We have said regularly that dealers who ignore production builders are missing out on a huge share of all construction taking place today. According to Metrostudy, a sister company to ProSales, the nation’s 100 biggest builders were responsible for 54% of all the new homes for which sales were closed last year.
But in lots of big metro areas, the domination is even greater. Metrostudy found that, in 33 of the nation’s 50 biggest housing markets, just 10 builders account for at least 59% of all the homes closed in that area in 2015. The data was presented in sister publication Builder's June Local Leaders issue. The 10 markets where that area's top 10 builders hold the highest market share are listed below.
|Market||Top 10 Market Share in 2015|
|Naples/Immokalee/Marco Island, Fla.||93.7%|
|North Port/Sarasota/Bradenton, Fla.||93.2%|
|Miami/Fort Lauderdale/Pompano Beach, Fla.||90.2%|
|Lakeland/Winter Haven, Fla.||85.5%|
|Cape Coral/Fort Myers, Fla.||84.1%|
|Las Vegas/Henderson/Paradise, Nev.||82.8%|
|Riverside/San Bernardino/Ontario, Calif.||79.7%|
Metro areas in Florida account for five of the six markets with the most domination by that market’s top 10 builders, with Naples-Immokalee-Marco Island leading the way at 93.7%. Only the Indianapolis area broke up a Sunshine State sweep.
The top of the list is largely a Sunbelt phenomenon, with markets below the Mason-Dixon line in 16 of the first 20 places. In contrast, Boston ranked last among the 50 in terms of the top 10 builders’ collective control, at 25.9%, while the New York metro was second to last at 31.7%.
Nationally, the top 10 builders figured in 29% of all closings last year, Metrostudy says. That’s unchanged from 2014—the first time the percentage hasn’t risen since 2009, when it was just 22%. Meanwhile, the top 100 builders’ share of the entire home construction market has grown from 38% in 2008 to 54% currently.
Click through to our sister site, BUILDER, to view the full, sortable list of the 50 biggest U.S. markets and the top 10 builders' market share.