Wonder

Research Outline

Prepared for Daniel L. | Delivered March 21, 2020

IRR: Residential Construction Projects

Goals

To determine what is the Internal Rate of Return (IRR) of typical residential construction projects for different types of residential construction companies with an overview of estimates on IRR of the residential construction industry in US and Europe from different players in order to have a benchmark in the industry.

Early Findings

Our preliminary research on the US residential construction industry revealed insights. Here are key pieces of information we found:
IRR: Residential Construction Projects:Overview of US Residential Construction Industry Spending for new residential construction continues to increase in the US, especially in the private development of single-family homes and home improvement projects.
 Single-family residential construction currently has an estimated value at $282 billion dollars.
 Multi-family residential construction currently has an estimated value at $67 billion dollars.
An overview of estimates on IRR in the US residential construction industry could range from 10-20%.
 Major players in the US residential construction industry based on revenue include: Bechtel, Taylor Morrison, D.R. Horton, Inc., Lennar Corp., Pulte Group, NVR, Inc., KB Home, Meritage Homes, Toll Brothers, Century Communities, and LGI Homes.