National Housing Market Outlook

Public Builders Gaining Ground

October 17, 2014

As a result of historically low borrowing costs and relaxed regulations on smaller companies going public (thanks to the JOBS Act), publicly traded home builders have been gaining market share. Halfway through 2014, public builders have 35.5% market share, up 6.1% from 2013. This gain was made through:

  • IPOs. Eight builders have gone public over the past year and a half, accounting for 2.9% of the increase.
  • Mergers and acquisitions. Publicly traded builders have purchased 14 sizeable private builders over the past two years, which has helped to boost the 16 original builders’ market share by 3.2% (from 2013).

With lots in good locations difficult to find and land prices reaching elevated levels in numerous markets across the country, public builders have been taking advantage of their lower cost of capital to buy private builders with lots in the right locations. Given higher lot prices and loftier valuations for home building operations, and much more expensive capital, private builders are more willing to sell and monetize their business.

Whether growth comes organically, through purchasing private builders, or private companies listing on a national exchange, publicly traded home builders have become a much bigger part of the new home market.

If you have any questions, please fill out this form

Building Market Intelligence™

Every week, we deliver analysis to over 40,000 subscribers with our Building Market Intelligence™ newsletter. Subscribe to our weekly BMI newsletters to stay current on pressing topics in the housing industry.

About The Author

Contact Us

If you have any questions about our services or if you would like to speak to one of our experts about we can help your business, please contact Client Relations at

Products and Services Mentioned

green check icon

Research Membership

Our research services enable our clients to gauge housing market conditions and better align their business and strategic investments in the housing industry. We provide a thoughtful and unique holistic approach of both quantitative and qualitative analysis to help clients make informed housing investment decisions.
green check icon

Building Products Package

Our research subscription provides unparalleled expertise and a unique specialized perspective on new construction and remodeling, backed with exceptional data, for business planning and investor relation support.
green check icon

Building Products Consulting

Our building products team is comprised of industry experts with diverse sector and functional experience. We partner across organizations to provide custom consulting reports to aid organic and inorganic investment decisions, strategic planning, and marketing.

Latest Insights

NHTI Industry Pulse: $40K for a Gym Membership?
Dear Consultant: Can people still afford homes with high rates and increased inflation, or are they more likely to rent? 
Hillwood Communities and the Art and Science of Placemaking