Market conditions have produced stunning increases in top-line growth and bottom-line financial performance for large home building companies.

To leverage their scale, larger builders reinvest in their operations by adapting innovative operating practices such as adding information systems for estimating, scheduling, and purchasing or using panel plants to save time and costs in construction. Better performance encourages even more builder consolidation, which in turn produces even greater scale economies, creates more incentives for investments to leverage these opportunities, and so on.

SOURCE: HARVARD JOINT CENTER FOR HOUSING STUDIES: THE EVOLVING HOME BUILDING INDUSTRY AND IMPLICATIONS FOR CONSUMERS