are being significantly remodeled every year => 5M homes

New home construction is at 5% => 2.5M new homes built every year.


Remodelling is done generally by smaller scale contractors that can do 5 projects a year. => 5M/5 => 1M contractors.

New home construction is done by mid to large home builders that build 100 homes per site on average. 2 500 000 / 100 => 25000 large home builders.


This means there is about 1.025M contractors.
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