Key facts
- Homebuilding firms must focus on operational efficiencies and cost controls in a challenging market.
- Schaefer Homes aims to double its production from 40 homes this year to 160 in 2028.
- The HousingWire Homebuilder Summit focused on practical strategies for companies to improve operations.
- Key constraints for homebuilders include land, labor, lending, approvals, and materials.
Homebuilding companies are facing a challenging market that requires a strong focus on operational efficiency and cost management, rather than relying on external tailwinds. Jim Schaefer, CEO of Schaefer Homes, emphasized the critical juncture companies face when reaching $20 million to $30 million in annual revenue, a point where professionalization is key but resources are limited. He shared insights gained from the HousingWire Homebuilder Summit in Dallas, where leaders discussed practical strategies for improvement.
Schaefer Homes, which saw a 68% increase in closings in 2025, plans to double its production by 2028, acknowledging that growth must come from internal improvements rather than favorable market conditions. The company is learning from peers like Jim Lemming of Partners in Building on how to optimize construction processes and material management.
NAHB Chief Economist Rob Dietz outlined five key constraints for homebuilders: lots, labor, lending, local approvals, and lumber. However, an additional critical constraint is the organization's internal capacity to make sound decisions, execute consistently, and adapt to changing conditions, which a difficult market will expose.