Residential Construction

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Residential construction Residential construction is the business of building and selling individual and multi-family dewellings. The market fragments into single-unit, manufactured, duplex, quad-plex, and apartments and condominiums. Manufactured housing further divides into mobile homes and pre-built houses. The business varies primarily in the size and scale of the operations. In the simplist form, a builder buys a peice of land, develops the land by clearing and grading it, and constructing roads, sidewalks, drainage, waste removal, electrical and water supplies.

The Residential construction Environment

Each builder has to run something like a factory where the flow of product is fairly steady. Translated into builder’s terms this means that the builder needs a ready supply of developed land, a pool of ready and available skilled and semi-skilled laborers, reliable suppliers who provide materials at competitive prices, working capital to cover labor, supply, and living expenses while the homes are under construction, and an approach to marketing his products. The more successful builders are able to keep at least one construction crew busy on a continuous basis. This means that at any given time three to six homes will be under construction.

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