The study shows 2021 as a record breaking year for profitability and volume. Volume increased 18 percent with 45 percent of builders earning more than 10 percent net profit, and 38 percent earning more than 12 percent net profit. Four builders reported losses for the year in the under $20 million quartile. Two of the companies are startups where closings have not yet reached the anticipated numbers. For small companies, loss of closings typically have a greater negative impact on profitability.

Unlike in 2020, when most of the builders participating in the study with sales under $50 million experienced below-average profitability, builders of all sizes were able to achieve superior profitability in 2021. Even though 2020 was a record-breaking year for profits, only builders with volumes of $50 million or more reported higher than average profitability for the group. Small builders appeared to have been less equipped to react and make the necessary adjustments required to thrive during the pandemic.