Kings of the Seven-Figure Hill

It is no secret that builders make big money selling million-dollar homes. In a sour market for the entry-level buyer, big builders who have maintained their revenue market share amid an affordability squeeze for millions of Americans have increased in their number of sales in the seven-figure range. Of the top 200 builders, a chunk of notable names have sold thousands of homes in the last few years to high household incomes and grown numbers of high-end sales in both single-family detached and condominium markets.  

All eight of these top 200 builders closed at least 1,000 new homes from 2012 through 2014 so far to buyers with a household income above $180,000. All have maintained relatively steady revenue market share throughout the last few years, with six of the eight seeing a year-over-year revenue market share climb from 2012 to 2014, despite an overall disappointing year for home sales in 2014. These featured big builders are increasing home sales to the 1 percent while affordability continues to keep out millennial buyers, but big pay days are definitely alleviating some of the potential damage to revenue.

Notably all eight builders have increased annual closings of seven-figure homes from year-over-year with spikes in 2014 even with most of the fourth-quarter still unrecorded.

The peak priced homes for each of the eight builders have fluctuated over the last few years. Closings to highest household income levels and homes sold for at least a one million dollar price tag don’t necessarily align, showcasing Toll Brothers as one builder closing big deals in single-family and attached homes and attracting wealthy buyers at every price range. Here's a snapshot of closings and the top price so far this year:

Predictions from a slew of analysts say that 2015 is one to watch for a dramatic increase in new-home sales. In 2014, however, entry-level buyers who desperately want new-homes definitively can’t afford them, making it a safe bet to cater to higher household incomes and high-end sales. Some of the builders on this list are seeking to reach the entry-level buyer directly, such as DR Horton with Express Homes, which means this might soon change. But based on continued price appreciation, land shortages, and delayed millennial household formation, might 2015 be another year to lean toward the money to be made from the million-dollar home?