Century Communities—the 10th largest builder on the 2024 Builder 100—marked 10 years as a public home builder in mid-June.
Since going public in 2014, Century Communities has achieved many key milestones, including completing numerous acquisitions, expanding into an additional 16 states and over 40 new markets, and vertically integrating operations to provide mortgage, title, and insurance services.
"What an honor to look back on 10 years as a public builder and to see how far we've come in our mission to deliver 'A Home For Every Dream,'" says Dale Francescon, chairman and co-CEO. "As we set our sights on the next 10 years, we're more confident than ever in our ability to make the dream of homeownership possible with quality, affordable homes in sought-after markets, supported by a best-in-class home buying experience."
To hear more about the journey and future plans, BUILDER chatted with Dale and Rob Francescon, co-CEO and president. Learn more about the company’s achievements, challenges, strategic decisions, financial performance, and goals and objectives for the next decade below.
Looking back over the past decade of Century Communities, what are you most proud of?
Dale: There are numerous events and achievements over the last decade that come to mind. However, the common theme for each of these is how proud we are of the Century Communities’ family of team members and what they accomplish each and every day as the company continues to grow and provide customers with "A Home for Every Dream."
Can you share some of the key milestones the company has achieved over the past 10 years since going public?
Rob: There have been many achievements, but to highlight a few:
- Expanding into an additional 16 states and over 40 new markets since our IPO 10 years ago;
- Completing nine strategic acquisitions since we founded the company;
- Achieving more than 10,000 annual new-home deliveries for the first time in 2021;
- Leading the industry as the pioneer in online home buying, which started with Century Complete and fully launched companywide in 2022;
- Vertically integrating our operations to provide mortgage, title, and insurance services;
- Being designated as the highest-ranked home builder on Newsweek’s Most Trustworthy Companies in America list in 2023 and 2024;
- Establishing the Century Communities Foundation and the Century Cares program, which support the company’s charitable and volunteer initiatives on a local and national scale; and
- Being recognized as a top 10 U.S. home builder for the last six years in a row.
What are some of the most significant challenges the company has faced, and how did you overcome them?
Dale: The onset of the COVID-19 pandemic created a significant impact to the global economy, and the U.S. home building market was no exception. When the pandemic first hit, our first goal was to ensure that the health and welfare of our team members, trade partners, and customers was protected. With new protocols and safety measures in place, the entire team rose to the challenge as we continued to operate the business and serve our customers within a new and uncertain environment. Out of this adversity came ingenuity and tenacity that resulted in new and better ways to run our business that we still employ today.
Additionally, the sharp increase in interest rates that started in mid-2022, as well as the volatility in rates since then, has also been a significant challenge to our industry. The increase in rates weighed on affordability, and our home building and financial services teams quickly pivoted and worked together to offer more efficient homes and provide incentives through mortgage rate buydowns to keep demand strong and monthly payments more affordable.
What strategic decisions have had the biggest impact on the company's growth and success over the past decade?
Rob: Scaling our business from being primarily a local home builder to one with a truly national geographic footprint through organic growth and the acquisition of other home builders has allowed us to become the company that we are today. Also, moving our focus to spec production and the entry-level segment have been key drivers of our success. Concentrating on the entry-level home buyer allows us to target the broadest potential pool of customers and favorably positions Century Communities, especially Century Complete, to address the shortage of affordable housing that exists today in the country. Spec production streamlines the construction process and leads to more efficient build times, drives increased profitability and quicker inventory turns, and allows buyers to more easily lock in mortgage rates for certainty of financing.
How has the company's financial performance changed since it became a public company?
Rob: Accessing the public markets has allowed Century Communities to significantly accelerate its growth. Over the past decade since our IPO, Century Communities has become one of the 10 largest U.S. home builders and increased its presence from two states and five markets to 18 states and over 45 markets. We delivered 1,046 homes for $352 million of home sales revenues in 2014 and expect our full-year 2024 results to see more than a 10-fold increase over those levels. Over this period, we have also grown our stockholders’ equity from $365 million to $2.5 billion. Additionally, we have seen a structural improvement in our margins as our expanded national scale has driven greater purchasing power and increased home building efficiencies.
Can you discuss any major acquisitions or mergers that have been pivotal for the company?
Dale: All of our acquisitions and mergers have helped propel Century Communities’ growth and expand our national footprint and market depth. One example of a notable transaction was our joint venture and ultimate acquisition of Wade Jurney Homes, which we have rebranded as Century Complete. With the investment of additional financial and operational resources, Century Complete has become a meaningful part of our business and increased our entry-level focus while expanding our access to capital efficient, finished lots.
Our two acquisitions this year, Landmark Homes in Nashville and Anglia Homes in Houston, are reflective of our current acquisition strategy. Given our expansive geographical footprint, our focus is now on increasing local market share, and these transactions allowed us to increase our penetration in those large markets while generating an ongoing supply of future finished lots.
How has the company leveraged technology to improve its operations and customer experience?
Rob: Technology is a cornerstone to Century Communities’ marketing, purchasing, customer relations, and IT efforts. We pioneered online home buying, which has allowed us to leverage our resources and meet our buyers where they are—whether in their homes or at one of our communities. Our centralized construction services group has also enabled us to streamline our product offering and reduce our cycle times and direct construction costs.
What are the company’s primary goals and objectives for the next 10 years?
Dale: Given the strength and durability of the platform that has grown since our IPO, we are extremely excited about Century’s prospects over the next 10 years. With a strong and seasoned management team, more than 78,000 owned and controlled lots, and a geographic platform spread across 18 states and over 45 markets, we plan to drive continued growth at higher returns by deepening our share in existing markets and generating further operating efficiencies by leveraging that increased scale.
