Residential Construction Contractors

Residential Construction Contractors

Brief Excerpt from Industry Overview Chapter:

Companies in this industry construct and renovate residential buildings. Major companies include DR Horton, KB Home, Lennar, and PulteGroup (all based in the US), as well as Country Garden (China), Daiwa House (Japan), and Desarrolladora Homex (Mexico).

COMPETITIVE LANDSCAPE

Demand is driven by population growth and economic growth. The profitability of individual companies depends on efficient operations and securing favorable building locations. Large builders enjoy economies of scale in purchasing. Small companies can compete effectively by specializing in a certain type of home or by focusing on a specific geographic area. The US industry is highly fragmented: the 50 largest firms generate about 30% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are new homes for-sale and residential remodeling. Single detached residential buildings account for about 60% of the industry revenue, followed by apartment building and additions, renovations, and alterations both account for about 10% each. Apartment type condominiums are about 5%. Companies generally specialize in either single-family or multifamily work.