The third day of the Builder 100 Conference in Dana Point, California, delivered four sessions covering topics ranging from the M&A market to the post-purchase consumer journey.
Below are five takeaways from the final day of the Builder 100 Conference at the Ritz-Carlton Laguna Niguel:
The M&A market remains skewed toward sellers. In the M&A market, Whelan Advisory Capital Markets founder and CEO Margaret Whelan said there are more buyers with more capital than ever before. Public and private builders as well as foreign companies are all looking to grow market share in the U.S. market via acquisition. The influx of active buyers means the M&A market is a seller’s market, according to Whelan. The interest in each deal means many companies are selling at a premium—two times book value—well above what many public builders are trading at in the current market.
Land banking is having an emerging role in the M&A space. The M&A panel on built on conversations about land banking from the first two days of the Builder 100 Conference. Anthony McGill, senior managing director and head of investment banking for Zelman & Associates, noted the rapid increase in the number of M&A deals completed with land bankers involved. Between the Great Financial Crisis in 2008 and the COVID-19 pandemic, approximately 14% of M&A deals involved land bankers; in the five years since the onset of the COVID-19 pandemic, 58% of deals have involved land banks.
McGill, Whelan, and Vestra Advisors co-founder and managing partner Richard Moriarty agreed that land banking involvement in M&A is here to stay and will likely play a larger role moving forward. The involvement of land bankers adds an additional source of financing. However, a potential drawback is that their involvement adds another stakeholder at the negotiating table.
From public builders to foreign buyers, each has different motivations for pursuing acquisitions. For the past several years, the M&A market has been red hot. The activity has accelerated as more companies are interested in scaling via acquisition. For public builders, Moriarty said their motivation to grow via M&A is to either grow lot positions in markets they already operate in or to add an anchor to a new geographic market.
The themes highlighted by Moriarty can be observed in the deals recently completed in the market. Dream Finders Homes’ acquisitions of Green River Builders and Liberty Communities staked the 2025 BUILDER of the Year’s presence in the Atlanta market. The acquisitions of Rausch Coleman by Lennar and Elliott Homes by Meritage Homes marked entrance into new markets in the South/Midwest and the Gulf Coast, respectively.
Foreign buyers, particularly Japanese companies, view the United States as a growth market and have much longer horizons than public and private peers in the country.
The design trends of tomorrow: Multigenerational homes, smaller footprints, and unique parking solutions. Michael Woodley, William Hezmalhalch, and Katja Martinez shared the trends and themes that are defining how homes are being designed. Designers are becoming more creative in their efforts to help achieve density and deliver attainable products for homeowners of all demographics. Additionally, the prevalence of smaller households is allowing the incorporation of multigenerational designs and multiple living spaces in products. Additionally, the three panelists highlighted creative ways that designers are solving for parking. Adding parking below detached products and reducing the size of garages are among the ways cars, parking, and garages are being reimagined.
Technology and artificial intelligence (AI) can help improve the post-purchase buying experience. Adeel Mallick, vice president of digital products for Hovnanian Enterprises, discussed the technology and automation solutions he has helped develop to improve the customer experience. He highlighted how technology—and generative AI approaches specifically—can help supercharge workflows to allow employees to become more efficient. Additionally, by automating tasks and workflows that typically funnel through call centers can enhance the customer experience and allow companies to enhance their ability to help customers in real time. Technological approaches for the home warranty process can also allow teams to be more proactive and anticipate potential issues rather than being reactive as they happen.
