Tag Archives: housing leadership summit

The 2018 Builder 100 List: How the 10 fastest-growing public builders found success after “The Great Recession”

Recent findings show we are close to reaching the all-time high in the home building industry in terms of the number of homes sold when comparing the numbers from a decade ago, before “The Great Recession”. In 2007, we had a record high in home closings of 389,902 units in comparison to 2017 with 326,984.

The numbers are a sure sign of a healthy growth year over year, especially after one of the worst market crashes since the great depression. We have explored the past decade in providing hundreds of home builders with mission-critical integrated software solutions.

We found that many of the Top 10 fastest growing public companies listed on the Top Builder 100 list not only leveraged Constellation’s software but also shared a common theme when it comes to business operations during recession recovery.

They Doubled Down on Resources in a Down Market

As company growth stalls, builders invested back into their communities to produce more homes and tried to be mindful of their bidding strategies. As the recession hit the housing market, so did all other resource assets related to infrastructure. Builders tightened up their budgets and running costs to invest in the long term. Although this has not been a complete comeback, 2017 did see higher revenues in the homes sold to due to a rise in the average home price as demand is also rising and home builders were more willing to innovate with their products for higher margins. Last year saw $133 billion in revenue versus $123 billion from 2007.

Managing a Tight Market with Automation & Innovation

With limited internal support, growing builders turned to cost-cutting strategies that streamline processes on the job site, that eliminated manual work in the back office, and provided insightful reports for better decision making – this became a necessity for every real estate investment after the recession. Many growing builders stayed afloat by spending less time administrating tasks and more time on strategy. They also leveraged software at any given opportunity, time became of the essence in investing in real-estate. Builders waited for key pockets of metropolitan neighborhoods close to a bigger builder’s community to ensure buyers would come. Builders constantly assessed and reassessed plots of land, they integrated accounting into all their business functions for increased financial analytics, scheduling became the law of these firms as any building errors were simply too much to pay for.

Simultaneously, as precision home building became more and more automated, design center upgrades became a trend. New homeowners wanted personalization from production home builders. With integrated décor centers, home builders were able to offer up “premium” finishes to home interiors that improved margins without sacrificing too much building time. Some builders have even integrated their contract addendums to their homeowner’s selections for real-time data on profits and capital costs of each home.

Also try, “Top 5 Builder Tips for Efficient Décor Centers to Drive ROI” for improved design center appointments.

Rebuilding Teams with Goals and Effective Processes in Mind

As the housing downturn affected where people worked, home builders carefully restructured their companies with key talent that understood the company’s deliverables and goals. Key members were usually sales driven and understood the necessity of streamlined processes. This new generation of builders figured out that the old way of building needed to change as new technical solutions became available, with data and metrics injected into the workplace culture of building companies. Accountability to achieve financial success was heightened, while streamlined process left more time for home product innovation.

The Verdict

The fastest-growing public home builders today are where they are because they believed in their trade. During the recession, they doubled down where they saw fit and planned for future developments. They invested in automation technology and best practices that became cost-effective ways of completing the same task with less effort. They also innovated but did so in accordance with what they can afford by measuring, tracking, and budgeting. Overall, home builders chose to innovate and offer better homes than before by rebuilding their company culture around goal setting and improved workflows.

The Housing Leadership Summit

At this year’s Housing Leadership Summit, we are proud to be supporting Hanley Wood and “Top 200” builders as a gold event sponsor. We are happy to announce that builders can now anticipate and maximize productivity with the latest advanced home building technology. From artificial intelligence to the design studio, access real-time business predictions so you can focus on improving all aspects of your work processes. We look forward to meeting all top thinking builders at this year’s event.

Source

“The Great Recession: Builders Look Back” by Jennifer Goodman | Builderonline.com

“The 10 Fastest-Growing Public Builders” by Hanley Wood Data Studio, Charlotte O’Malley | Builderonline.com

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2016 Housing Leadership Summit by Hanley Wood and Builder Magazine

The 2016 Housing Leadership Summit promises big-picture, forward thinking from exciting speakers ranging from quarterbacks to CEOs. With an uncertain outlook for 2016, industry leaders are challenged to plan further down the road. This year’s theme of “Leading Change: A Focus on Agility in a Fast Moving-Target Housing Market” suggests what leaders already know – the best builders need to change with the market, and the market is not sitting still.

Builders hoping to climb the 2016 Builder 100 list, released this week, will congregate next week in Dana Point, CA. As the technology sponsor of the Housing Leadership Summit for three consecutive years, we are consistently fascinated by the conversations taking place at this event. With our unique position in the industry, we introduce builders in similar markets and we are consistently amazed by the amount they are willing to share – to help each other improve.

Last year’s event in Miami featured statistics, roundtables, events, speakers, discussions, panels, and even a shark tank. Metrostudy presented encouraging industry statistics, building on the strong housing market foundation: strong employment, marriage and birth rates. Key statistics on the millennial generation helped builders understand a confusing market segment.

The Housing Leadership Summit has no comparison. The event brings together industry leaders in a setting that promotes discussion, sharing and learning. If you have never before attended, register now or consider the event for 2017!

2016 Housing Leadership Summit
May 14-16
The Ritz Carlton Laguna Niguel
Dana Point, California

If you are attending the 2016 Housing Leadership Summit and you would like to meet with our team, please send us an email. We would be happy to arrange a time that works best for you.

Images from the 2015 Housing Leadership Summit

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The 2016 Housing Leadership Summit takes place May 16-18 in Dana Point, CA. Registration is OPEN. Visit www.housingleadershipsummit.com to learn more and to register.

Big Builder Panel - 2015 Housing Leadership Summit

Big Builder Panel CEOs (L to R): Scott Stowell, Standard Pacific Homes; Eric Lipar, LGI Homes; Doug Bauer, TRI Pointe Group; Frank Anton, Hanley Wood.

The 2015 Housing Leadership Summit came to a close yesterday in a flurry of statistics, roundtables, events, speakers, discussions, panels, and even a shark tank. Turnberry Isle, Miami served a gorgeous backdrop to three days of engaging sessions with the top builders in the country. Optimism for the industry is appropriately high for the coming year, and that energy could be felt in every session.

That optimism stems from the industry statistics shared by Metrostudy: a 50% increase in starts, and a 30% increase in prices since last year. The ingredients for a successful housing market are present: Americans are employed, getting married, and having babies. Entry-level homes from builders such as LGI Homes and D.R. Horton are filling a real need in today’s marketplace.

The feel-good moment of the week was the presentation of the 2015 Hearthstone BUILDER Humanitarian Award for the 16th consecutive year. The award honors builders who have demonstrated a lifelong commitment to making their communities a better place to work and live. This year’s award was presented to Dan Ryan, CEO and President of Dan Ryan Builders. Among the numerous and various ways Ryan gives back, he recently travelled with friends to the Dominican Republic to build bleachers for the soccer field at an orphanage – working with the children to teach them building skills. When asked about his need to give back, he recalled his father:

Dan Ryan - 2015 Hearthstone BUILDER Humanitarian Award Winner

“My giving philosophy is an extension of my dad’s philosophy, which is: ‘Give back to those who are in need.’ It’s extremely important for me to give back.”

 

The Constellation Team is in awe of Dan Ryan and his philosophy. Congratulations to a worthy recipient.

The 2015 Housing Leadership Summit was a huge success, and we were thrilled to once again be the event’s digital sponsor, providing much-needed wifi and other technology goodies to the attendees.

As a sneak peek, below are some statistics on the much-discussed millennials market segment. The research below, from Metrostudy and The Demand Institute, should shed some light on how to approach this segment in your market.

Thank you to all attendees; we look forward to seeing you next year!

 

2015 Millennial Statistics (now the largest buyer segment!)

  • 37% live in multigenerational households (parents move in with them)
  • Believe housing is an excellent investment – only 16% believe they will not own a home
  • 69% would consider a lease to own approach – financial limitation is the main reason they aren’t buying
  • 71% want a home they can personalize
  • 35% are likely to rent at least a portion of their home
  • Parks, grocery stores, family friends, employment, schools need to be in close proximity (but a short drive is OK)
  • Quality construction, low maintenance, and storage are important features
  • Motivated by outdoor space, building equity, and living spaces
  • Four basic needs: money, health, time, and technology
  • The American Dream is still alive – owning a home is still a goal and an accomplishment

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The New Home Company - Larry Web and Team

The New Home Company Team: (from left), Fabienne Smolinski, VP, People, Larry Webb, CEO, Joan Marcus-Colvin, Senior VP Marketing & Design, and AJ Jarvis, President, Southern California. Photo: Mike Cunningham, The New Home Company (via builderonline.com)

Who are we? and What do we want to be?

Every member of The New Home Company team asks themselves these two simple questions when they step into the office or the job site. The answers are the same: We are how and where our customers want to live. And we want to continue to be that.

For CEO Larry Webb and the management team at The New Home Company, these daily questions drive a culture that has created one of the fastest-growing public builders of the past decade. Impressive, especially for a company that incorporated in 2009.

These two questions drive The New Home Company’s culture in everything they do: across divisions of hierarchy, geography, discipline, and focus, these questions pull everyone together. They fuel the team and focus them on a common goal. They are measurable and actionable. These are the keys to authentic corporate culture in any industry – and The New Home Company is a perfect example.

Continue reading about The New Home Company’s culture via builderonline.com.

 

The New Home Company has been a Constellation partner since 2010, utilizing our NEWSTAR Enterprise software solution to manage their business behind-the-scenes. From sales management to home production to customer relationships, NEWSTAR empowers The New Home Company to communicate and manage projects across their functional teams and construction divisions. Ask us how.

The New Home Company was recently recognized in Inc. Magazine Founder’s 40: some of he fastest-growing public companies that continue to act like startups.

Join The New Home Company’s management team at the 2015 Housing Leadership Summit May 11-13 in Miami. In attendance: Larry Webb, CEO, Fabienne Smolinski, VP, People, Joan Marcus-Colvin, Senior VP Marketing & Design, and AJ Jarvis, President, Southern California. Constellation is the digital sponsor of the event, and our management team will also be in attendance – join us!

The New Home Company was recently recognized at the 2015 Eliant Homebuyers’ Choice Awards. CEO Bob Mirman presented The New Home Company with “The Eliant” award for Best Overall Customer Experience for a multi-divisional builder. Constellation was a proud gold sponsor of the Homebuyers’ Choice Awards. Congratulations to The New Home Company and all the award winners.

The New Home Company rang the closing bell at the NYSE on February 5, 2015. NEW HOME (NYSE: NWHM) became a publicly traded company in January 2014.

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2015 Housing Leadership Summit - Homebuilder Shark Tank

Would you like to put your next big idea in front of $2 billion of acquisition capital?

Here’s your chance to throw your idea into the Shark Tank. BUILDER and Metrostudy have put together “an all-star line-up of money men” to challenge, probe, and ultimately decide if your idea has merit.

Moderator: Brad Foster, Managing Director, Corporate Finance, FTI Consulting

Sharks: Bird Anderson, Executive Vice President, Commercial Real Estate-Home Builder Banking, Wells Fargo; Tony Avila, Managing Principal, Encore Funds; Theodore Karatz, Principal, GTIS Partners, Anthony J. McGill, Managing Director, Zelman & Associates; Rodney Montag, Chief Executive Officer & Managing Partner, RAM Real Estate Capital

Do you have a big idea? The Housing Leadership Summit is looking for three of them. Click here for more information and to submit your idea to the Shark Tank.

For the second consecutive year, Constellation is the Digital Sponsor of the Housing Leadership Summit.

Photo: Housing Leadership Summit Shark Tank “Sharks:” (from left) Rodney Montag, Theodore Karatz, and Bird Anderson

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