Based on builders’ 10K filings in 2017, the top ten publicly-traded builders captured a 25.5% share of 616,000 new single-family closings last year – excluding not-for-sale custom home building – down from 27.4% in 2016.
CalAtlantic, the fifth-largest builder in 2016, is not included in 2017’s top ten calculation as it did not file a 10K for that year. The builder was acquired by Lennar in 2016, but its deliveries are not included in Lennar’s 2017 10K. Beazer Homes takes its place in the top ten.
Publicly-traded companies possess many advantages including better access to credit from their own balance sheets, economies of scale in land and material purchases as well as in advertising and land holdings.
However, small builders are better positioned to address the growth in and the knowledge of their local markets and their flexibility allows them to customize their product to meet local demands and preferences.
Read More
