Beazer Homes - Competitors

Beazer Homes Competition

Now Viewing Beazer Homes's competition in: Residential Real Estate Construction (primary)

Recent Developments

Construction Costs Rising - Weakness in the US housing market hasn't led to major reductions in the cost of construction materials. While lumber prices were 2.1 percent lower in June 2008 compared to the same month in 2007, according to the Engineering News-Record, steel prices rose 8.7 percent and cement prices, about 1 percent. Overall construction costs rose 3.1 percent.

Flight to Suburbs may Reverse - Rising gas prices may lead to slowing residential construction in suburban areas of the US due to the high cost of driving to urban job centers. Homes beyond the urban core of metropolitan areas, including Atlanta, Philadelphia, San Francisco, and Minneapolis, have been falling in value faster than those within the core, according to Moody's Economy.com. Many experts predict that rising gas prices will result in urban revitalization at the expense of suburban areas.

Builder Says No Housing Recovery Until 2010 - The US housing market may not recover until 2010, according to homebuilder DR Horton. Falling home values will keep many potential buyers from selling existing properties. Many builders have increased incentives and discounts to offset fears of falling home prices, but year-over-year new home sales were still declining in mid-2008.

Competitive Landscape

Demand for new housing depends on population growth and is linked to low interest rates. Large builders have some advantages in purchasing and marketing, but building methods are essentially the same for large or small builders. While larger builders have efficiencies because they can repeatedly build the same home models, they generally develop projects on large pieces of land. Small builders, therefore, build most homes in dense urban markets where little land is available.

Full Industry Overview For Residential Real Estate Construction

Residential Real Estate Construction Industry Forecast

from Hoover's/D&B subsidiary First Research

The value of US new residential home construction and renovations is forecast to grow at an annual compounded rate of 2.1 percent between 2007 and 2012.

Residential Construction Growth Drops and Recovers

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.