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Housing Developers in the US - Market Research Report (2014-2029)

Matty O'Malley Matty O'Malley New York, United States Last Updated: October 2024 NAICS 23611c

Revenue

$192.7bn

2024

$192.7bn

Past 5-Year Growth

Profit

$XX.Xbn

Employees

156k

Businesses

63,660

Wages

$XX.Xbn

Housing Developers in the US industry analysis

Despite the pandemic's broader economic disruptions, low interest rates in 2020 initially fueled a housing market boom driven by work-from-home orders and a shift toward residential construction. This surge was a lifeline for builders amid economic turbulence. However, the tide turned in 2022 and 2023 as the Federal Reserve's interest rate hikes curbed housing investments, dampening consumer enthusiasm and slowing residential construction activity. Interest rate cuts in late 2024 will begin to improve new construction activity. Overall, revenue has been falling at a CAGR of 1.6% over the past five years to total an estimated $192.7 billion in 2024, including an estimated dip of 0.8% in 2024 alone, as profit remains deflated at 5.2% amid higher material and labor costs. Single-family home development climbed in more affordable and less densely populated areas in 2024 but high vacancy rates slowed new multifamily development. 

Trends and Insights

  • High interest rates hurt housing developers' expansion. Earlier, lower rates spurred growth, yet recent increases have notably affected developers' earnings and buyer tendencies. Rate cuts in 2024 will begin to reverse this trend.
  • Single-family home development has picked up. While development slowed in 2022 and 2023 because of high interest rates, housing developers have built single-family in less populated areas with lower costs to attract customers in 2024.
  • Housing developers are flocking to populated areas. Leading states like Texas and California are experiencing an upswing in household formation because of increasing migrations from quieter, less populated regions.
  • There is fierce competition among housing developers. Housing developers look to differentiate themselves through location, pricing, product uniqueness, quality and reputation.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 1.6 % over the past five years, to reach an estimated $192.7bn in 2024.

Trends and Insights

Borrowing environments have dictated housing developers’ performance

  • Despite deteriorating broader economic conditions, low interest rates in 2020, coupled with work-from-home orders, enabled the housing market to flourish as residential construction was encouraged. This influx of demand helped support housing developers even during the turbulent times of the pandemic. Consumer confidence returning to growth in 2021 bolstered home-building activity, providing the most substantial expansion for home builders over the past five years. Nonetheless, interest rate hikes have led to contractions.
  • Additional trends and insights available with purchase
Housing Developers in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Improving economic conditions will benefit housing developers

  • Continued interest rate cuts by the Federal Reserve will greatly benefit housing developers. Not only will these cuts reduce interest payments for companies, but they will also incentivize downstream customers to purchase new housing. Interest rate cuts easing credit requirements will give housing developers a boost, spurring new growth as consumers have greater access to these homes.

Biggest companies in the Housing Developers in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Lennar Corp
37,513.8
5,672.2
15.1
Pultegroup Inc.
17,331.1
3,994.9
23.1
D.R. Horton, Inc.
3,445.0
509.5
14.8

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Housing Developers in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Single-family detached homes, Single-family attached homes and Multifamily homes. Single-family detached homes is the largest segment of the Housing Developers in the US.

Trends and Insights

Single-family home construction has begun to recover

  • This segment consists of single-family detached homes, free-standing residential buildings that do not share an inside wall with another dwelling, intended to be occupied by just one household.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

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

What's included in this industry?

Development of detached single-family homes on own land for sale Development of attached single-family homes on own land for saleDevelopment of multi-family homes on own land for sale

Companies

Lennar CorpPultegroup Inc.D.R. Horton, Inc.

Purchase this report to view all 3 major companies in this industry.

Related Terms

HOUSING STARTSGENERAL CONTRACTOR (GC)RESIDENTIAL BUILDINGTAX CREDIT

Industry Code

NAICS 2017

NAICS 236117 - Housing Developers in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

High interest rates hurt housing developers' expansion. Earlier, lower rates spurred growth, yet recent increases have notably affected developers' earnings and buyer tendenc...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Single-family home development has picked up. While development slowed in 2022 and 2023 because of high interest rates, housing developers have built single-family in less po...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Housing developers are flocking to populated areas. Leading states like Texas and California are experiencing an upswing in household formation because of increasing migratio...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

There is fierce competition among housing developers. Housing developers look to differentiate themselves through location, pricing, product uniqueness, quality and reputatio...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

D.R. Horton's deal with Plantd marks a significant step towards sustainable building practices. Using carbon-negative panels from fast-growing grass ensures greater supply ch...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Lennar Corp's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Pultegroup Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of D.R. Horton, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Lennar Corp, and factors influencing its performance in the industry
  • Description and key data for Pultegroup Inc., and factors influencing its performance in the industry
  • Description and key data for D.R. Horton, Inc., and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Housing developers primarily rely on public aid. Key assistance comes via Housing and Urban Development Programs and government subsidies that offer developers tax breaks.

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Surging purchase costs are eating into developers' profits. Developers who are unable to pass on these higher expenses have seen a drop in their profit.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Housing Developers in the US industry in United States in 2024?

The market size of the Housing Developers in the US industry in United States is $192.7bn in 2024.

How many businesses are there in the Housing Developers in the US industry in 2024?

There are 63,660 businesses in the Housing Developers in the US industry in United States, which has grown at a CAGR of 0.4 % between 2019 and 2024.

Has the Housing Developers in the US industry in United States grown or declined over the past 5 years?

The market size of the Housing Developers in the US industry in United States has been declining at a CAGR of 1.6 % between 2019 and 2024.

What is the forecast growth of the Housing Developers in the US industry in United States over the next 5 years?

Over the next five years, the Housing Developers in the US industry in United States is expected to grow.

What are the biggest companies in the Housing Developers in the US market in United States?

The biggest companies operating in the Housing Developers market in United States are Lennar Corp, Pultegroup Inc. and D.R. Horton, Inc.

What does the Housing Developers in the US in United States include?

Development of detached single-family homes on own land for sale and Development of attached single-family homes on own land for sale are part of the Housing Developers in the US industry.

Which companies have the highest market share in the Housing Developers in the US in United States?

The company holding the most market share in United States is Lennar Corp.

How competitive is the Housing Developers in the US industry in United States?

The level of competition is high and steady in the Housing Developers in the US industry in United States.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Home Builders in the US
  • Apartment & Condominium Construction in the US

Complementors

  • Land Development in the US
  • Architects in the US

International industries

  • Homebuilders in Canada
  • House Construction in Australia
  • House Construction in New Zealand
  • Residential Building Construction in the UK
  • Building Construction in Ireland

View all industries in United States

Methodology

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Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

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