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Big takes on a whole new meaning when it’s being used in the homebuilding industry.
For one, the top 15 homebuilders, according to a new report from remodeling and repair site fixr.com, account for 73% of the total $89.4 billion new home market value. And the top five of the top 15 are giants among giants: those companies, Lennar, D.R. Horton, NVR, Pulte Group and Toll Brothers, account for 60% of the market. Miami-based Lennar and Arlington, Texas-based D.R. Horton, with a market value of $15.51 billon and $15.45 billion, respectively, combine to create a one-two punch of 17% market share. Those two companies have a heavy presence in Florida, too, as does Pulte.
Overall, the homebuilding market has grown 2.5% since 2014, which, while not gangbusters, is better than the decade prior to it, when the recession toppled the sector. For one, only half of all builders were able to stay in business, the report shows, with 2012 recording the fewest number of residential builders since reporting started in 1997.
While reports from Fannie Mae and the National Association of Home Builders, among others, project more industry growth in the coming years, several obstacles remain. The list includes labor shortages, the 2020 presidential election and changes to tax laws.
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