Builder Magazine recently revealed their list of the top 10 builders in the United States based on the latest figures. This lineup includes some familiar names, with Dr. Houghton once again reigning supreme at the top. In fact, nine out of the ten leading builders remained unchanged from the previous year.
Top 10 U.S. Builder Trends to Watch
- Increased Volume: Across the board, there has been a surge in the number of homes built, with three of the top 10 builders experiencing growth of over 25%.
- Revenue Growth: There has been considerable revenue growth among the leading builders, with three of them witnessing an increase of more than 25%.
- Mixed Average Revenue: The average revenue per transaction varies among the top builders.
- Toll Brothers Drops: Toll Brothers slipped from 8th place to 11th on the list compared to the previous year.
#10 LGI Homes, The Woodlands, Texas
- Number of Transactions: 9,339 (up 21.4%)
- Revenue: $2.37 billion (up 28.9%)
- Average Revenue per Transaction: $253,560
LGI Homes has successfully maintained its position, surpassing Hovnanian Enterprises, which has now fallen to 14th place. LGI Homes constructs diverse homes ranging from entry-level to mid-level and luxury properties across the Midwest, South, and West regions. With an average income per sale of $256,987, LGI Homes appeals to young homebuyers, particularly as soaring home prices make affordability a concern. They generated revenue exceeding $600 million in the previous year.
#9 Century Communities, Greenwood Village, Colorado
- Number of Transactions: 9,453 (up 18.2%)
- Revenue: $3 billion (up 22%)
- Average Revenue per Transaction: $320,216
Century Communities exhibited significant progress, soaring from 16th place to 9th place and amassing more than $500 million in additional revenue compared to 2017. Their focus lies in constructing entry-level and mid-level homes throughout the Midwest, South, and West regions.
#8 Clayton Properties Group, Maryville, Tennessee
- Number of Transactions: 9,475 (up 28.6%)
- Revenue: $2.98 billion (up 27.1%)
- Average Revenue per Transaction: $314,828
Clayton Properties Group has climbed to the 8th spot, moving ahead of Toll Brothers (previously 11th). As a subsidiary of Berkshire Hathaway, this company specializes in luxury and custom “upgraded” homes, along with properties for active adult communities and even subsidized properties.
#7 KB House, Los Angeles, CA
- Number of Units: 10,672 (down 10.1%)
- Revenue: $4.17 billion (down 8.2%)
- Average Revenue per Transaction: $390,461
KB Home slipped to the 7th spot on our list, yet it remains the first builder to break the 10,000-sales mark with 10,672 sales. Their market areas reach the entry-level, mid-level, and active adult market segments in the South and West regions. Despite closures and modest revenue growth, KB Home continues to thrive.
#6 Meritage Homes, Scottsdale, Arizona
- Number of Transactions: 11,834 (up 27.7%)
- Revenue: $4.44 billion (up 23.1%)
- Average Revenue per Transaction: $375,021
Meritage Homes is a prominent builder in the southern and western parts of the United States. Their wide-ranging focus encompasses entry-level, mid-level, luxury, and active adult segments. With revenues increasing by over $800 million, Meritage Homes maintains its rank at number 6.
#5 Taylor Morrison, Scottsdale, Arizona
- Number of Transactions: 12,524 (up 25.7%)
- Revenue: $6.13 billion (up 32.6%)
- Average Revenue per Transaction: $489,380
Taylor Morrison specializes in constructing homes for various segments, including entry-level, mid-level, luxury, active adult, and vacation homes in the Midwest, South, and West regions. Also based in Scottsdale, Arizona, Taylor Morrison surpasses Meritage Homes with a slight increase in the number of deals and higher average revenue. Their revenue amounted to approximately $1.5 billion.
#4 NVR, Reston, VA
- Number of Closures: 19,766 (little to no change)
- Revenue: $7.33 billion (up 1.5%)
- Average Revenue per Transaction: $370,737
NVR achieved modest revenue growth while maintaining solid closure numbers. This Virginia-based company operates in the Northeast, Midwest, and South regions.
Last 3 of Top 10 Builders in America
#3 Pultegroup, Atlanta, Georgia
- Number of Transactions: 24,624 (up 6.0%)
- Revenue: $9.92 billion (little changed)
- Average Revenue per Transaction: $402,656
Pultegroup increased its closing volume by 6% while maintaining revenue at previous levels. They construct entry-level, mid-level, and active adult homes across the Northeast, Midwest, South, and West regions.
#2 Lennar Corporation, Miami, FL
- Number of Transactions: 53,376 (up 3.7%)
- Revenue: $20.8 billion (up 1.4%)
- Average Revenue per Transaction: $390,047
To secure the top spot on our list, Lennar Corporation needs to increase its volume. Thanks to the acquisition of CalAtlantic, the company posted impressive numbers in 2018, with a slight increase in closures and minimal revenue growth. Lennar Corporation dominates the entry-level, intermediate, and active adult communities in the Northeast, Midwest, South, and West regions. With over $10 billion more in total revenue than Pultegroup, Lennar Corporation is twice the size from a financial standpoint.
#1 DR Horton, Ft. Worth, Texas
- Number of Transactions: 71,292 (up 22%)
- Revenue: $21.6 billion (up 24.2%)
- Average Revenue per Transaction: $302,671
DR Horton secures its position as the number one builder in the US with a staggering number of closings, reaching almost 18,000. Although their average revenue per transaction is $88,000 less than Lennar Corporation’s, they maintain the lead in terms of overall revenue. With a net worth of $21.6 billion, DR Horton covers nearly every region in the United States, constructing homes for entry-level, mid-level, luxury, and active adult segments. They are the only company in the top 10 with US Pacific coverage.