Technology

Data, Tech's Role In Powering Homebuilding's Land-Light Pivot

Homebuilders are shifting to land-light, capital-efficient models — and data is the key to success. "Builders don’t have the luxury of guesswork anymore," says Constellation HomeBuilder Systems’ Paolo Benzan.

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Technology

Data, Tech's Role In Powering Homebuilding's Land-Light Pivot

Homebuilders are shifting to land-light, capital-efficient models — and data is the key to success. "Builders don’t have the luxury of guesswork anymore," says Constellation HomeBuilder Systems’ Paolo Benzan.

Together with
January 29th, 2025
Data, Tech's Role In Powering Homebuilding's Land-Light Pivot
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The American homebuilding business is poised and pushing for a structural shift — a shift away from traditional speculative real estate cycles toward leaner, more operationally disciplined models.

This shift is driven by high capital costs, technology’s relentless march forward, consumer affordability challenges, and the growing entanglement of global supply chains.

For many builders, the playbook is changing: owning less land, taking on fewer capital-intensive risks, and instead doubling down on operational excellence, data-driven decision-making, and vertical construction efficiencies. This shift—toward asset-light, land-light, land-banking partnerships—is already reshaping how builders structure their businesses and plan for the future.

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As we noted yesterday here:

As the nation's largest public builders embrace asset-light, land-light models — following the footsteps of pioneers like NVR Inc. and latter-day acolytes like Dream Finders Homes and Smith Douglas (SDHC) — a clear truth has emerged: to succeed, builders must focus on what they do best.
This means doubling down on core competencies like product design, construction velocity, marketing, and customer care while leaving the risks – and at least some of the rewards of land speculation – to specialized land banking partners.
This seismic shift doesn’t just transform how builders acquire and manage land. It demands a complete rethinking of organizational priorities, team structures, and skillsets."

In this new reality, access to clean, real-time, and comparative operational data is no longer a nice-to-have. It’s essential.

That’s where BuilderMetrix — a data and analytics platform developed by Constellation HomeBuilder Systems — comes in. Over the past several years, BuilderMetrix has evolved into a full-fledged, end-to-end operational intelligence platform for homebuilders. It eliminates data silos, automates reporting, benchmarks cost and cycle-time performance, and enables real-time insights that help builders refine operations, negotiate better contracts, and gain an edge in an increasingly competitive market.

We’re at a point where a builder – if they leverage BuilderMetrix – has a lot of tools available for operationally defining margin," says Paolo Benzan, Vice President for Data Strategy at Constellation HomeBuilder Systems.

The value proposition for BuilderMetrix, however, is not just efficiency gains. It aligns directly with the asset-light transformation of homebuilding—the shift away from large, capital-intensive land holdings toward a more flexible, capital-efficient, leaner, and meaner way of delivering homes.

Business Model Shift: Asset-Light, Data-Forward

The land-light model is gaining traction among large public builders, mid-sized operators, and even single-market production firms. Companies that once amassed large land inventories are increasingly partnering with land-banking firms to secure lots on a predictable, scheduled takedown basis.

This allows them to focus capital and resources on their core competencies —construction, product design, marketing, sales, and financial services — while reducing their exposure to market fluctuations related to land speculation.

But this strategy also has a challenge: it requires extreme precision in operations, pricing, and execution. The days of "gut-feel" decision-making are over. Builders need hard data — not just their own, but market-wide data that shows them how they compare to competitors on workflows, sourcing and purchasing costs, construction velocity, etc.

At its core, BuilderMetrix is about standardization," says Seamus Mulroy, Product Manager for Data Services at Constellation. "We provide builders with clean, structured data that helps them measure job costs, cycle times, and overall operational performance—benchmarked against anonymized market data."

That benchmarking capability is crucial in today’s market.

Example: A builder expanding into a new market no longer has to rely on secondhand data from local competitors. Instead, BuilderMetrix can provide anonymized comparative cost and cycle-time data, allowing them to negotiate contracts and set expectations based on real, verified numbers.

For a builder going into a new market, it's a game-changer," Mulroy says. "We provide data points they can use to anchor negotiations and ensure they’re not overpaying for land, labor, or materials."

The Competitive Edge

For homebuilders, time is money. Every extra day in the construction cycle erodes margins, while mispriced contracts on materials or labor can cost millions over time.

BuilderMetrix solves for these pain points in several ways:

  • Automated Reporting & Standardized Data: For smaller builders, BuilderMetrix eliminates hours of tedious Excel reporting, saving 6-10 hours per week for operations analysts.
  • Real-Time Data Integration: The platform is moving from nightly updates to real-time data feeds, ensuring every department works from the most current information.
  • Benchmarking & Cost Comparisons: Builders can now compare framing costs, drywall costs, cycle times, and more against anonymized market data, allowing them to renegotiate vendor contracts based on hard evidence.
  • Excel & Power BI Reporting: Instead of forcing builders to abandon their preferred tools, BuilderMetrix integrates directly into Excel and provides powerful Power BI dashboards for executives and managers.

Gamifying Team Performance

One of the coolest things we’ve seen is how builders are using BuilderMetrix to create internal competition," says Mulroy. "In one case, a milestone report we created led to construction managers competing to improve on-time completions—just because they could now see, in real-time, how they stacked up against their peers."

This is how operational intelligence becomes a competitive advantage.

Next Steps

  • Builders: How does your cycle time compare to your competitors? Are you paying more for materials than you should?
  • Technology Leaders: Is homebuilding finally ready for the kind of data-driven transformation that’s already reshaped industries like logistics and manufacturing?

ABOUT THE AUTHOR

John McManus

John McManus

President and Founder

John McManus, founder and president of The Builder’s Daily, is an award-winning editorial, programming, and digital content strategist. TBD's purpose is a community capable of constant improvement.

ABOUT

Constellation provides fully-integrated or standalone software solutions expertly engineered to manage the complete ecosystem of a homebuilder’s business functions and growth.

Website

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ABOUT THE AUTHOR

John McManus

John McManus

President and Founder

John McManus, founder and president of The Builder’s Daily, is an award-winning editorial, programming, and digital content strategist. TBD's purpose is a community capable of constant improvement.

ABOUT

Constellation provides fully-integrated or standalone software solutions expertly engineered to manage the complete ecosystem of a homebuilder’s business functions and growth.

Website

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