Built to last: Industry revenue growth is anticipated to moderate gradually as interest rates increase

While Home Builders industry revenue remains well below its prerecession high, the industry's projected growth is a welcomed change from the low levels of demand for homebuilding that were crippled by the housing crisis of the last decade. Although revenue for the industry began its turnaround just prior to the beginning of the period, the past five years to 2018 have marked the most considerable years of consecutive industry growth. Higher disposable incomes and improving economic activity during the five-year period have encouraged consumers to buy homes, benefiting industry demand. However, industry growth is expected to persist over the five years to 2023, albeit at a slower pace...purchase to read more.

Industry Statistics & Market Size
Revenue
$83bn
Annual Growth 13-18
3.7%
Forecast Growth 18-23
Profit
Employment
607,307
Businesses
338,020
Market Share of Companies

Industry Threats & Opportunities

  • Higher disposable incomes and improving economic activity during the five-year period have encouraged consumers to buy homes
  • A falling unemployment rate has led to rising per capita disposable income and slower growth of household debt
  • The next two years are expected to be the most lucrative of the five-year period
  • Industry Report - Industry Key Buyers Chapter

    The Home Builders industry is characterized by many small-scale establishments that service relatively narrow and localized markets. However, several large industry players exist that provide design and development services on a national scale. Together, these players have built a strong market presence by operating in multiple regions across the United States and hiring subcontractors to complete the majority of actual construction work. In 2018, the industry is expected to maintain its low market share concentration, with only one business, NVR Inc., controlling more than 5.0% of total industry revenue. NVR Inc. uses fixed price contracts with a range of independent subcontractors. Meanwhile, smaller industry operators focus on providing local services and assisting larger projects...purchase to read more.

    Additional Insights for the Home Builders Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Home Builders Industry are

  • Having a high prior success rate (including completed prior contracts)
  • Access to multiskilled and flexible workforce
  • Development of a symbiotic relationship with another industry
  • IBISWorld analysts also discuss how external factors such as Value of residential construction and Housing starts in the Home Builders industry impact industry performance..

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    What's in this report

    What is the Home Builders Industry?

    Industry operators primarily construct single-family homes, where units are separated by ground-to-roof walls and have no units above or below. The industry also includes remodeling of houses and other residential buildings. Industry operators are general contractors, design-build companies and single-family construction management companies acting as general contractors and builders.

    Industry Products
  • Brick exterior homes
  • Wood exterior homes
  • Stucco exterior homes
  • Vinyl siding exterior homes
  • Fiber cement exterior homes
  • Other exterior homes
  • Industry Activities
  • Single-family homebuilding and general contracting (i.e. detached housing units, townhouses and row houses)
  • Managing single-family-housing construction
  • Low-income single-family-housing construction
  • Managing residential remodeling construction
  • Handyman construction for residential buildings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Value of residential construction
  • Housing starts
  • Number of households
  • year conventional mortgage rate
  • National unemployment rate

  • Current Performance
  • Demand ignites
  • Supporting home ownership
  • Chart: Revenue Growth

  • Industry Outlook
  • Short-term burst
  • Long-term expansion
  • Rental blues
  • Table: Home Builders Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Home Builders Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Administration of Government Programs
  • Consumers

  • Key Selling Industries
  • Cement Manufacturing
  • Clay Brick & Product Manufacturing
  • Construction
  • Hardware and Plumbing and Heating Equipment and Supplies Wholesalers
  • Lumber and Other Construction Materials Wholesalers
  • Lumber Wholesaling
  • Ready-Mix Concrete Manufacturing
  • Roofing, Siding & Insulation Wholesaling
  • Sawmills & Wood Production
  • Stone, Concrete & Clay Wholesaling

  • Products & Services
  • Vinyl siding exterior homes
  • Stucco exterior homes
  • Brick exterior homes
  • Fiber cement exterior homes
  • Wood exterior homes
  • Other exterior homes
  • Chart: Home Builders Industry Products and Services Segmentation

  • Demand Determinants
  • Short-term demand determinants
  • Long-term underlying demand

  • Major Markets
  • Private-sector clients: property developers
  • Private-sector clients: households
  • State or locally funded projects
  • Federally funded projects
  • Chart: Major Market Segmentation for the Home Builders Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Home Builders

  • Basis of Competition
  • Marketing
  • Level and trend of competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home Builders Industry

  • Industry Globalization
    NVR Inc.,
  • Table: NVR Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Home Builders Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Home Builders Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Housing Starts (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Adjustable Rate Mortgage (Arm)
  • A type of mortgage in which the interest rate that is paid on the outstanding balance is variable.
  • Developer
  • An enterprise that prepares a real estate site for residential or commercial use, raising capital, securing zoning approvals and hiring contractors to design, construct and develop property.
  • General Contractor
  • An individual or company that manages the construction of a structure for a property owner or developer. A general contractor may retain its own labor force or use subcontractors for projects.
  • Housing Starts
  • The number of new homes under construction during a specified period of time and a key economic indicator of the health of the housing market.
  • Mortgage-Backed Securities (Mbs)
  • An asset-backed security or debt obligation that is secured by a mortgage or collection of mortgages.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Home Builders contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Home Builders:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Home Builders market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Home Builders, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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