Top 10 Publicly-Traded Builder Share Lower in 2017

Filed in Economics, Home Building by on October 12, 2018 2 Comments

The top 10 publicly-traded builders in 2017 captured a 25.5% share of new single-family home closings, down from 27.4% in 2016. The data is based on their latest 10K filings with the Securities and Exchange Commission, which provide a comprehensive summary of each firm’s financial performance.

The 25.5% share in 2017 is out of the 2017 U.S. total of 616,000 new home sales.  This count represents a smaller share of the total single-family market when not-for-sale, custom home building is included.

top ten builders graph

As NAHB economist Steve Melman reported in a recent Eye on Housing blog post, publicly-traded companies possess many advantages, including better access to credit from their own balance sheets, economies of scale in land and material purchases, and in advertising and land holdings.

However, small builders are better positioned to address the growth in their local markets and their familiarity and flexibility allows them to customize their product to meet local demands and preferences.

Also, small home building companies usually have their roots in the local market and use those more personal relationships to improve quality and increase repeat business.

The often held small builder concern that the large national companies will take share away has not occurred. The residential construction industry remains primarily a sector dominated by a large number of small entrepreneurs.


Comments (2)

Trackback URL | Comments RSS Feed

  1. Very true! Due to lack of quality credit, I have recreated my home building business utilizing technology and design to create a scalable business providing custom homes in a production environment. Each home is custom designed in our 3D Home Labs, then priced and contracts. Each house receives it’s own website with over 1,000 items to select, change, modify online. It has completely changed how I conduct business and resonates with our homebuyers as it takes the fear out of hanging a “custom home” built.

    • Cynthia Hert says:

      I agree with you, that small contractors can utilize technology, tools and equipment to help them be competitive in the marketplace. The inventor of TrussLox has been a professional framer since 1976 and the old saying holds true, Necessity is the Mother of Invention! He patented his temporary truss bracing system and is now distributing all over the nation. Great success story, best wishes, Cynthia

Leave a Reply

Your email address will not be published. Required fields are marked *