Fast Track 2005
Not content to coast along with the housing
boom, these builders have opted to take to the open road and speed
to the front of the pack. In our seventh annual Fast Track list, we
spotlight those who have raced ahead in some of the country's most
competitive markets.
Source: BUILDER Magazine
Publication
date: 2005-09-01
By Michele Mariani
FEW BUILDERS CAN COMPLAIN ABOUT THE RIDE THE housing market has
taken them on during the last decade. At times, it's been almost as
if speed limits haven't existed, as low interest rates, buyer
demand, and price appreciation have combined to accelerate builders'
growth well beyond their expectations.
The builders that make up this year's Fast Track list have seen
some of the most extreme growth. As a group, they increased closings
177 percent over the three years from 2002 to 2004 and achieved a
compounded annual revenue growth rate of 60 percent during the same
period. Go
to Fast Track 2005 Chart
Lake Oswego, Ore.–based Buena Vista Custom Homes leads the pack,
with a 1,083 percent revenue growth rate and an astounding 7,300
percent growth in closings. Its fellow builders in the top 10 have
posted impressive numbers too; they've kept up an impressive pace of
growing revenue, 100 percent or more across the three years. What's
more, this year marks the debut for each on the Fast Track.
Many companies making the list this year build in markets that
are tough to break in to, where public builders dominate the
landscape, the top 10 builders control more than 50 percent of the
starts, or it's notoriously difficult for any company to grab market
share. Yet they've managed to navigate through the traffic to gain
on their competition. For example, Reno, Nev.–based Altmann Ott
Homes and Pageantry Cos.' Seattle division have each cracked the top
10 in their markets.
This year's rookies might be well served to study the maneuvers
of the Fast Track veterans: D.R. Horton, Neumann Homes, Sotherby
Homes, and Toll Brothers all made the list for the seventh
consecutive year. With the changes those builders have experienced
since first hitting the Fast Track, it's clear that it is possible
for companies to make quick turns and change gears—and even brake a
little—while continuing to rank among the home building industry's
fastest.
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