Homebuilder M&A and Market Share Update

Written By Jennifer Yu

We look forward to reviewing Zonda’s annual Builder 100 and Local Leaders data each spring, as it highlights critical trends in market share, growth strategies, geographic performance, and industry consolidation. Our analysis of this year’s data, in addition to what we are seeing real-time, reinforces our view that M&A activity remains a key strategy for larger builders as they continue to expand into new geographies and drive their market share even higher.
 
Below are several data points our team found particularly insightful:

  1. Persistent Dominance of D.R. Horton and Lennar

  • These two builders closed a combined 173K homes in 2024; 40K - or 30% - more than the combined total of the next eight largest builders

  • Since 2020, D.R. Horton has grown unit closings by 31%, while Lennar has increased by 50%

   2. Acquisitions Drive Large Builder Market Share

  • The top ten builders now hold 45% market share, up 14 percentage points from 2019. This compares to 10% market share for the top ten builders in 1994

  • Since the beginning of 2024, 26 private homebuilder acquisitions have been recorded, highlighting both increased competitive pressure and attractive exit opportunities for private builders

   3.  Publics Control the Top 50 Markets

  • D.R. Horton and Lennar claim the #1 spot in 38 of the top 50 U.S. markets

  • NVR holds the #1 spot in four markets

  • Independent builders maintained the #1 position in just three markets

  • The top ten builders collectively account for 75% of closings across the top 50 markets; public builders account for 72%

   4.  Healthy Closings Growth Among the Top 50 MSAs

  • The top 50 MSAs saw 426K new home closings in 2024, a 4% increase from 2023’s 410K. This represents 62% of the national total

  • The top ten MSAs accounted for 48% of closings in the top 50 markets; the top five MSAs made up 32% - both consistent with where these levels stood in 2020   

   5. Japan-Backed Growth

  • The Japanese-owned builders recorded 35K closings in 2024, up from 31K in 2023, or 5% market share nationally. Closings for both years include M.D.C.

   6. More Builders and Markets Deliver 10,000+ homes

  • 11 builders delivered more than 10K homes in 2024, up from seven in 2023

  • 14 MSAs delivered over 10K homes in 2024, up from 12 in 2023

   7. The Sunbelt States and California Lead the Way: Florida tops with 12 top 50 markets, followed by South Carolina (5), and Texas and California (4 each) 

  • Texas: 114K closings, or 27% of the top 50 market closings, up 3% YoY

  • Florida: 87K closings, or 20% of the top 50 market closings, up 3% YoY

  • California: 18% growth in its top 50 markets (this excludes Fresno, which is new to the top 50 in 2024)

   8. A Shift Away from the Top Markets?

  • 74% of the top five builders' (DHI, LEN, PHM, NVR, MTH) deliveries were concentrated in the top 50 markets in 2024, down almost two percentage points from 2023

Our team had the opportunity to take a break together following a busy spring conference season, and we hope you have an opportunity to relax this summer too.

We remain active, with several transactions closing for our builder clients this summer. Continued momentum remains from serious buyers and capital providers alike, given the long-term positive demographics of the housing industry. Please reach out to discuss your company’s needs.

Jennifer Yu
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Notes from the Road: May Conference Season Wraps Up