New Housing For-Sale Builders

Overview

The 16,000 new housing for-sale builders in the US build single-family and multi-family homes on land that is owned or controlled by the builder. New housing for-sale builders are also known as merchant builders, production builders, or operative builders. Large firms may also provide related services, such as mortgage financing or title services.

High Cost of Land Investment

The new home building industry is capital intensive and requires significant upfront investment in land, the value of which can vary depending on market conditions.

Dependence on Subcontractors

New home construction is highly dependent on subcontractors, with most firms directly employing a limited number of workers to oversee subcontracting activity.