Key Takeaways from the 2022 Builder 100 Conference

Nearly 400 builders attended the largest Builder 100 Conference from May 2-4 in Dana Point, California. The 2022 conference theme, The Great Reshuffle: Building the Future of Housing, centered around current design, technology, labor, and capital challenges to help inform and inspire the industry to prepare for the future while continuing to innovate in the present. The 16 conference sessions and award ceremony provided attendees with actionable takeaways, valuable knowledge, and inspiration to bring back to their businesses. Here are a few takeaways from the conference.

Economic road map
During the economic outlook session, Zonda chief economist Ali Wolf discussed the impact of high inflation rates on the overall economy as well as the Federal Reserve’s plan to incrementally raise rates to combat inflation and avoid an economic recession. In part due to higher interest rates, monthly payments have increased by as much as 30% in some major metros since the beginning of 2022. Wolf cautioned attendees that the ‘If you build it, they will come’ landscape will not persist indefinitely and demand will begin to come down. As part of her forward-looking remarks, Wolf projected single-family starts to grow between 2% to 5% in 2022 and new-home sales to grow 1.8% in 2022. Sales, however, will be dependent on supply, sales caps, and affordability.

Executive Perspective
John Ho, CEO of Landsea Homes, Ryan Marshall, CEO of Pulte Homes, and Joel Shine, CEO of Exceller LLC joined Zonda senior managing principal Tim Sullivan for the CEO Power Panel, discussing how to gain competitive advantages as well as overcome challenges amid ongoing supply woes, labor concerns, and rising costs. The executives forecast that prices may continue to go up even as the market flattens, with pricing relief coming by mid-2023. The CEOs also spent time contrasting the current market to the Great Recession, noting that in the recession the market was overbuilt with banks handing out unqualified mortgages while the current market is underbuilt and banks are far stricter on mortgages.

Future of Work and the Marketplace
During her keynote session, Kim Lear, founder and content director of Inlay Insights, helped attendees gain perspective and understanding of their teams, customers, and communities through data-backed research and surveys. Lear shared that generational paradigms are beginning to disrupt workplace norms and companies can stay ahead by challenging conventional thinking and creating empathetic and customized experiences. Companies can succeed, according to Lear, by understanding how each generation differs and what resonates with members of different generations and, from them, learning how to effectively communicate with team members from each generation.

Future of Build to Rent
The build-to-rent space is gaining traction in the single-family industry, but panelists during the “Subdivision of the Future? Mixing it Up with Rental and For Sale” session cautioned that while the space has a strong runway, it is not right for every builder and developer. Brent Landry, senior vice president of development of American Homes 4 Rent, Darin Rowe, national president of Built-To-Rent for Taylor Morrison, and Blair Sweeney, managing director of build for rent of Landmark Properties shared it is most important to understand your consumer and understand why some are looking to rent instead of looking to buy. Above all, builders should focus on minimizing costs to provide a consistent lifestyle for residents and on offering only amenities that are valued while also maintaining “the fresh feel” of homes and communities.

Builder Awards
In addition to the education sessions, four awards were handed out during the Builder 100 event. Landsea Homes was honored as the Builder of the Year for the company’s historic year, becoming a public company, exceeding $1billion in revenue, and expanding into new markets in Texas and Florida. Nelson Mitchell of HistoryMaker Homes was the 2022 Hearthstone BUILDER Humanitarian Award winner, recognized for raising over $14.5 million to benefit children with disabilities, impoverished communities, veterans, and local homeless populations. Vancouver, Washington-based Holt Homes closed 265 more new homes in 2021 and climbed 37 spots on the Builder 100 list to the No. 85 spot, earning the Biggest Mover distinction, while New Tradition Homes jumped 43 spots from 190 to 147 on the Builder Next 100, earning the Biggest Mover Next 100 award.

For a full recap of the event, with key takeaways from each conference session, visit the Builder 100 Key Takeaways page on the Zonda website.