The history of single-family homes in suburban American communities is largely a tale of unprecedented growth and breath-taking expansion. You see, following the World War II boom, swarms of people moved from urban areas in search of bigger homes, greener spaces, and a more tranquil lifestyle, and as a result, single-family homes became the customary residence, with production homebuilders leading the charge in building the vast majority of these new homes.

Presently, production homebuilders continue to play a significant part in the sector, with many of the top ten Fortune 500 homebuilders constructing tens of thousands of homes annually. These homebuilders produce billions of dollars in revenue and offer a variety of homes to American families, ranging from budget-friendly starter homes to luxurious mansions.

The top ten homebuilders in the United States, as ranked by the Fortune 500, encompass D.R. Horton, Lennar, PulteGroup, NVR, KB Home, Taylor Morrison, Meritage Homes, Toll Brothers, Beazer Homes, and M/I Homes. These enterprises construct a broad range of houses, including single-family detached homes, townhouses, and apartments. They operate in various markets, from urban to suburban and rural areas, and often specialize in specific types of homes or client segments.

According to recent data, some of the top cities in the United States for new home building are Houston, Dallas, and Phoenix. These cities are experiencing high levels of growth and development, resulting in a surge in demand for new housing. Additionally, these areas offer a favorable economic climate, strong job markets, and relatively affordable housing prices compared to other major metropolitan areas.

As for the largest master planned community in the United States, that title belongs to The Woodlands in Texas. Located just north of Houston, The Woodlands is a 28,000-acre community that features a mix of residential, commercial, and recreational spaces. With over 118,000 residents, the community boasts a range of amenities, including over 200 miles of hiking and biking trails, numerous parks and playgrounds, and a variety of shopping and dining options. The Woodlands is also known for its emphasis on sustainability and green living, with a number of LEED-certified buildings and initiatives aimed at reducing its environmental impact.

Production homebuilders employ a diverse group of professionals to support their new home community building activities. In general homebuilding division offices are established in a given metropolitan area. Each division first needs Acquisition Departments to buy land upon which to build. These roles will include Acquisition Specialists, Managers, and Directors and Entitlement Professionals. Often times, Entitlement will take years to get the appropriate permitting. After this, the land must be developed (ie graded, divided into lots, dry and wet utilities installed, roads, tot-lots and entry monuments put in, etc). This all falls under the purview of Land Developers. Next comes the construction of the homes and includes construction superintendents, directors of construction and warranty professionals. Last are the new home sales people who help move the inventory and collect revenue. Inside the division office are marketing, accounting, and purchasing professionals who fill in the gaps. All of these roles are essential to ensure that homes are built on schedule, within budget, and to the highest quality standards. Builders must also keep themselves up-to-date with the latest industry trends, regulations, and materials to ensure they are constructing homes that fulfill the requirements and desires of their clients.

As many in the industry will freely admit, the cyclical nature of the housing market significantly impacts the homebuilding sector. To that end, many in the news media who wish to report on market conditions will refer to the The NAHB/Wells Fargo Housing Market Index (HMI) – a monthly survey of NAHB members to assess the state of the single-family housing market. The survey asks respondents to rate market conditions for new home sales currently and in the next six months, as well as the traffic of potential buyers of new homes. In the early 2000s, the housing market boomed as home values skyrocketed, and the demand for homes shot up. Nonetheless, this boom was followed by a severe downturn as the housing market crashed in 2008, causing a financial crisis and a deep recession. Since then, the housing market has recuperated, but there have been periods of instability and uncertainty.

During housing market downturns, builders like Toll Brothers or KB Home must adjust their operations to account for reduced demand and stricter credit conditions. They may need to reduce their workforce, scale back new construction, and concentrate on selling existing inventory. Conversely, when the housing market is thriving, production builders can benefit from increased demand and expand their operations to meet the requirements of their clients.

TalentWoo is a real estate and construction recruiting enterprise that helps new homebuilders grow by providing them with the tools and resources they require to attract and retain top-notch talent. TalentWoo offers various recruiting services, including executive search, contract recruiting, and outsourced talent acquisition (RPO) departments. By teaming up with TalentWoo, NAHB members can gain a competitive edge in the market by building a talented and skilled workforce. Contact us today for a free consultation about your hiring needs.