BUILDER’s premier lists of the top 200 builders in the country, the BUILDER 100 and the Next 100, are set to be released next week. In light of that, we are counting down each day with some facts and figures gleaned from the data.
Much like national indices provide a top-level view of economic trends over time, our annual Builder 100/Next 100 survey paints a long-term picture of the housing industry by documenting activity of the top 200 builders in the country.
The dislocation in housing caused by the subprime mortgage crisis continued to recede in 2016—total new homes closed by the top 200 builders last year account for 54.98% of the pace of new home sales in 2006, when builders closed a total of 540,110 units.
By the end of 2010, a total of of 3,825,637 foreclosures had been filed, and home sales for firms in the Builder 100/Next 100 bottomed out with only 148,495 units closed—the pace of new home deliveries in 2016 marks a 99.99% recovery from that point.
In 2016, firms in the Builder 100/Next 100 delivered a total of 296,981 new homes, marking a 13.62% increase from 2015, when the top 200 builders delivered a total of 261,372 new homes.
The top 100 builders delivered 272,524 new homes, accounting for 91.76% of total units closed last year. The 23 public builders included in our list (all in the top 100) delivered 191,181 new homes alone, accounting for 64.37% of all units closed by the top 200 builders in 2016. Builders in the Next 100 delivered 24,457 new homes, accounting for 8.24% of total units closed by the top 200 builders.
Total gross revenue of firms in the 2016 Builder 100/Next 100 lists amounted to $111,863,724,470, a 5% increase from 2015.
The top 100 firms grossed a total of $99,816,659,931, accounting for 89.23% of total gross revenue generated by the top 200 builders, while the 23 public builders included in our list grossed $70,755,186,811, accounting for 63.25% of the total gross revenue generated in 2016. Builders in the Next 100 grossed a total of $12,047,064,539, accounting for 10.77% of the total gross revenue generated by the top 200 builders in 2016.
Supported by stable employment gains and growth in household income, demand for new and existing homes continues to climb. However, low inventory (predominantly in the resale market), climbing prices, and the threat of rising interest rates could keep buyers from entering the market. For builders, finding innovative solutions for the rising costs of land and materials—which has made it difficult to deliver affordable product while still making a profit—should be a priority in the coming year, as demand for homes among entry-level and first time buyers grows.
