Hello Tk3848,
According to a survey by the National Association of Home Builders the
average profit margin of a new home is 9.8%.
Excerpt from the Nation?s Building News ? Nov. 11, 2005
?The average profit margin on a new house dropped to 9.8% last year
from 12% in 2002, according to an NAHB survey of the 10 largest
builders in the country?s 50 leading metropolitan markets, largely
because of an increase in the price of land and construction and
materials costs as a percentage of the price of a home. ?The share
made up by the lot price is increasing over time,? said Rose Quint,
the association?s director of survey analysis. ?We know that because
land prices are going up all across the country.? In 1949, land
accounted for just 11% of a home?s selling price; last year, it was
26%, up from 23.5% in 2005. Construction costs have also been on the
rise, although not quite as swiftly, climbing from 50.7% in 2002 to
51.7% last year. ?There?s only so much they can raise prices,? said
Randy Sands, executive vice president and managing director for Los
Angeles-based ING Realty Partners, an investor in new condo complexes,
condo conversions and single-family housing. ?Builders are looking for
that land, and they?re having to pay more to get it.?
Nation?s Building News: Nov 2005
http://www.nbnnews.com/NBN/issues/2005-11-21/Coast+to+Coast/index.html
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?? an industry-wide average profit margin of 8 percent to 10 percent per house?.
Homeowners For Better Building
http://www.hobb.org/Top%20builders%20downplay%20homes'%20flaws.shtml
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The average profit margin on a newly built house is 9.8 percent.
San Bernardino County Sun
://www.google.com/search?sourceid=navclient&ie=UTF-8&rls=GGLD,GGLD:2005-18,GGLD:en&q=site:www%2Esbsun%2Ecom+%22Home+builders%22+%22+average++profit+margin%22
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Profit Margins of individual residential homebuilding companies
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Lennar
?Lennar builds about 36,200 homes annually for first-time buyers and
move-up buyers. ?Home prices range from about $100,000 to more than $1
million and average $272,000.?
Profit Margin : 9.77%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=LEN
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KB Hom
?KB Home builds mainly for first-time and trade-up buyers in more than
392 communities in Arizona, California, the Carolinas, Colorado,
Florida, Georgia, Illinois, Nevada, New Mexico, and Texas. Its homes
range in size from about 1,200 sq. ft. to 3,900 sq. ft. and average
$206,500 in price.?
Profit Margin : 8.92%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=KBH
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Hovnanian Enterprises
?Hovnanian Enterprises designs, builds, and markets single-family
detached homes, condominiums, and townhomes for first-time, move-up,
and luxury buyers as well as for empty-nesters and active adults.
Hovnanian builds about 14,600 homes a year, with base prices ranging
from $46,000 to $1,350,000 and averaging about $280,000.?
Profit Margin : 8.82%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=HOV
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Dominion Homes
?Dominion Homes annually constructs about 2,800 single-family
entry-level, move-up, and executive homes that range in size from
about 1,000 sq. ft. to 3,500 sq. ft. and in price from about $110,000
to more than $350,000, and average about $188,000.?
Profit Margin 1.28%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=DHOM
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Comstock Homebuilding
?Comstock Homebuilding Companies, Inc. operates as a production home
builder in Washington, D.C. and Raleigh, North Carolina markets. It
develops, builds, and markets residential land, single-family homes,
townhouses, and condominiums?
Profit Margin : 13.10%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=CHCI
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Pulte Homes, Inc
?Domestic Homebuilding unit engages in the acquisition and development
of land primarily for residential purposes and the construction of
housing on such land targeted for the first-time, first and second
move-up, and active adult home buyers within the continental United
States.?
Profit Margin : 9.46%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=PHM
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Beazer Homes
?Beazer Homes USA builds for the middle-class buyer who's ready to
make the move into the white-picket-fence scene. Beazer builds more
than 18,000 single-family homes a year -- at an average price of about
$270,000 -- for entry-level and first-time, move-up buyers.?
Profit Margin: 5.26%
http://finance.yahoo.com/q/ks?s=BZH
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William Lyon Homes (WLS)
?William Lyon and its joint venture partners build single-family
detached and attached homes in California, Arizona, and Nevada.?
Profit Margin: 10.52%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=WLS
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The Ryland Group
?Ryland annually builds about 15,100 homes that range in price from
$85,000 to more than $700,000 (averaging $251,000).?
Profit Margin: 8.69%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=RYL
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Technical Olympic USA
The average sales price for its homes is $275,000.
Profit Margin: 7.60%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=TOA
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Standard Pacific
?Standard Pacific's foundation is built on single-family homes. The
company focuses on the move-up buyer market, building about 9,100
homes a year in more than 170 communities, mostly in California and
Florida (which generate two-thirds of its sales), but also in Arizona,
the Carolinas, Colorado, Nevada, and Texas. Homes range in size from
1,500 to 3,500 sq. ft. and in price from $100,000 to more than $1
million (averaging $383,000). Standard Pacific also builds attached
townhomes?
Profit Margin: 10.85%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=SPF
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Orleans Homebuilders
?OHB and its subsidiaries build communities of single-family homes
(with average costs of about $310,000), condos, and townhomes for
first-time and move-up buyers, luxury homebuyers, empty nesters, and
active adult homebuyers.?
Profit Margin: 5.88%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=OHB
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Brookfield Homes
?Brookfield Homes, a spinoff of Brookfield Properties, designs and
builds single- and multi-family homes for move-up and luxury buyers.
The homes average around $650,000.?
Profit Margin 13.94%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=BHS
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Whitemark Homes Inc.
Its homes range in cost from $180,000 to more than $400,000.
Profit Margin: 4.81%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=WTMK.OB
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Centex Corp
Profit Margin: 8.49%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=CTX
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Calton Inc.
Profit Margin : 5.43%
Yahoo Finance
http://finance.yahoo.com/q/ks?s=CTON.OB
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Resources:
Industry Center > Residential Construction > Company Index
http://biz.yahoo.com/ic/630_cl_pub.html
Search criteria:
"Home builders" ?average profit margin"
I hope the information provided is helpful!
Best regards,
Bobbie7 |
