Open house: The industry has exhibited strong growth rates as housing sales increased

Operators in the Housing Developers industry in the United States construct new homes on land that is either owned or controlled by the builder rather than by the buyer or investor. Typically, trends in demand for housing stock are dictated by overall economic performance, with consumers demanding new and more luxurious homes during times of prosperity. Economic conditions remained volatile post-recession, particularly within the residential sector. However, as recovery gained steamed, growth for the overall sector and the Housing Developers industry both returned strongly. Over the five years to 2023, growth in the new housing construction market is expected to continue, albeit at a slower pace compared with the previous period...purchase to read more.

Industry Statistics & Market Size
Revenue
$164bn
Annual Growth 13-18
7.7%
Forecast Growth 18-23
Profit
Employment
154,698
Businesses
47,997

Industry Threats & Opportunities

  • Improving employment, rising per capita disposable income and renewed access to credit helped drive new growth
  • Consumers are turning to developers to build their dream homes
  • Growth in the new housing construction market is expected to continue
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2018, the Housing Developers industry has experienced moderately volatile conditions as economic performance recovers from the collapse of the housing system and subsequent recession in the United States. Since the burst of the real estate bubble, high unemployment has continued to fall, disposable income has become more robust and a low interest rate has led to strong growth over the past five years. Following the housing market crisis, the federal government intervened with the conservatorship of Fannie Mae and Freddie Mac, which are two of the largest providers of consumer mortgages, as well as stimulus packages such as first homeownership packages. The...purchase to read more.

    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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    What's in this report

    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 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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

  • 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 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 27 to 36
  • Consumers aged 37 to 51
  • Consumers aged 62 and older
  • Consumers aged 52 to 61
  • Consumers aged 26 and younger
  • Chart: Major Market Segmentation for the Housing Developers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • 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
    D.R. Horton Inc., Lennar Corporation, PulteGroup Inc.,
  • Table: D.R. Horton Inc. - financial performance
  • Table: Lennar Corporation - financial performance
  • Table: PulteGroup Inc. - financial performance

  • 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
    Table: Industry Data for the Housing Developers 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
    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.
  • What Our Customers Say

    Why buy this report?

    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.

    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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