For the first time in US history half of all the new homes closed in one year were closed by the one hundred largest builders. In the year 2012, that is how the numbers add up. Wall Street types would have you believe, the big builders have better access to capital and land plus their purchasing power with manufacturers naturally put them at an advantage. So on the surface they seem to have an advantage and unless you are planning on building some elaborate custom home – the best deal will be from a large National Builder.
But who stops to ask the question. What makes a builder one of the largest 100 builders in the country? How many homes does a builder need to build to achieve that distinction? Well, Professional Builder the trade magazine that lists the One Hundred Largest builders, reports the One Hundredth largest builder built and closed 548 homes with an average price of $155,748 in Meridian Idaho. There are a lot of builders – including Maronda Homes – that built more homes than that in 2012. Yet if you scan the list, you won’t see the name ‘Maronda Homes’ in the first one hundred builders listed. Take the builder listed at number 200 on the list. They built 174 homes at an average price of $140,805. Many of the Regions within Maronda Homes built more than 174 homes last year. Yet they still aren’t on the list. Why is that?
Could it be that the Builders that are publicly traded need to be listed to keep the value of their stock at the highest possible number?
Could it be that there were less than 700,000 homes built in 2012? Given that the traditional number of homes built in a normal market is 1.6 Million the market is still severely constricted so it didn’t take a whole lot of homes to be ranked in the top 100 in 2012?
Could it be that the privately held builders don’t need the publicity or attention of being listed as one of the one hundred largest builders in the USA?
Could it be the list is made up of only those builders that self reported their numbers to Professional Builder Magazine?
Could the answer to all four questions be “Yes!” ?
Don’t get me wrong, I am not making fun of Professional Builder Magazine. The publication is filled with excellent articles and it is a valuable resource for all of us within the home building Industry. Just don’t let anybody sell you on the idea that only the biggest builders can provide the best value. Wall Street may want you to believe that. But Wall Street isn’t going to live in your home. You are. Privately held, regional builders, are alive and well. Visit a model center today and see what value Maronda Homes has to offer you.