I think the OP is concerned about why did not the useradd command create the home directory. 
The CREATE_HOME directive in the /etc/login.defs file decides whether the useradd command should create the home directory by default (without having to use the -m option) or not. If it is commented out or set to NO, only then you will have to explicity use the -m option for the useradd command to create the home directory.
[root@server ~]# grep CREATE /etc/login.defs
CREATE_HOME    yes
[root@server ~]#
If CREATE_HOME is set to yes, then the useradd command will create the home directory in the path mentioned in the /etc/default/useradd file.