The Pacific region of the United States, encompassing Alaska, California, Hawaii, Oregon, and Washington, represents one of the most dynamic and competitive housing markets in the country. According to the 2019 Professional Builder Housing Giants Report, the top home builders in this region closed tens of thousands of new homes in 2018, with lessons from the Housing Giants report offering valuable insights for builders of all sizes. Understanding who leads these markets, how they achieve scale, and what strategies drive their success can inform your own approach to growth and market positioning.
The Pacific Region Home Building Market at a Glance
The Pacific region is defined by its diversity. California alone accounts for the vast majority of closings among the top builders, while Washington, Oregon, Hawaii, and Alaska contribute meaningful volumes. The top 26 builders in the region collectively closed over 35,000 homes in 2018, with the top three companies alone accounting for more than 17,000 closings. California dominates with 28,000-plus closings among the top builders, but Washington contributes over 5,000 and Oregon adds nearly 2,000. This distribution reflects the varying strength of each state’s economy, regulatory climate, and housing demand.
The 2019 Housing Giants report tracks builders across multiple metrics including total closings, revenue, and market share. The Pacific region rankings reveal a market where national production builders compete alongside strong regional players. The concentration at the top is notable: the top five builders control more than half of all closings among the ranked companies, a pattern that holds true in most major regions across the country.
Top 10 Builders by Closings
The following table ranks the top 10 home builders in the Pacific region based on their 2018 new-home closings, broken down by state:
| Rank | Company | California | Oregon | Washington | Hawaii | 2018 Total Closings |
|---|---|---|---|---|---|---|
| 1 | Lennar | 7,165 | 421 | 605 | — | 8,191 |
| 2 | D.R. Horton | 3,059 | 457 | 1,621 | 482 | 5,619 |
| 3 | KB Home | 3,152 | — | — | — | 3,152 |
| 4 | TRI Pointe Group | 2,217 | — | 359 | — | 2,576 |
| 5 | William Lyon Homes | 1,172 | 585 | 495 | — | 2,252 |
| 6 | PulteGroup | 1,577 | — | 341 | — | 1,918 |
| 7 | Shea Homes | 1,684 | — | 117 | — | 1,801 |
| 8 | Toll Brothers | 1,322 | — | 333 | — | 1,655 |
| 9 | M.D.C. Holdings | 998 | — | 320 | — | 1,318 |
| 10 | CBG Building Co. | 1,260 | — | — | — | 1,260 |
Several patterns emerge from this data. California dominates the rankings, but builders with a presence in multiple states consistently outperform those confined to a single market. Lennar, D.R. Horton, and William Lyon Homes all operate across at least three states in the region, giving them diversification advantages that single-state builders lack.
Strategies That Drive Success for Regional Market Leaders
The top builders in the Pacific region did not achieve their positions by accident. They employ specific strategies that allow them to operate efficiently at scale while remaining responsive to local market conditions.
Geographic Diversification as a Risk Management Tool
Builders who operate across multiple states within the Pacific region enjoy a natural hedge against local market downturns. When one state’s housing market cools, activity in another state can compensate. This is the core principle behind how multi-market home builders succeed in maintaining steady production volumes across economic cycles.
Consider D.R. Horton’s presence across California, Oregon, Washington, and Hawaii. This geographic spread allowed the company to close 5,619 homes in the region in 2018. Even if the California market had softened, the company’s operations in other states would have provided a buffer. This diversification strategy is a hallmark of the largest national and regional builders.
Operational Efficiency Through Scale
Scale brings purchasing power, standardized processes, and the ability to invest in technology and talent that smaller builders cannot match. The top 10 builders in the Pacific region all leverage their size to negotiate better pricing on materials, streamline construction schedules, and maintain larger sales and marketing teams.
Key areas where scale drives efficiency:
- Material procurement Volume purchasing agreements with suppliers reduce per-unit costs by 10 to 20 percent compared to smaller builders
- Trade partner relationships Larger builders offer consistent work volumes that attract and retain the best subcontractors
- Design standardization Repeating proven floor plans across multiple communities reduces design costs and construction errors
- Marketing reach Larger budgets enable brand-building campaigns that drive buyer awareness across entire regions
For builders looking to grow their operations, scaling operations for sustainable growth requires investing in these same capabilities, even if the initial investment feels steep.
Market-Specific Positioning
Despite their scale, the most successful builders in the Pacific region tailor their approach to each local market. The buyer profile in San Francisco differs significantly from the buyer profile in Portland or Honolulu, and builders who ignore these differences lose market share to more nimble competitors.
For example, KB Home concentrates entirely on California in the Pacific region, closing 3,152 homes. This focused approach allows the company to develop deep expertise in California’s regulatory environment, land acquisition dynamics, and buyer preferences. Similarly, regional players like Shea Homes and CBG Building Co. focus primarily on California, competing effectively against national giants by knowing their market intimately.
Smaller builders facing competition from these larger players can learn from strategies for competing with big builders through market-specific branding and targeted community development.
Performance Breakdown by State
Each state within the Pacific region presents unique opportunities and challenges for home builders. Understanding the specific market dynamics of each state is essential for any builder considering expansion or looking to strengthen their position.
California
California remains the dominant force in the Pacific region, accounting for over 80 percent of all closings among the top 26 builders. The state’s housing market is driven by strong job growth, particularly in technology and professional services, combined with chronic housing supply constraints that keep demand elevated.
The top builders in California:
- Lennar leads with 7,165 closings, more than double the next closest competitor
- KB Home and D.R. Horton each closed over 3,000 homes
- Nine of the top 26 builders operate exclusively in California, highlighting the state’s ability to sustain dedicated market players
Washington
Washington’s housing market, fueled by the Seattle metropolitan area’s tech-driven economy, attracted significant activity from national builders. D.R. Horton led with 1,621 closings, followed by Lennar at 605 and William Lyon Homes at 495. The state’s strong job market and desirable quality of life continue to drive housing demand across all price points.
Oregon
Oregon, while smaller in total volume, showed a balanced distribution of activity among top builders. William Lyon Homes led with 585 closings, followed by D.R. Horton at 457 and Lennar at 421. The Portland metro area drives most of the state’s new-home construction, though builders are increasingly looking to secondary markets like Bend and Eugene for growth opportunities.
Hawaii and Alaska
Hawaii and Alaska represent niche markets within the Pacific region. D.R. Horton closed 482 homes in Hawaii, and Brookfield Residential Properties added 63. Alaska saw limited activity among the top 26 builders, with only Habitat for Humanity International reporting 4 closings in the state. These markets present unique logistical and regulatory challenges that deter all but the most committed builders.
Key Takeaways for Builders at Any Scale
The data from the 2019 Housing Giants report offers actionable insights that apply to builders of all sizes, not just the national players at the top of the rankings.
Five Lessons from the Pacific Region Leaders
- Diversify your market presence. Even within a single region, operating in multiple states or metropolitan areas reduces your exposure to local economic downturns. Start by expanding into adjacent markets where your existing trade partners and suppliers can follow.
- Invest in operational systems early. The processes that support 500 homes per year are not the same as those needed for 5,000 homes per year. Build your operational infrastructure before you need it, not after you are already struggling to keep up.
- Know your local market intimately. National scale does not replace local knowledge. The best builders combine the efficiency of standardized processes with the flexibility to adapt to local buyer preferences, regulatory requirements, and market conditions.
- Build strong trade partner relationships. Your subcontractors are your most valuable operational asset. Treat them as partners, pay them reliably, and provide consistent work volumes. The top builders in the Pacific region all maintain long-term relationships with their trade base.
- Track your metrics relentlessly. The companies that top the Housing Giants rankings did not get there by intuition alone. They track closings, cycle times, customer satisfaction, and financial performance with discipline. Use data to drive every major decision.
Competing Against the Giants
For smaller and mid-sized builders, competing against the Lennars and D.R. Hortons of the world can feel daunting. However, regional and local builders have advantages that the giants cannot replicate: deeper community relationships, faster decision-making, and the ability to offer truly customized homes. The builders ranked 11 through 26 in the Pacific region demonstrate that focused regional strategies can sustain healthy volumes even in markets dominated by national players.
The key is to identify your competitive advantage and lean into it. If you build in a specific neighborhood or community, own that positioning. If you offer higher levels of customization than the production builders, make that the centerpiece of your marketing. The Housing Giants data shows that there is room at every level of the market for builders who execute well.
The Pacific region’s housing market will continue to evolve, but the fundamental strategies that drive success remain consistent. study the leaders, adapt their best practices to your scale, and stay focused on delivering quality homes that meet the needs of your buyers.