New residential construction is responsible for the consumption of approximately 40% of the softwood lumber produced in North America. Although residential construction techniques vary considerably and the North American homebuilding industry is generally quite fragmented, an emerging US market segment is growing as a result of consolidation. In 2003, the Top 100 U.S. homebuilders each built between 701 and 37,662 new homes1. Figure 1 shows the evolution of the Top 100 homebuilders in the U.S. since 1996. In 2003, the Top 100 builders captured approximately 35% of the residential housing market.
Previous research reveals that when compared to their smaller counterparts, larger builders are significantly more concerned with energy issues, moisture failures, lumber availability, trade availability, material costs, speed of assembly and on-site waste. Additionally, they are more likely to substitute site-built structures with either prefabricated walls or steel studs.