Tuesday, March 17, 2009

Top 10 builders for 2008

You've probably heard most of these names before -- D.R. Horton, Pulte, Centex -- so it's probably not difficult to imagine that they've all made the Builder magazine's Top 10 list of the country's biggest builders in 2008 (albeit in a concentrated form). But what's interesting is that some of them have taken advantage of the marketplace and switched places. From a BuilderOnline.com story:

Nearly all of them reported a steady stream of record-breaking losses, as the home building market went from bad to worse. The Census Bureau reported that new home sales fell 38 percent last year. Our survey reveals that sales among the top 10 builders declined by a nearly identical amount.

The depressed sales environment forced the top 10 builders to play some serious defense. They retreated from marginal markets; sold off land at discounts; continued personnel reductions; cut expenses; and struggled to regain profitability.

The top 10 worked overtime to generate cash flow and allay investor concerns that they could not meet debt obligations. Unlike many builders in the second tier of the Builder 100, the top 10 all managed to stay in business thanks to long-term debt financing. Even companies reporting the biggest losses stockpiled large cash reserves that they hope to one day deploy to fuel growth.

The country’s biggest builders are now shadows of their former selves. In 2005, the top 10 builders sold 289,354 homes. Last year, they closed only 132,994 homes, a 54 percent decline.

Top 10 Builders for 2008

RankCompany2008 closings% change2007 closings2007 ranking
10.Meritage Homes Corp.5,627-517,68712
9.Beazer Homes USA6,642-4211,3668
8.The Ryland Group7,352 -2910,3199
7.NVR 10,741-21 13,5137
6.Hovnanian Enterprises11,281-2514,9286
5.KB Home12, 438-4823,7435
4.Lennar Corp.15,735-5333,2832
3.Centex Corp.18,241-4130,6843
2.Pulte Homes21,022-2427,5404
1.D.R. Horton 23,915-3737,7171
Total132,994-37210,780

1 comment:

Vincetastic said...

This is a really great top ten list, really interesting to see that February housing starts actually increased. Have we hit the bottom? Anyone can post lists to our site http://www.toptentopten.com/ and then link back to your site. The coolest feature is you can let other people vote on the rankings of your list.