First Research US Industry Profile

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Residential Construction Contractors
SIC Codes: 1521, 1522, 1531
NAICS Codes: 2361
Last Quarterly Update: 6/6/2022
Companies in this industry construct and renovate residential buildings. Major companies include DR Horton, KB Home, Lennar, NVR Construction Limited, and PulteGroup (all based in the US), as well as Country Garden (China), Daiwa House (Japan), and Desarrolladora Homex (Mexico).
Global construction of new housing is forecast to grow 3.1% per year through 2025 to 59.2 million units, rebounding from the steep declines of 2020 caused by the COVID-19 pandemic, according to Freedonia. Long-term growth in the industry will be driven by factors including growing urban population levels, low interest and mortgage rates, rising living standards within the Asia/Pacific and Africa/Mideast regions, and increasing subsidized housing to reduce informal dwellers.
The US residential construction contracting industry includes about 170,000 establishments (single-location companies and units of multi-location companies) with annual revenue of about $340 billion.
Builders of both single-family and multifamily housing are included in the industry, as are residential remodelers. The industry includes general contractors, who build on land owned by others, and operative builders, who build on land they own or control. Specialty trade contractors such as plumbers and electricians, who often work as subcontractors for residential construction contractors or operative builders, are covered in separate profiles.
Competitive Landscape
Demand is driven by population growth and economic growth. The profitability of individual companies depends on efficient operations and securing favorable building locations. Large builders enjoy economies of scale in purchasing. Small companies can compete effectively by specializing in a certain type of home or by focusing on a specific geographic area. The US industry is highly fragmented: the 50 largest firms generate 11% of industry revenue.
The outbreak of the coronavirus pandemic pushed companies to adapt and enhance their digital capabilities to cater to customers. These include virtual home tours and online interactive floor plans, live chats with sales representatives, virtual appointments, online and/or contactless methods for transactions, and virtual or drive-through closings.
Products, Operations & Technology
Major products are new homes for-sale and residential remodeling. New homes for-sale account nearly 45% of the industry revenue, followed by residential ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

10/04/2021
06/28/2021
03/29/2021
12/28/2020
11/23/2020
08/31/2020
05/04/2020
10/07/2019
04/29/2019
01/28/2019
10/22/2018
07/16/2018
04/16/2018
01/22/2018
10/16/2017
07/10/2017
04/10/2017
01/09/2017
10/03/2016
07/05/2016
04/04/2016
01/04/2016
09/21/2015
06/15/2015
03/09/2015
12/08/2014
09/15/2014
06/23/2014
03/31/2014
01/06/2014
09/30/2013
06/17/2013
03/25/2013
12/17/2012
09/24/2012
07/09/2012
04/16/2012
01/09/2012
10/03/2011
06/27/2011
03/14/2011
12/06/2010
09/13/2010
06/07/2010
03/01/2010