Overview

Open house: Despite economic recovery, increases in interest and mortgage rates may slow growth slightly

IBISWorld’s Housing Developers Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$141bn
Annual Growth
12-17
9.8%
Annual Growth
17-22
Profit
Employment
128,063
Business
15,702

Industry Threats & Opportunities

  • Improving employment, rising per capita disposable income and renewed access to credit helped drive new growth
  • Wealthier consumers’ preferences are driving up the price of each home
  • Rising consumer confidence and per capita disposable income will fuel new residential construction
  • Industry Analysis & Industry Trends

    Over the five years to 2017, improving employment conditions, rising per capita disposable income and renewed access to credit helped drive new growth. Furthermore, interest rates hit historic lows and encouraged investment as the cost of borrowing became relatively inexpensive. Recently, the industry has exhibited strong growth rates as housing sales increase in tandem with rises in the average selling price. Over the five years to 2022, recovery in the new housing construction market is expected to continue, albeit at a slower pace compared with the previous period, as potential further interest rate increases, along with the expected increase in the 30-year conventional mortgage rate, may erode new home affordability and hamper demand for housing starts.

    Industry Report - Starting a New Business Chapter

    The Housing Developers industry in the United States has few barriers to the entry of new competitors, other than the need to obtain land for development; however, because competition is significant and largely based on reputation and marketing, many new competitors find it difficult to quickly establish a foothold in the market. To maintain long-term participation in this industry, operators must establish a solid reputation among several different interested parties, including potential buyers, subcontractors, suppliers, local government, financial institutions and subcontractors.

    Additional Insights for the Housing Developers Industry

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

  • Strong project management skills
  • Capacity to objectively assess new investments
  • Highly trained workforce
  • IBISWorld analysts also discuss how external factors such as year conventional mortgage rate and National unemployment rate in the Housing Developers industry impact industry performance..

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    Industry Products

    What is the Housing Developers Industry?

    This industry is primarily engaged in the development of new homes on land that is owned or controlled by the builder rather than the homebuyer or investor. The industry includes establishments that build single-family or multifamily homes. These establishments are often referred to as merchant or speculative builders, but they are also known as production for-sale builders.

    Industry Products
    Single-family detached homes
    Single-family attached homes
    Multifamily homes of two to nine units
    Multifamily homes of 10 or more units
    Industry Activities
    Development of detached single-family homes on own land for sale
    Development of attached single-family homes on own land for sale (townhouses and row houses)
    Development of speculative condominiums
    Development of speculative apartments (high-rise and low-rise buildings)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • year conventional mortgage rate
  • National unemployment rate
  • Number of households
  • Per capita disposable income
  • Homeownership rate
  • Population

  • Current Performance
  • Credit dependency
  • Growing home prices
  • Strong conditions attract new entrants
  • Chart: Revenue Growth

  • Industry Outlook
  • Short-term surge, long-term slow down
  • Homeownership rates decline further
  • Breaking from the pack
  • Industry expansion
  • Table: Housing Developers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Housing Developers Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Home Builders
  • Finance and Insurance
  • Real Estate Investment Trusts
  • Consumers

  • Key Selling Industries
  • Architects
  • Construction
  • Engineering Services
  • Finance and Insurance
  • Landscape Design

  • Products & Services
  • Single-family detached homes
  • Multifamily homes of two to nine units
  • Multifamily homes of 10 or more units
  • Single-family attached homes
  • Chart: Housing Developers Industry Products and Services Segmentation

  • Demand Determinants
  • Short-term demand
  • Long-term demand
  • Housing preferences

  • Major Markets
  • Consumers aged 25 to 34
  • Consumers aged 35 to 44
  • Consumers aged 45 to 54
  • Consumers aged 55 to 64
  • Consumers aged 65 and older
  • Consumers aged 24 and younger
  • Chart: Major Market Segmentation for the Housing Developers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Housing Developers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Housing Developers Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Housing Developers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Housing Developers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Housing Starts (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    General Contractor
  • An individual or company that manages the construction of a building or structure for a property owner or developer. A GC 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.
  • Residential Building
  • A building primarily intended for housing and consisting of one or more dwelling units, a house or other building in which people live.
  • Tax Credit
  • An amount of money that can be offset against a tax liability.
  • Why buy this report?

    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 Housing Developers:
    • 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 Housing Developers 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 Housing Developers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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