Business Models of House Building Companies 

Two popular house building companies, BM 1a, and BM 2a are similar in many ways. Both companies act as main contractors, guaranteeing product quality and delivery. Both engage local subcontractors to perform foundation preparation and assembly, and both target the same market niche. However, BM 1a is more targeted at high-end home buyers, whereas BM 2a targets a much broader market with middle to upper-income families. 

Case Studies 

This study presents the business models of two leading Swedish house-building companies to highlight the factors that determine the success of such firms. Such business models can contribute to increased house-building in particular customer segments while reducing costs and improving the quality of new homes. The study focuses on product-oriented house-building models, which are relatively under-researched but provide essential knowledge for researchers. These case studies of two companies reveal their success stories and demonstrate the importance of business model diversity in the development of new house-building companies. 

The challenges facing a homebuilder are diverse: the company must respond to local demand conditions, navigate the complex web of regulations and interact with a large number of subcontractors. It must be financially stable and maintain sufficient scale to meet the demands of local markets, as well as respond to the inherent cyclicality of the industry and the sensitivity to changes in household income and interest rates. The company must also maintain a strong and consistent brand image that can differentiate it from competing companies in the market. 

Case studies can be compelling when they include examples of how customers handled unexpected problems, worked with the home-design team, and were responsive after the sale. Case studies can also include future new-construction homes. Describe what future homebuyers will want in a new house. Feature photos of the buyer’s new home and explain the benefits of each feature. Also, make sure to provide a list of steps they took to find the perfect home. 

The Business Model 

Business models of product-oriented house building companies are not familiar to many practitioners. Although these companies are relatively new in the industry, the models they use are fundamentally different from the models used by traditional building companies. These models can help clarify the way in which these companies operate, and explain how they create value and how they make a profit. This study will offer some insight into the business models of two leading Swedish house-building companies. 

The key difference between a product-oriented and a process-oriented company is their approach to innovation. Product-oriented companies focus on improving their offerings by continuously refining them. This is a long-term strategy as copycat products can dilute the market and result in a loss of market share. Product-oriented companies can generate demand and innovate with new technologies, leading to a higher level of customer satisfaction. 

Common Traits 

While every home is unique, there are some common traits that are a hallmark of a LEED-certified house building company. For starters, all of them are built using environmentally friendly building materials. When selecting a home building company, ask about the type of certification they hold and whether they are willing to share the certification process. The LEED for Homes rating system aims to balance sustainable building goals with the realities of the green building market. This system takes into account a wide range of choices for the typical homeowner, including homes built with modern environmental features. On the other hand, many LEED-certified houses adhere to local building methods, maintain compact forms, and push the envelope in environmentally friendly construction. One example of a business that has this certification is Brookhaven Homes

As part of the certification process, LEED-certified houses use energy-efficient HVAC equipment and are insulated for comfort. These features reduce the homeowner’s overall heating and cooling bills. Some of the other features that distinguish LEED-certified homes from other types include prime insulation in walls, floors, ceilings, and shafts. Additionally, they use minimal lighting and good ventilation to keep the house at a comfortable temperature year-round. 

In addition to a commitment to sustainability, LEED-certified houses are also generally large, luxurious, and environmentally friendly. Although there are varying levels of certification, the most widely-used version is LEED v4, which is the most transparent and inclusive platform. LEED v4 houses require a green rater to conduct at least two site inspections. However, these projects must be completed in accordance with certain guidelines and requirements. 

Some U.S. federal agencies and state governments require that a building be certified by LEED. This certification helps the homeowner earn tax credits, zoning allowances, and expedited permitting. Many LEED-certified offices have higher rents, occupancy, and capitalization rates than their non-certified counterparts. While LEED certification may be a coveted goal, some consumers aren’t convinced that it’s worth the hassle. 

Green Building Council 

If you’re in the house building business, it’s beneficial to become a member of the USGBC or Greenbuilding Council. USGBC members represent diverse groups in the building industry, including real estate leaders, contractors, architects, engineers, and finance institutions. These groups are comprised of nearly 162,000 LEED professionals and are dedicated to the triple bottom line – economic, social, and environmental prosperity. Interested in learning more about becoming a member of the USGBC? Read on to discover the many benefits of joining the organization. 

Joining the GBC is free and easy. It requires only a few hours a week – around ten to twenty hours per week – and a six-month commitment. However, if you’re interested in helping the building industry, membership may be the best way to get started. Membership in the GBC is a great way to gain valuable insight into sustainable construction practices. You’ll also be supporting sustainable architecture as a business and improving the quality of life for people in urban areas. 

EDGE certification is an internationally recognized certification system that helps house builders and developers become more resource efficient. EDGE certifies projects using the most energy-efficient practices, and provides a toolkit for developers and builders to implement these practices. It also includes the Investor Ready Energy Efficiency Certification, an evidence-based standard for commercial and multi-family residential buildings. Members can choose to participate in USGBC’s leadership roles on a number of projects to achieve these standards. 

Ben Ross is a first-year student at Pomona College in Claremont, California. He hopes to major in Environmental Analysis and Public Policy. He’s passionate about sustainability and wants to apply his interest in fire safety and risk management to different contexts. In addition to this, he is actively involved in USGBC’s Los Angeles Green Building Corps and enjoys networking with fellow members. And he’s interested in developing new business connections. 


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