Residential Construction Contractors Industry Overview

Excerpt from Residential Construction Contractors Report

Companies in this industry construct, remodel, or renovate residential buildings. Major companies include DR Horton, KB Home, Lennar, and PulteGroup (all in the US), as well as Daiwa House (Japan), Desarrolladora Homex (Mexico), Gafisa (Brazil), Sun Hung Kai Properties (China), and Taylor Wimpey (UK).

Competitive Landscape

Demand for new housing depends on population growth and is linked to interest rates. The profitability of individual companies depends on efficient operations and securing favorable building locations. Large builders have some advantages in purchasing and marketing. Small companies can compete effectively by specializing. The industry is fragmented.

Products, Operations & Technology

Major products are single family homes and multifamily buildings. Of the homes built in recent years, about 75 percent are single family and 25 percent are units in large apartment-style buildings. Multifamily units can be either apartments or condos. Home remodeling accounts for about 15 percent of industry revenue. Companies generally specialize in either single family or multifamily work.