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        Residential Construction Contractors Industry Profile

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        Excerpt from Residential Construction Contractors Industry Profile

        Companies in this industry construct and renovate residential buildings. Major companies include DR Horton, KB Home, Lennar, NVR Construction Limited, and PulteGroup (all based in the US), as well as Country Garden (China), Daiwa House (Japan), and Desarrolladora Homex (Mexico).

        Global construction of new housing is anticipated to grow by 0.9% per year through 2024, reaching annual housing production of nearly 60 million units, according to Freedonia. Long-term growth in the industry will be driven by factors including growing urban population levels, low interest and mortgage rates, rising living standards within the Asia/Pacific and Africa/Mideast regions, and increasing subsidized housing to reduce informal dwellers.

        The US residential construction contracting industry includes about 170,000 establishments (single-location companies and units of multi-location companies) with annual revenue of about $340 billion.

        Builders of both single-family and multifamily housing are included in the industry, as are residential remodelers. The industry includes general contractors, who build on land owned by others, and operative builders, who build on land they own or control. Specialty trade contractors such as plumbers and electricians, who often work as subcontractors for residential construction contractors or operative builders, are covered in separate profiles.

        COMPETITIVE LANDSCAPE

        Demand is driven by population growth and economic growth. The profitability of individual companies depends on efficient operations and securing favorable building locations. Large builders enjoy economies of scale in purchasing. Small companies can compete effectively by specializing in ...

         
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