Where Fortune Shines, So Too Do Homebuilders That Excel In People
America, its homebuilding and residential development business community leaders, and tens of thousands of team members are grappling with a generational challenge regarding housing supply, demand, attainability, and sustainable value creation.
To glimpse and understand who and which organizations will have the staying power to continue that generational struggle to its best possible solution, it's critical to understand large and small enterprises' access to at least three non-negotiable wells of capital: Money, Local Community, and Talent.
Let's focus on that third type of capital for a moment with a brief digression.
Silicon Valley business pioneer, venture capitalist, and author Ben Horowitz talks about people being as important as money or time or any other precious business resource in his book, "The Hard Thing About Hard Things" this way:
I came to work [today] because it's personally important to me that [you name the company] be a good company. It's important that the people who spend twelve to sixteen hours a day here, which is most of their waking life, have a good life. It's why I come to work ... In good organizations, people can focus on their work and have confidence that if they get their work done, good things will happen for both the company and them personally. It is a true pleasure to work in an organization such as this. Every person can wake up knowing that the work they do will be efficient, effective, and make a difference for the organization and themselves. These things make their jobs both motivating and fulfilling."
Homebuilding's business leaders may rightfully see oceans of difference between their enterprises and Silicon Valley-style firms. Still, more leaders probably feel the same way Horowitz does regarding why they come to work daily.
At a time when U.S. homebuilding stands at the crossroads of economic uncertainty and opportunity, the companies recognized in Fortune’s 2024 "Best Workplaces in Construction" offer a blueprint for how to navigate the volatility and complexity ahead.
In a sector that has faced ongoing labor shortages, rising costs, and market unpredictability, eleven homebuilding enterprises — both large and small —have not only weathered the storm but have thrived by investing in their people and fostering resilient, high-performance cultures.
This year’s honorees include PulteGroup, David Weekley Homes, Tri Pointe Homes, Meritage, Lennar among the large enterprises, and Drees Homes, Schell Brothers Homes, Smith Douglas (SDHC), Hayden Homes, Rhodes Enterprises (Esperanza Homes), and Davidson Homes in the small-to-medium company category. These firms have demonstrated that being a great place to work is more than a title — it’s a strategic advantage that sets them apart as builders of choice.
Resilience in Uncertainty: The Context
The recognition of these companies arrives at a particularly pivotal moment. This week, the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve is expected to make a key decision that could begin to reverse a two-and-a-half-year trend of rising interest rates. Homebuilders are closely watching this development, anticipating that lower borrowing costs could reignite demand for new homes and stimulate market activity, especially among first-time buyers. But with uncertainty still hanging in the air — particularly around the possibility of rising unemployment and political volatility leading into the November 2024 elections — homebuilders must remain agile and prepared for whatever comes next.
In this environment, the firms recognized in Fortune’s 2024 list stand out for their ability to sustain high performance while remaining nimble and responsive to external pressures. As we noted in a Spring 2023 article, the ability to nimbly and decisively respond to volatility, uncertainty, complexity, and ambiguity (VUCA) is one of the defining characteristics of high-performing organizations. For these homebuilders, creating a culture where employees feel engaged, empowered, and committed isn’t just a "woke" pipe dream nor a "nice-to-have" — it’s essential for navigating today’s turbulent market.
Team Member Experience
A key theme emerging from this year’s Fortune recognition is the direct relationship between team member experience and customer experience. As noted earlier, when employees feel valued and engaged, they are more likely to deliver exceptional service to customers — whether those customers are homebuyers, partners, or subcontractors. This connection is particularly relevant in homebuilding, where projects are complex, tight timelines, and high stakes.
For companies like David Weekley Homes — recognized for 17 consecutive years —the investment in team member experience has long been a core part of their strategy. David Weekley, founder and chairman, has often spoken about the importance of putting both team members and customers at the heart of the company’s mission. As he said in a 2010 executive event,
This is not ever about us. This is always about our customers.”
His definition of "customers" extends beyond homebuyers to include team members, partners, and anyone involved with the company. This holistic approach to leadership has been a cornerstone of the firm’s resilience, allowing them to thrive even in uncertain times.
Passion, Trust, and Capability
In today’s homebuilding industry, where skilled labor is in short supply and costs are rising, the firms recognized in Fortune’s list have something in common: they have cultivated a culture of passion, trust, and capability. As Gary Tesch, Regional President at Coventry Homes, highlighted in a September 2022 article, passion is a non-negotiable element of success in this business. Whether it’s on the job site or in the office, passion fuels the energy and commitment needed to get the work done—especially when the market is tough.
Trust, too, plays a critical role. As Doug Gilleland, President of Taurus of Texas, observed,
People in our line of work need to feel something that makes them want to go beyond the call of duty.”
For the companies recognized this year, trust is embedded in every level of their organizations. This trust allows teams to move swiftly, make decisions, and adapt to changing market conditions without hesitation.
Builder of Choice: A Distinction Beyond Profits
The honorees on this year’s Fortune list have earned their status not only through financial success but by becoming builders of choice — for employees, customers, partners, and stakeholders alike. For example, PulteGroup, which has made Fortune’s list three times, has placed a strong focus on diversity, equity, and inclusion, making it a leader not just in homebuilding but in building a workplace where people from all backgrounds can thrive.
As Ryan Marshall, PulteGroup’s CEO, noted,
We and our partners get to play a major role in one of the most meaningful parts of people’s lives, their homes.”
Similarly, Tri Pointe Homes, which made its first appearance on the list in 2023, has quickly earned a reputation for fostering an empowered and engaged workforce. Heather Breidenthal, Chief Human Resources Officer at Tri Pointe, noted that engaged team members are the key to navigating the challenges of the housing market — from labor shortages to supply chain disruptions.
Empowered and engaged team members respond better to changes," Breidenthal told us. Whether it be a pandemic, supply chain issues, or changing market conditions, it’s our exceptional team members that make all the difference.”
Preparing for the Future
As the housing market stands on the edge of potential change, these companies have proven that building a great workplace is a crucial strategy for weathering any storm. The Fortune 2024 "Best Workplaces in Construction" honorees have made intentional, budgeted, and committed investments in their people, ensuring that they can adapt to whatever comes next—whether it’s a surge in demand sparked by lower borrowing costs or further uncertainty caused by economic and political headwinds.
As I wrote in September 2022,
An 'experience economy' means team member experience is a pragmatic bulwark of company success and profitability.”
In today’s market, where the challenges are complex and the outlook uncertain, the firms that have cultivated engaged, empowered teams are better positioned to succeed.
The Leadership Challenge Ahead
The leadership challenge for today’s homebuilding executives is clear: invest in your people, build trust, and foster passion. These are the building blocks of a resilient, high-performance culture that can thrive in the face of uncertainty. As the Fortune 2024 honorees have demonstrated, being a best place to work isn’t just a recognition — it’s a strategy for near-, medium-term, and long-term success. Whether the market turns toward recovery or faces further disruption, the companies that have prioritized their teams will be best equipped to seize the opportunities and navigate the challenges ahead.
It's no accident that Ben Horowitz entitles his book, "The Hard Thing About Hard Things."
One of the ways he sums that up, we're sure every homebuilding company CEO or president can relate to:
- Being a good company doesn't matter when things go well, but it can be the difference between life and death when things go wrong.
- Things always go wrong.
- Being a good company is an end in itself.