Builder Magazine has released its list of the top 10 builders in the US based on final numbers from the previous year. The list is full of familiar names, with Dr. Houghton again at the top of the list. In fact, nine of the top 10 builders were unchanged from the previous year.
Top 10 U.S. Builder Trends to Watch
- The total number of houses handed over across the board has increased, and 3 of the top 10 have increased by more than 25%
- Overall revenue growth across the board, 3 of which saw revenue growth of more than 25%
- Average revenue per transaction is mixed
- Toll Brothers falls to No. 11 from No. 8 on our previous list
#10 LGI Homes, The Woodlands, Texas
- 9,339 transactions (up 21.4%)
- Revenue of $2.37 billion (up 28.9%)
- Average revenue per transaction: $253,560
LGI moves to maintain its position, taking it earlier from Hovnanian Enterprises, which slipped to 14th. LGI builds homes in the Midwest, South, and West, focusing on a wide variety of entry-level, mid-level, and luxury homes to build a broad resume.
With home prices reaching levels unaffordable for young families, their average income per sale was $256,987, making them the most attractive to young homebuyers in the top 10. They earned more than $600 million in revenue from the previous year.
#9 Century Communities, Greenwood Village, Colorado
- 9,453 transactions (+18.2%)
- $3 billion in revenue (up 22%)
- Average revenue per transaction: $320,216
Century Communities was one of our big movers this year, surging from No. 16 overall to No. 9, with more than $500 million more revenue than in 2017. Covering the Midwest, South, and West, they primarily focus on entry-level and mid-level homes.
#8 Clayton Properties Group, Maryville, Tennessee
- 9,475 transactions (up 28.6%)
- Revenue of $2.98 billion (up 27.1%)
- Average revenue per transaction: $314,828
Clayton Properties Group replaced Tool Brothers at No. 8 (from No. 11 last year). The Berkshire Hathaway company divides its time between luxury and custom "upgraded" homes, as well as building properties for active adult communities, even subsidized properties.
#7 KB House, Los Angeles, CA
- 10,672 units (down 10.1%)
- Revenue of $4.17 billion (down 8.2%)
- Average revenue per transaction: $390,461
KB Home dropped a few spots to No. 7 on our list of the top 10 builders in the US, but it was still the first company on our top 10 list to break the 10,000-sales mark with 10,672 sales. Their South and West market areas reach entry-level, mid-level and active adult communities. With closures and modest revenue growth, it's business as usual for this popular company.
#6 Meritage Homes, Scottsdale, Arizona
- 11,834 transactions (up 27.7%)
- Revenue of $4.44 billion (up 23.1%)
- Average revenue per transaction: $375,021
Meritage is a name you'll find in the southern and western parts of the country. Their broad focus includes entry-level, mid-level, luxury and active adult segments. The Scottsdale-based company maintained its No. 6 spot from last year, with revenues up just over $800 million.
#5 Taylor Morrison, Scottsdale, Arizona
- 12,524 transactions (up 25.7%)
- Revenue of $6.13 billion (up 32.6%)
- Average revenue per transaction: $489,380
Taylor Morrison specializes in entry level, mid-level, luxury, active adult and vacation home construction in the Midwest, South and West of the United States. Another Scottsdale, Arizona-based company, they maintained their lead over Meritage, adding just a few hundred more deals and higher average revenue. They took in about $1.5 billion in revenue.
#4 NVR, Reston, VA
- 19,766 closures (little to no change)
- Revenue of $7.33 billion (up 1.5%)
- Average revenue per transaction: $370,737
NVR ended with modest revenue growth, maintained their closing numbers and saw solid revenue with each closure. The Virginia-based company serves the Northeast, Midwest and South.
Last 3 of Top 10 Builders in America
#3 Pultegroup, Atlanta, Georgia
- 24,624 transactions (up 6.0%)
- Revenue of $9.92 billion (little changed)
- Average revenue per transaction: $402,656
Pultegroup boosted its closing volume by 6% while maintaining revenue at previous levels. Pultegroup builds entry-level, mid-level, and active adult homes in the Northeast, Midwest, South, and West.
#2 Lennar Corporation, Miami, FL
- 53,376 transactions (up 3.7%)
- Revenue of $20.8 billion (up 1.4%)
- Average revenue per transaction: $390,047
Lennar needs to add more volume to earn the coveted top spot on our list of the top 10 builders in America. The company posted some impressive numbers in 2018 thanks to its acquisition of CalAtlantic. Last year, the number of closures increased slightly and revenue growth was minimal. In terms of total revenue, Lennar is twice as large (over $10 billion) as the third-ranked Pultegroup.
Lennar builds entry-level, intermediate and active adult communities in the Northeast, Midwest, South and West.
#1 DR Horton, Ft. Worth, Texas
- 71,292 transactions (up 22%)
- $21.6 billion in revenue (up 24.2%)
- Average revenue per transaction: $302,671
DR Horton ranks among the top 10 builders in the US by virtue of the number of closings (nearly 18,000). Their $300,000+ average revenue per transaction is $88,000 less than Lennar's, but they still hold the top spot for total revenue. With a net worth of 21.6 billion US dollars, it is not bad to be king.
foot. The Worth, Texas-based company covers nearly every region of the United States, with homes in the entry-level, mid-level, luxury, and active adult segments. In the top 10, they are the only company with US Pacific coverage.