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Top 10 Builder Market Share Across Metros

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An earlier post described how the top 10 builders in the country captured a record 44.7% of new single-family closings in 2024. BUILDER Magazine has now released additional data on the top ten builders within each of the 50 largest new home markets in the U.S., ranked by single-family permits. It is important to note that this post does not focus on the top ten largest home builders nationally; instead, it analyzes the top ten list within each of the largest 50 new housing markets.

The 2024 data show that the top 10 builder concentration in the 50 largest markets ranged from 38.9% in Kansas City, MO-KS to 97.8% in Cincinnati, OH. In 11 metro areas, the top ten builders’ market share exceeded 90%. Across all 50 metro areas, the average market share of the top 10 builders was 79.3%, up from 78.2% in 2023.  

Looking at the results on a map reveals that southern California, South Carolina, Florida, and parts of the Midwest include multiple highly concentrated markets, while Texas and the Northwest include markets with lower levels of concentration (figure 1).

Lennar and D.R. Horton each made the top ten builder list in 46 markets, the most among all builders. PulteGroup was next with 36 metro markets, followed by NVR and Meritage Homes with 22 and 20 metro markets, respectively.

From 2023 to 2024, 27 metro areas saw an increase in their top 10 builders’ market share, compared with 36 increases from 2022 to 2023. Seven metro areas experienced a double-digit increase in 2024:

Oklahoma City, OK (+20.7 percentage points, 82.8%)

Atlanta-Sandy Springs-Alpharetta, GA (+14.7 percentage points, 76.8%)

Punta Gorda, FL (+11.5 percentage points, 85.9%)

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD (+10.7 percentage points, 87.5%)

Greenville-Anderson, SC (+10.6 percentage points, 89.3%)

Salt Lake City, UT (+10.5 percentage points, 69.8%)

Charleston-North Charleston, SC (+10.4 percentage points, 92.3%)

Meanwhile, 20 metro areas saw a decline in their top 10 builders’ market share from 2023 to 2024, up from only 9 decreases from 2022 to 2023. The largest decreases were seen in:

Miami-Fort Lauderdale-Pompano Beach, FL (-18.1 percentage points, 72.4%)

Los Angeles-Long Beach-Anaheim, CA (-14.7 percentage points, 75.6%)

Orlando-Kissimmee-Sanford, FL (-11.6 percentage points, 76.8%)

Tucson, AZ (-10.4 percentage points, 82.4%

Of the remaining three largest markets, Cape Coral-Fort Myers, FL saw no change in its top ten builder concentration (96.2%) from 2023 to 2024, while Fresno, CA and Spartanburg, SC are new to the top 50 market list in 2024.

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In Research & Trends

Builder Confidence Edges Up in July

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Builder confidence for future sales expectations received a slight boost in July with the extension of the 2017 tax cuts, but elevated interest rates and economic and policy uncertainty continue to act as headwinds for the housing sector.

Builder confidence in the market for newly built single-family homes was 33 in July, up one point from June, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Builder sentiment has now been in negative territory for 15 consecutive months.

The July HMI survey revealed that 38% of builders reported cutting prices in July, the highest percentage since NAHB began tracking this figure on a monthly basis in 2022. This compares with 37% of builders who reported cutting prices in June, 34% in May and 29% in April. Meanwhile, the average price reduction was 5% in July, the same as it’s been every month since last November. The use of sales incentives was 62% in July, unchanged from June.

Consistent with ongoing weakness for the HMI, single-family housing starts will post a decline in 2025 due to ongoing housing affordability challenges per the latest NAHB forecast. Single-family permits are down 6% on a year-to-date basis and builder traffic in the HMI is at a more than two-year low.

Derived from a monthly survey that NAHB has been conducting for more than 40 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions rose one point in July to a level of 36 while the component measuring sales expectations in the next six months increased three points to 43. The gauge charting traffic of prospective buyers posted a one-point decline to 20, the lowest reading since end of 2022.

Looking at the three-month moving averages for regional HMI scores, the Northeast increased two points to 45, the Midwest held steady at 41, the South dropped three points to 30 and the West declined three points to 25.

The HMI tables can be found at nahb.org/hmi.

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In Research & Trends

Top Ten Builder Share Rises Again in 2024

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The top ten builders captured a record 44.7% of all new U.S. single-family home closings in 2024, up 2.4 percentage points from 2023 (42.3%). This is the highest share ever captured by the top ten builders since NAHB began tracking BUILDER magazine data on new single-family home closings in 1989. The 2024 share constitutes 306,932 closings out of 686,000 new single-family houses sold in 2024. However, closings by the top 10 builders only represent 30.1% of new single-family home completions, a wider measure of home building that covers not-for-sale home construction. Also of note, the top 15 builders accounted for more than half of all closings (51%) for the first time ever in 2024.

The top ten builder share has increased significantly –albeit unevenly– in the last 35 years. In 1989, the top ten builders accounted for only 8.7% of single-family home closings. By 2000, the share had more than doubled to 18.7%, growing to 28.2% by 2006 and 31.5% by 2018. After slight declines in 2019 and 2020, the share exceeded 40% for the first time in 2022 (43.5%) and reached a record high in 2024 (44.7%). (Figure 1).

Meanwhile, the top ten builder share by completions, has also trended upward, with a share of just 5.6% in 1989. It reached double digits for the first time in 1999 (11.3%) and rose to a cycle high of 17.9% in 2006. The share broke the 20% mark for the first time in 2015 (21.0%) and has continued to trend upward since, reaching an all-time high of 30.1% in 2024 (Figure 1).

The top five highest producing builders did not change from 2023 to 2024, with D.R. Horton maintaining its position as America’s largest single-family home builder. D.R. Horton captured 13.6% of the market with 93,311 closings, marking a fourth consecutive year with a market share above 10%, and a 23rd consecutive year atop the list. Results also show that 2024 marked the third year in a row where the top three builders accounted for more than a quarter (29.9%) of overall closings, with Lennar and PulteGroup achieving 11.7% and 4.6%, respectively. With 3.3% and 2.3% of overall closings, NVR and Meritage Homes ranked fourth and fifth on the list, respectively.

Notably, SH Residential Holdings (U.S. subsidiary of Sekisui House, a Japanese homebuilder, who acquired M.D.C. Holdings in 2024) broke into the top ten in 2024, ranking sixth on the list with 2.2% of the market. Clayton Properties Group, ranking 8th in 2023, fell out of the top 10 for the first time since 2019. KB Home (2.1%), Taylor Morrison (1.9%), Century Communities (1.6%), and Toll Brothers (1.6%) round out the top 10 builders for 2024 (Figure 2).

Builder Magazine also released Local Leaders data on the top 10 builders in the top 50 largest new-home markets in the U.S. where ranking is determined by the number of single-family permits, which NAHB will analyze in a later post.

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In Research & Trends

Builder Sentiment at Third Lowest Reading Since 2012

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In a further sign of declining builder sentiment, the use of price incentives increased sharply in June as the housing market continues to soften.

Builder confidence in the market for newly built single-family homes was 32 in June, down two points from May, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). The index has only posted a lower reading twice since 2012 – in December 2022 when it hit 31 and in April 2020 at the start of the pandemic when it plunged more than 40 points to 30.

Buyers have increasingly moved to the sidelines due to elevated mortgage rates and tariff and economic uncertainty. Consequently, the latest HMI survey revealed that 37% of builders reported cutting prices in June, the highest percentage since NAHB began tracking this figure on a monthly basis in 2022. This compares with 34% of builders who reported cutting prices in May and 29% in April. Meanwhile, the average price reduction was 5% in June, the same as it’s been every month since last November. The use of sales incentives was 62% in June, up one percentage point from May.

Rising inventory levels and prospective home buyers who are on hold waiting for affordability conditions to improve are resulting in weakening price growth in most markets and generating price declines for resales in a growing number of markets. Given current market conditions, NAHB is forecasting a decline in single-family starts for 2025.

Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three of the major HMI indices posted losses in June. The HMI index gauging current sales conditions fell two points in June to a level of 35, the component measuring sales expectations in the next six months dropped two points lower to 40 while the gauge charting traffic of prospective buyers posted a two-point decline to 21, the lowest reading since November 2023.

Looking at the three-month moving averages for regional HMI scores, the Northeast fell one point to 43, the Midwest moved one point higher to 41, the South dropped three points to 33 and the West declined four points to 28. HMI tables can be found at nahb.org/hmi.

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In Research & Trends

Soft Spring Selling Season Takes a Toll on Builder Confidence

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Builder confidence fell sharply in May on growing uncertainties stemming from elevated interest rates, tariff concerns, building material cost uncertainty and the cloudy economic outlook. However, 90% of the responses received in May were tabulated prior to the May 12 announcement that the United States and China agreed to slash tariffs for 90 days to allow trade talks to continue.

Builder confidence in the market for newly built single-family homes was 34 in May, down six points from April, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This ties the November 2023 reading and is the lowest since the index hit 31 in December 2022.

The spring home buying season has gotten off to a slow start as persistent elevated interest rates, policy uncertainty and building material cost factors hurt builder sentiment in May. Builders expect future trade negotiations and progress on tax policy will help stabilize the economic outlook and strengthen housing demand. Initial trade arrangements with the United Kingdom and China are a welcome development for the macroeconomy. Still, the overall actions on tariffs in recent weeks have had a negative impact on builders, as 78% reported difficulties pricing their homes recently due to uncertainty around material prices.

The latest HMI survey also revealed that 34% of builders cut home prices in May, up from 29% in April and the highest level since December 2023 (36%). Meanwhile, the average price reduction was 5% in May, unchanged from the previous month. The use of sales incentives was 61% in May, the same rate as the previous month.

All three of the major HMI indices posted losses in May. The HMI index gauging current sales conditions fell eight points in May to a level of 37, the component measuring sales expectations in the next six months edged one-point lower to 42 while the gauge charting traffic of prospective buyers dropped two points to 23.

Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Looking at the three-month moving averages for regional HMI scores, the Northeast fell three points to 44, the Midwest moved one point lower to 40, the South dropped two points to 37 and the West posted a two-point decline to 33.

The HMI tables can be found at nahb.org/hmi.

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In Home Improvement

10 Times to Hire a Builder

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Wondering if it’s time to hire a homebuilder? Some builders work on custom homes with individual clients in collaboration with the homeowner’s architect, while others are also developers, purchasing land and creating communities of customizable homes. If you’re thinking of building a home or undertaking a large-scale remodel, a builder could be a key member of your team. Here are 10 times it makes sense to work with a homebuilder to bring your dream project to life.

(If you want to learn about other home pros, go to the bottom of this story for links to other stories in our 10 Times to Hire series.)



This article was originally published by a www.houzz.com . Read the Original article here. .

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In Research & Trends

Builder Confidence Levels Indicate Slow Start for Spring Housing Season

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Growing economic uncertainty stemming from tariff concerns and elevated building material costs kept builder sentiment in negative territory in April, despite a modest bump in confidence likely due to a slight retreat in mortgage interest rates in recent weeks.

Builder confidence in the market for newly built single-family homes was 40 in April, edging up one point from March, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

The March dip in mortgage rates may have stimulated some sales activity in recent weeks. However, builders have expressed growing uncertainty over market conditions as tariffs have increased price volatility for building materials at a time when the industry continues to grapple with labor shortages and a lack of buildable lots.

Policy uncertainty is making it difficult for builders to accurately price homes and make critical business decisions. The April HMI data indicates that the tariff cost effect is already taking hold, with the majority of builders reporting cost increases on building materials due to tariffs.

When asked about the impact of tariffs on their business, 60% of builders reported their suppliers have already increased or announced increases of material prices due to tariffs. On average, suppliers have increased their prices by 6.3% in response to announced, enacted, or expected tariffs. This means builders estimate a typical cost effect from recent tariff actions at $10,900 per home.

The latest HMI survey also revealed that 29% of builders cut home prices in April, unchanged from March. Meanwhile, the average price reduction was 5% in April, the same rate as the previous month. The use of sales incentives was 61% in April, up from 59% in March.

Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions rose two points in April to a level of 45. The gauge charting traffic of prospective buyers increased one point to 25 while the component measuring sales expectations in the next six months fell four points to 43.

Looking at the three-month moving averages for regional HMI scores, the Northeast fell seven points in April to 47, the Midwest moved one point lower to 41, the South dropped three points to 39 and the West posted a two-point decline to 35.

The HMI tables can be found at nahb.org/hmi.

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In Research & Trends

Builder Confidence Falls on Cost Uncertainty

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Economic uncertainty, the threat of tariffs and elevated construction costs pushed builder sentiment down in March even as builders express hope that a better regulatory environment will lead to an improving business climate.

Builder confidence in the market for newly built single-family homes was 39 in March, down three points from February and the lowest level in seven months, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

Builders continue to face elevated building material costs that are exacerbated by tariff issues, as well as other supply-side challenges that include labor and lot shortages. At the same time, builders are starting to see relief on the regulatory front to bend the rising cost curve, as demonstrated by the Trump administration’s pause of the 2021 IECC building code requirement and move to implement the regulatory definition of ‘waters of the United States’ under the Clean Water Act consistent with the U.S. Supreme Court’s Sackett decision.

Construction firms are facing added cost pressures from tariffs. Data from the HMI March survey reveals that builders estimate a typical cost effect from recent tariff actions at $9,200 per home. Uncertainty on policy is also having a negative impact on home buyers and development decisions.

The latest HMI survey also revealed that 29% of builders cut home prices in March, up from 26% in February. Meanwhile, the average price reduction was 5% in March, the same rate as the previous month. The use of sales incentives was 59% in March, unchanged from February.

Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions fell three points to 43 in March, its lowest point since December 2023. The gauge charting traffic of prospective buyers dropped five points to 24 while the component measuring sales expectations in the next six months held steady at 47.

Looking at the three-month moving averages for regional HMI scores, the Northeast fell three points in March to 54, the Midwest moved three points lower to 42, the South dropped four points to 42 and the West posted a two-point decline to 37. The HMI tables can be found at nahb.org/hmi.

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Builder Confidence Falls on Tariff and Housing Cost Concerns

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Builder sentiment fell sharply in February over concerns on tariffs, elevated mortgage rates and high housing costs.

Builder confidence in the market for newly built single-family homes was 42 in February, down five points from January and the lowest level in five months, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

While builders hold out hope for pro-development policies, particularly for regulatory reform, policy uncertainty and cost factors created a reset for 2025 expectations in the most recent HMI. Uncertainty on the tariff front helped push builders’ expectations for future sales volume down to the lowest level since December 2023.

With 32% of appliances and 30% of softwood lumber coming from international trade, uncertainty over the scale and scope of tariffs has builders further concerned about costs. Reflecting this outlook, builder responses collected prior to a pause for the proposed tariffs on goods from Canada and Mexico yielded a lower HMI reading of 38, while those collected after the announced one-month pause produced a score of 44. Addressing the elevated pace of shelter inflation requires bending the housing cost curve to enable adding more attainable housing.

Incentive use may also be weakening as a sales strategy as elevated interest rates reduce the pool of eligible home buyers. The latest HMI survey also revealed that 26% of builders cut home prices in February, down from 30% in January and the lowest share since May 2024. Meanwhile, the average price reduction was 5% in February, the same rate as the previous month. The use of sales incentives was 59% in February, down from 61% in January.

Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

All three of the major HMI indices posted losses in February. The HMI index gauging current sales conditions fell four points to 46, the component measuring sales expectations in the next six months plunged 13 points to 46, and the gauge charting traffic of prospective buyers posted a three-point decline to 29.

Looking at the three-month moving averages for regional HMI scores, the Northeast fell three points in February to 57, the Midwest moved two points lower to 45, the West edged one-point lower to 39 and the South held steady at 46. The HMI tables can be found at nahb.org/hmi.

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Builder Confidence Edges Up Even as Market Risk Concerns Rise

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Builder sentiment edged higher to begin the year on hopes for an improved economic growth and regulatory environment. At the same time, builders expressed concerns over building material tariffs and costs and a larger government deficit that would put upward pressure on inflation and mortgage rates.

Builder confidence in the market for newly built single-family homes was 47 in January, up one point from December, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

Builders are facing continued challenges for housing demand in the near-term, with mortgage rates up from near 6.1% in late September to above 6.9% today. Land is expensive and financing for private builders remains costly. However, there is hope that policymakers are taking the impact of regulatory hurdles seriously and will make improvements in 2025.

NAHB is forecasting a slight gain for single-family housing starts in 2025, as the market faces offsetting upside and downside risks from an improving regulatory outlook and ongoing elevated interest rates,. And while ongoing, but slower, easing from the Federal Reserve should help financing for private builders currently squeezed out of some local markets, builders report cancellations are climbing as a direct result of mortgage rates rising back up near 7%.

The latest HMI survey also revealed that 30% of builders cut home prices in January. This share has been stable between 30% and 33% since last July. Meanwhile, the average price reduction was 5% in January, the same rate as in December. The use of sales incentives was 61% in January. This share has remained between 60% and 64% since last June.

Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI index gauging current sales conditions rose three points to 51 and the gauge charting traffic of prospective buyers posted a two-point gain to 33. The component measuring sales expectations in the next six months fell six points to 60 because of the elevated interest rate environment. While this serves as a cautionary note, the future sales component is still the highest of the three sub-indices and well above the breakeven level of 50.

Looking at the three-month moving averages for regional HMI scores, the Northeast increased five points to 60, the Midwest moved one point higher to 47, the South posted a one-point gain to 46 and the West fell one point to 40. The HMI tables can be found at nahb.org/hmi.

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