5 takeaways from the Housing Giants report

We at Professional Builder have always taken pride in the fact that our editorial coverage is tailored to meet the needs of not only the large national and regional builders, but also the small- and mid-sized firms. The fact is, roughly seven of every 10 homes constructed in the U.S. each year are built by small, local builders. They are the backbone of this great industry.

That being said, it is critically important to look to the “big guys” periodically for ideas, strategies, and inspiration. These firms often have the resources to try fresh approaches and can afford to take a hit if an idea or strategy does not pan out. Also, by tracking the financial performance of large builders, we can offer a glimpse at the key trends and shifts in the market.

To that point, we present the findings of our annual Housing Giants report. As always, the report offers a wealth of takeaways. Here are a few that caught my eye:

Housing Giants Report Contents

• Introduction
• Housing Giants Rankings
• 5 Takeaways From the Housing Giants Report
• The Innovators: Great Ideas From the Giants
• Next Move: Giants Share Their Top Opportunities for 2012 and Beyond
• Sales Strategies: What’s Working for the Giants

1. 2012 looking much brighter. We asked each Giant to submit their revenue projection for 2012 based on sales from the first few months of the year. Looking at the results, it’s safe to say that 2012 is shaping up to be much more lucrative than last year. Of the 155 firms that submitted their forecast, the majority (118 firms) are projecting double-digit revenue growth in 2012, while only seven firms are expecting a drop.

2. No love for N.D. North Dakota’s oil boom is driving tremendous demand for new housing, especially in the western part of the state. Yet only one Giant reported building homes in the state last year. With no oil-production slowdown in sight, the nation’s third least-populated state may offer opportunity for builders looking to expand.

3. Green is rampant. Of the 235 firms that made this year’s Housing Giants ranking, more than 55 percent said they built at least one certified-green home in 2011, and nearly a third said they built more than 100 green homes last year.

4. Non-Giants take share. While the Giants represented a sizable slice of the total home-building pie in 2011, their piece was a bit smaller versus 2010. In 2011, the Giants built 29.5 percent of all new homes in the U.S., down from 30.2 percent in 2010.

5. Suburbia still rules. With all the talk of infill and urban housing, suburban planned projects still make up the vast majority of new-home construction (73.6 percent in 2011).

For more results from the Housing Giants report, visit www.HousingZone.com/2012-HousingGiants.