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Fast track 2006: experience has never been more valued than right now, as builders deal with the double whammy of robust competition and weakening sales. In our eighth annual Fast Track list, we examine the secrets of fast-growing builders' success--and what they're doing to keep the pace.

HALF OF THE COMPANIES ON THIS year's Fast Track opened shop after 1993. More than one fifth have started since 2000. That means many of the fastest-growing home building companies have known only good--or great--times.

That's changing. In many parts of the country, traffic and sales are slowing. Both public and private companies are revising their projections for 2006 and 2007 downward, and some already are selling land and laying off employees to curtail costs.

It's times like these when experience counts. Even among recent startups, many executives of the companies on this year's list can boast of decades in the industry, often spent in the offices of the largest national builders. Few were CEOs during the bust of the late 1980s and early 1990s, but they learned important lessons about what to do--and what to avoid--while heading construction, sales, and land operations. They paid their dues, climbed the corporate ladder, and sometimes even tripped on their way to becoming their own boss.

These entrepreneurs know 2004 and 2005 might have been aberrations, and many seem prepared for a downturn. Their plans for surviving, and even thriving, through a rough patch resemble what they did to leap on to the Fast Track in the first place, minus buyer frenzy and outrageous price appreciation. They say they're exercising caution on hind deals, reining in overhead, and adjusting pricing and product to appeal to a wider cross section of buyers. If the industry instinct that's served them well for so many years holds true, next year's Fast Track may be slightly less speedy, but just as solid.

Career Years

THEY'VE SEEN THE highs and the lows. They've managed million-dollar organizations and scraped together pennies. These professionals know the ins and outs of the home building industry, and they've used that knowledge to post incredible gains while preparing their companies for the challenges ahead.

PERFECT PITCH

Ken Richardson

Owner and Senior Partner

Richardson Homes

YEARS AS A VICE PRESIDENT OF sales and marketing for candy companies soured Ken Richardson on the corporate rat race. So, in 1983, he turned down his employer's request that he relocate from his home in Oklahoma City to the corporate headquarters in Chicago, and with no prior home building experience, he decided to become a custom home builder. He spent four months driving his pickup truck through new-home communities, stopping to ask contractors about the building process.

He ventured into home building debt free, which made trading his $80,000 salary for $9,400 his first year in business easier. His business plan--which included building at least 20 homes a year from the outset--hinged on providing higher quality at lower prices than his competitors. (To this day, his homes are as much as $30 per square foot cheaper than those of nearby custom builders.)

Despite his building-free background Richardson was optimistic he'd succeed. "I'm a professional when it comes to sales and marketing," he says. "If you can sell the homes at a profitable price, you can grow." With the aid of strong employees and subcontractors, Richardson hit his goal by his fifth year in business, when he closed 25 homes. In 2005, his company built 63 custom homes, half of which Richardson categorizes as "executive homes," with more than 3,500 square feet.

Richardson credits much of the company's recent growth on a new sales and marketing strategy: television advertising. In 2004, he began pouring $300,000 annually into the ads, which reach the entire Oklahoma City metro area during the morning newscast. Though Richardson expects to close roughly the same number of homes this year as last, the geographic reach he's gained through the ads has helped him build a safety net if a slowdown appears. "If building drops in half, I'm getting my share out of the whole Oklahoma City area," he asserts. "If you build in two developments and they're dead, you're out of business. I may need to cut back. but I'll survive."
RICHARDSON HOMES

Founded    Closings              Revenue

1983       2003: 34     2003: $8 million
           2004: 50    2004: $11 million
           2005: 63    2005: $14 million

Three-year CAGR *: 32.29%

* Three-yeaThree-year CAGR*: 32.29%


ENTREPRENEURIAL SPIRIT

Michael Gaffney

President

Gaffney Homes

THE NUMBERS ARE WORKING IN favor of Mike Gaffney, a former college math major with a concentration in actuarial science. The president of Charlottesville, Va.-based Gaffney Homes left school and an intended career in insurance behind for a job Barnes and Noble; then he moved to Virginia in 1981 to start his own wholesale textbook business. He needed a place to live, but with "essentially no money, nothing to put down, and no income," he settled for a shell of a house--despite knowing nothing about how to reconstruct the house.

He found a friend to lead the construction; Gaffney acted as the assistant on the job. In the three years it took to finish the job, the building bug bit Gaffney. He began working on other projects with his friend, and in 1987, he sold his first house, moved into a rental, and built a spec house. "If it sold, I was a builder," he says. "If not, I had a great house to move into." The house sold, earning Gaffney just enough to pay for his carpentry work.

His new career in home building stuck, even when the Charlottesville market faltered because of hiring freezes at the University of Virginia, one of the area's top employers. Gaffney switched gears, adding townhome products to his line of semicustom homes and planning for higher unit volume to generate adequate revenue.

Mission accomplished. The company's revenue grew from $8 million in 2003 to $20 million in 2005, and Gaffney estimates he'll bring in $30 million this year. He's pleased with the growth, but he's adding a new title to his resume to buffer against future challenges: student. He entered an executive MBA program in June and plans to graduate in May 2008, while continuing to work full time. "Planning the future growth of my company tells me I need the education and the connections. The financial challenges as we grow are going to be tremendous," he says.
GAFFNEY HOMES

Founded    Closings              Revenue

1987       2003: 16     2003: $8 million
           2004: 25     2004: $8 million
           2005: 45    2005: $20 million

Three-year CAG R*: 58.11%

* Three-year compounded annual growth rate.


BIG BUILDER BOUNCE

David Luecke

President

Capitol Homes

DAVID LUECKE THANKS HIS PAST EMployers-namely, large regional and national builders including The Ryland Group, Crossmann Communities (now owned by Beazer Homes USA), and The Drees Co.--for teaching him important lessons on his way to owning his own business. "They paid for an education every time I made a mistake," he says.

He joined Ryland in the Washington area after graduating from the University of Maryland. He landed in the sales department, where he sold homes and brokered land deals for several years before moving to Drees. Later, he joined Westminster Homes, which moved him to Nashville, Tenn. He climbed the ladder to operations manager at Crossmann before the company folded the Nashville division, leaving him unemployed but hungry to start his own company.

Luecke built Nashville-based Capitol Homes with his previous employers' models in mind and hired Jim Carden, his No. 2 at Crossmann as his operations manager. Those pieces combined with the strong--but not overheated--Nashville market and a relatively simple entitlement process, helped Luecke exceed his business plan goals, "It feels like fantasy," he says of closing 200 homes in 2005, just four years after opening shop.

A witness to the early and mid-1990s real estate bust in the nation's capital, Luecke says he's proceeding cautiously in case Nashville's fortunes falter, a trend some of his peers have already begun to see. He's keeping fixed costs low, partially by renting the cheapest office space he can find, and he's choosing land deals carefully.

"I remember in D.C. in 1993 and 1994--we were writing incredible deals to buy lots because sellers were desperate," he says. "We're trying to build our cash position so if things do slow down, we'll he in the position [to buy]."
CAPITOL HOMES

Founded     Closings              Revenue

2001       2003: 119    2003: $18 million
           2004: 152    2004: $25 million
           2005: 200    2005: $39 million

Three-year CAGR *: 47.20%

* Three-year compounded annual growth rate.


CAREER CULTIVATOR

David Weekley

Chairman

David Weekley Homes

DAVID WEEKLEY HOMES WILL CELEBRATE its 30th anniversary Dec. 1. During each decade, the company has found ways to differentiate itself, first through design, then through quality and customer focus. For the last 10 years, though, the company has singled itself out with its attention to its own employees (called "team members" within the organization). Its programs, including a lucrative bonus structure, have earned the company a spot on Fortune's "100 Best Companies to Work For" list five years running.

David Weekley, the company's founder and chairman, describes its team-driven approach as "an upward spiral" that has helped meet growth, profitability, and customer service goals. "Having a great team creates longevity and success in a company, and that's really proven to be the case," he says.

Weekley has fostered longevity by selling stakes in the company to 13 senior managers, which he also sees as a strategy to keep the company from going public. "It can continue well beyond when I'm here," he says. "Having a great bunch of people pulling on the oars rather than just one is a really positive thing."

He's happily redirected some of the energy required to run such a large company, now with operations in 16 markets. Last year, he stepped aside as CEO, turning over the day-to-day management to president John Johnson. These days, Weekley spends at least half his time using his entrepreneurial skills to help charities grow in the same way his home building operation did so many years ago. "The abilities to see opportunities and develop strategic plans are transferable," he says, adding that he's still able to direct the company's culture, communications, and vision. "It's a nice mix."
DAVID WEEKLEY HOMES

Founded    Closings                    Revenue

1976       2003: 3,549      2003: $949 million
           2004: 3,592    2004: $1,031 million
           2005: 4,612    2005: $1,272 million

Three-year CAGR *: 15.77%

* Three-year compounded annual growth rate.


LIKE FATHER LIKE DAUGHTER

Elise Townsend

President and CEO

Townsend Construction

THE FIRST OF THREE DAUGHTERS OF AN electrical contractor, Elise Townsend grew up on jobsites. In 1993, he took a position as a superintendent with another builder in northern Arizona, always intending to break out on her own once she'd built a strong reputation within the community and relationships with subcontractors.

In 1997, she started Prescott, Ariz.-based Townsend Construction with one house-financed by private investors when banks declined to finance her projects. (She's since raised nearly $40 million in private equity.) She thought big from the outset, immediately putting together a strong management team to implement her vision. She created an in-house design department before she needed it and started excavating, drywall, and landscaping subcontracting businesses to facilitate growth. Those pieces help fill Townsend's new-buyer pipeline, too: Customer referrals generate 90 percent of her sales, so it's crucial to avoid common callback problems, such as incorrectly poured foundations and water damage.

Townsend prides her company on its customer-centric focus. Every design can be altered--exterior walls bear the load, so interior walls can be moved easily--and the company pays special attention to women's design preferences. "Eighty-five percent of house buying decisions are made by the wife," Townsend says. To that end, her homes put a priority on features that make a house function better, such as closets and kitchens. "Between 75 percent and 80 percent of people who walk into our homes say a woman had something to do with this," Townsend says.

With the success she realized in Prescott, Townsend headed south, to a new division in Tucson. Her formula is paying off: That division, which builds higher-end homes in master planned communities, will outpace the original operation in Prescott this year.
TOWNSEND CONSTRUCTION

Founded     Closings              Revenue

1997        2003: 51    2003: $13 million
            2004: 84    2004: $24 million
           2005: 163    2005: $53 million

Three-year CAGR *: 101.91%

* Three-year compounde annual growth rate.


TOP OF THE CLASS

Jeremy York

President and CEO

Presidio Homes

JEREMY YORK ROCKETED HIS COMPANY. Loganville. Ga.-based Presidio Homes, to the top of the Fast Track, closing 95 homes for $19 million in revenue after just three years in business. What's more impressive: He did it with more than a dozen employees who had no home building experience before he hired them.

With his own years as an interior trim subcontractor, York felt he knew the processes that would make the company a success--he just needed the right people to implement them. "I teach them to make the right decision based on the customer, not on the bottom line," York says. "I give them the opportunity to make good decisions. They can make a mistake. We'll talk about it, and the next time, they won't make it again."

York realizes, though, that a strong business doesn't run on instinct alone. He spends $450,000 a year on leadership training, with all employees receiving at least 40 hours of training annually; managers participate in training each week. "I want the people in our organization to feel empowered. That helps them make better decisions." Presidio complements the leadership training with an additional $100,000 in communication training, designed to help build better relationships with subcontractors and vendors.

Right now, a big part of that message is "Get ready for more." York has set a goal of closing 200 homes this year and 400 in 2007. Though some of his competitors are reporting a slowing Atlanta market, York says his business continues to be strong. "We look at it as a need to be more disciplined, but we really haven't missed a beat," he says.
PRESIDIO HOMES

Founded    Closings              Revenue

2003        2003: 3       2003: $500,000
           2004: 46     2004: $7 million
           2005: 95    2005: $19 million

Three-year CAGR *: 516.44%

* Three-year compounded annual growth rate.

HEAD TO HEAD

Small builders made the greatest gains between 2003 and 2005.

                                Small Builders    Midsize Builders

Average compounded                     113.04%              57.96%
annual revenue growth:
(2003-2005)
Average closing growth:                490.55%             170.00%
(2003-2005)
Average 2005 closings:                      53                 415
Average 2005 revenue:              $15 million        $141 million
Average number of employees:                17                 108
Average years in business:                   9                  16

                                Large Builders

Average compounded                      52.82%
annual revenue growth:
(2003-2005)
Average closing growth:                138.22%
(2003-2005)
Average 2005 closings:                   5,303
Average 2005 revenue:           $1,421 billion
Average number of employees:             1,322
Average years in business:                  29


GOING UP: Once again, the small builders (fewer than 100 closings) on this year's Fast Track list posted the greatest gains between 2003 and 2005. It's true that it is somewhat easier to show significant gains when a company is growing from 30 homes a year to 50, but the small builders this year nearly quintupled their unit volume in two years, and they did it with far fewer employees to facilitate the growth than their midsize (between 100 and 1,000 closings) and large (more than 1,000 closings) peers. Annualized revenue growth surged across all three subgroups--though it was no doubt propelled by double-digit home-price appreciations in 2004 and 2005.

BROKEN RECORDS

RETURN TO FORM: The Fast Track's smallest builders made a lot of noise between 2003 and 2005. After falling slightly off the pace they'd set between 2001 and 2003 in last year's report, they've surpassed their prior success and trumped the revenue and closing growth rates of the list's midsize and large companies. Large builders, too, dramatically improved their growth rates between 2003 and 2005, likely as a result of new division startups and pricing power. And although most builders nationwide wouldn't look down their noses at annualized revenue gains of nearly 58 percent, the list's 51 midsize builders saw both their revenue and closings growth dip compared with their performance between 2002 and 2004.
FAST
TRACK
2006
                                             Revenue
                                             Change       2005 Gross
Rank Company/Address/Web Site              2003-2005 *    Revenue **

   1 Presidio Homes                            516.44%           $19
     3755 Harrison Rd., Suite 300,
       Loganville, GA 30052
     www.presidiohomes.com
   2 The Wormald Cos.                          443.14%           $59
     5283 Corporate Dr., Suite 300,
       Frederick, MD 21703
     www.wormald.com

     DRY SPELL: The Wormald family is no stranger to no-growth
     ordinances. The family built in Montgomery County, Md., a suburb
     of Washington, for 20 years before a moratorium on sewer access
     forced a move to nearby Frederick, Md. There, The Wormald Cos.
     introduced Worman's Mill, a 1,500-unit TND community that
     propelled the builder's growth through 2002, when the company
     generated $28 million in revenue. Yet another moratorium five
     years ago--this time on water in Frederick--led to further
     diversification. The company now has about 12 active projects,
     including the rejuvenated Worman's Mill. "We're a lot smarter and
     more proactive now," says Ed Wormald, one of the company's three
     principals (along with his brothers Robert and Ken). "We made a
     strategic decision back in 2001. Instead of fighting [the water
     moratorium], we'd seek work elsewhere."

   3 Elite Comssuutities                       394.97%           $98
     7661 E. Gray Rd., Scottsdale, AZ
       85260
     www.elitecommunities.com

     TOUGHER TIMES: Lance Keller, president of Elite Communities, had a
     front-row seat to the emergence of the Phoenix market, first as an
     employee of KB Home's Phoenix division, and then, beginning in
     2003, as his own boss. His company's tremendous growth--a jump
     from 21 homes in 2003 to 442 last year--stems from a combination
     of excellent timing and a strong partnership with a developer who
     provides a sole source of lots. The exodus of investors has
     stalled the market this year, though, leaving a surplus of
     inventory. Keller expects to close about 500 homes this year, off
     his blistering pace but still showing strong growth. In the
     meantime, he says, Elite is built to withstand market dips by
     focusing solely on home building. The company doesn't include a
     mortgage operation, design center, or land development operations.
     "We're set up for low overhead," he says. "We're built to move."

   4 Hallmark Design Homes                     347.21%           $16
     12946 Dairy Ashford Rd., Suite
       320, Sugarland, TX 77478
     www.halimarkdesignhomes.com
   5 Brookside Homes                           280.06%           $13
     P.O. Box 2696, Wilmington, NC
       28402
     www.brooksidelic.com
   6 MCZ Development Corp.                     250.54%        $1,450
     1555 N. Sheffield Ave., Chicago,
       IL 60622
     www.mczdevelopment.com
   7 Monticello Homes                          231.66%           $22
     9115 S.W. Oleson Rd., Suite 203,
       Portland, OR 97223
     www.monticello-homes-ine.com
   8 Bonterra Builders                         221.46%           $31
     5615 Potter Rd., Matthews, NC
       28104
     www.bonterrabuilders.com
   9 Compass Homes                             200.00%            $9
     3473 Satellite Blvd., Suite 300,
       Duluth, GA 30096
     www.compasshomesga.com
  10 Cornerstone Construction                  191.55%           $17
     3140 E. Nye Lane, Carson City, NV
       89706
     www.cornerstoneconstructionlic.net
  11 Buena Vista Custom Homes                  162.47%          $124
     5665 S.W. Meadows Rd., Suite 150,
       Lake Oswego, OR 97035
     www.buenavistahomes.com
  12 Felson Homes                              123.61%           $10
     4270 W. Price Blvd., North Port,
       FL 34287
     www.felsonhomes.com
  13 Cassidy Homes                             108.17%           $52
     250 Ave. K, S.W., Suite 100,
       Winter Haven, FL 33880
     www.cassidyhomes.com

     Brothers Steven and Al Cassidy started their land development
     business in 1983 and evolved into home builders as a way to move
     excess lots. But a few years ago they started seeing market shifts
     that were making the Winter Haven/Lakeland area in Florida more
     desirable for home buyers, including job growth and limited land
     in the nearby Tampa and Orlando markets. The company's plan to
     capitalize on the growth hinged on securing enough lots to compete
     with arriving regional and national builders. Cassidy Homes
     partnered with Highland Holdings to develop communities that would
     first serve the two builders; excess lots would be sold. In four
     years, they've bought 7,000 acres of land--enough to serve their
     growth and more. "It's ironic," says president Steven Cassidy. "We
     did it as a defensive thing, and now we're the one-stop shop for
     builders looking for lots."

  13 NuWest Custom Homes                       108.17%           $13
     720 S. Colorado Blvd., Suite 940
       N., Denver, CO 80246
     www.nuwesthomes.com
  13 Pillar Homes                              108.17%           $13
     1216 Bowman St., Clermont, FL
       34711
     www.pillarhomes.us
  16 Townsend Construction                     101.91%           $53
     6741 Corsair Ave., Prescott, AZ
       86301
     www.townsendhomes.com
  17 Hamilton Horses                           100.00%            $4
     6701 Alderbrook Dr., Denton, TX
       76210
  17 Lanier-Phillips Construction              100.00%            $2
     119 Savannah Ave., Statesboro, GA
       30458
     www.phillipsdesignerhomes.com
  19 Nino Development                           94.94%           $18
     829 San Benito St., Suite 200,
       Hollister, CA 95023
     www.ninohomes.com
  20 Winnick Homes                              80.28%           $39
     32100 Telegraph Rd., Suite 105,
       Bingham Farms, MI 48025
     www.winnickhomes.com
  21 America's First Home                       75.38%          $203
     385 Douglas Ave., Suite 3350,
       Altamonte Springs, FL 32714
     www.americasfirsthome.net

     MARKET PLAY: The success of America's First Home has moved in
     tandem with Florida's tremendous growth over the last few years.
     But the growth has also presented a challenge: How to remain
     affordable for targeted first-time buyers in a period of rapid
     price appreciation. COO Jack Rostetter admits that the company
     scaled up its product line, and its prices, to compete with other
     area builders. Now, with much of its market area experiencing a
     slowdown, the company has discounted to move inventory but is also
     retooling its offerings to bring prices back under $200,000.
     Rostetter says the company has enough room in its cost structure
     to price homes lower than its competitors can afford to do.

  22 The Dearborn-Buckingham Group              73.21%            $9
     1775 Winnetka Rd., Suite 102,
       Northfield, IL 60093
     www.dbghomes.com
  22 PSG Construction                           73.21%            $6
     803 S. Orlando Ave., Suite A,
       Winter Park, FL 32789
     www.psgconstruction.com
  24 Park Sgsrare Homes                         72.16%          $412
     5200 Vineland Rd., Suite 200,
       Orlando, FL 32811
     www.parksquarehomes.com
  25 Caviness & Cates Building and              67.33%           $56
       Development Co.
     2818 Raeford Rd., Suite 300,
       Fayetteville, NC 28303
     www.cavinessandcates.com
  26 Altman Cos.                                65.33%          $205
     1515 S. Federal Hwy., Suite 300,
       Boca Raton, FL 33432
     www.altmancos.com
  27 Pageantry Cos.                             64.75%          $230
     1333 N. Buffalo Dr., Suite 220,
       Las Vegas, NV 89128
     www.pageantryco.com
  28 SeaGate Homes                              64.40%          $100
     185 Cypress Point Pkwy., Palm
       Coast, FL 32164
     www.seagatehomes.com
  29 The Warmington Group                       63.12%          $769
     3090 Pullman St., Costa Mesa, CA
       92626
     www.warmingtonhomesca.com
  30 Mattangy D.L. Group                        62.91%          $276
     7800 Belfort Pkwy., Suite 200,
       Jacksonville, FL 32256
     www.mattamyhomesfla.com
  31 Brown Fondly Communities                   62.68%          $352
     2164 E. Broadway Rd., Suite 300,
       Tempe, AZ 85282
     www.homebfc.com
  32 Patrick Malkryy Communities                59.43%           $61
     851 Cedar St., Carrollton, GA
       30117
     www.pmcommunities.com
  33 Bauhaus Design Build                       58.11%            $5
     3391 Main St., College Park, GA
       30337
     www.bauhausdesignbuild.com

     SECOND THOUGHTS: Many small builders talk of finding a niche to
     compete with larger competitors, but Bauhaus Design Build
     president Anthony Bondhus has turned theory into real success. He
     markets primarily to buyers who live on Atlanta's north side but
     who want second homes so that during the week they can be closer
     to their children's exclusive private schools on the south side.
     But these aren't standard second homes: Most are at least 3,500
     square feet, and all can be fully customized. Bondhus expects to
     build about 25 this year.

  33 Gaffney Homes                              58.11%           $20
     944 Glenwood Station Lane, Suite
       301, Charlottesville, VA 22906
     www.gaffneyhomes.com
  35 Sotherby Homes                             52.75%          $140
     2400 Dallas Pkwy., Suite 580,
       Piano, TX 75093
     www.sotherby.com
  36 Ginsburg Development Cos.                  51.05%          $575
     100 Summit Lake Dr., Valhalla, NY
       10595
     www.gdc-homes.com
  37 The Mango Cos.                             48.32%           $99
     441 Western Lane, Irmo, SC 29063
     www.mungo.com

     PUBLIC-PRIVATE PLAN: As larger builders began flocking to The
     Mungo Cos.' Charleston and Columbia, S.C., markets about five
     years ago, the builder had to make a choice: either shrink its
     size and concentrate on niche building and land development or
     grow with the goal of attaining a critical mass for purchasing
     power. It opted for the latter. Though the company is well below
     the 1,000 units annually CEO Steven Mungo thinks it needs to hit
     to leverage that purchasing power, its volume is aided by projects
     it completes for city development authorities. Mungo says that
     business will be important this year, as the company's traditional
     home building business has dropped off. "Even if we're flat on the
     free market, we'll be up 10 percent to 15 percent overall in even
     the worst-case scenario for 2006," he says.

  38 Premier Design Homes                       48.00%           $92
     9950 Princess Palm Ave., Suite
       102, Tampa, FL 33619
     www.premierdesignhomes.net
  39  Capitol Homes                             47.20%           $39
     475 Metroplex Dr., Suite 320,
       Nashville, TN 37211
     www.capitolhomesoftn.com
  40 Robest Harris Homes                        47.09%          $119
     12453 Hwy. 92, Suite 400,
       Woodstock, GA 30188
     www.robertharrishomes.com
  41 Centerline Homes                           46.58%          $217
     825 Coral Ridge Dr., Coral
       Springs, FL 33071
     www.centerlinehomes.com
  42 The Mitchell Co.                           46.48%          $339
     41 W. I-65, Service Rd. N., P.O.
       Box 160306, Mobile, AL 36608
     www.mitchelicompany.com
  43 Toll Brothers                              44.93%        $5,793
     250 Gibraltar Rd., Horsham, PA
       19044
     www.tollbrothers.com
  44 Smith Family Homes                         44.91%           $63
     5110 Eisenhower Blvd., Suite 160,
       Tampa, FL 33634
     www.smithfamilyhomes.com
  45 Norris Homes                               44.42%           $73
     2053 Faben Dr., Mercer Island, WA
       98040
     www.norrishomesinc.com
  46 Fieldstone Communiides                     43.92%          $640
     14 Corporate Plaza, Newport Beach,
       CA 92660
     www.fieldstone-homes.com
  46 Holiday Buiiiders                          43.92%          $696
     2293 W. Eau Gallie Blvd.,
       Melbourne, FL 32935
     www.holidaybuilders.com
  48 Pinnacle Homes                             43.10%           $43
     4809 Miller Rd., Columbus, GA
       31909
  49 ICI Homes                                  42.72%          $662
     2379 Beville Rd., Daytona Beach,
       FL 32119
     www.icihomes.com
  50 David James Homes                          41.42%           $10
     1415 Towne Square Blvd., Roanoke,
       VA 24012
     www.davidjamescustomhomes.com
  51 Capital Pacific Holdings                   41.20%          $646
     4100 MacArthur Blvd., Suite 150,
       Newport Beach, CA 92660
     www.cph-inc.com
  52 The Knight Group                           40.51%           $77
     9497 Thornton Blvd., Jonesboro, GA
       30236
     www.knighthomes.com
  53 Levitt Corp.                               40.42%          $558
     2100 W. Cypress Creek Rd., Fort
       Lauderdale, FL 33309
     www.levittcorporation.com
  54 Whitehall Homes                            39.81%           $43
     P.O. Box 2229, Duluth, GA 30096
     www.whitehallhomesatlanta.com
  55 Woodland Homes of Huntsville               38.01%           $40
     7545-A Hwy. 72 W., Madison, AL
       35758
     www.woodiandhomes.com
  56 Southern Crafted Homes                     36.52%           $41
     3840 Land O' Lakes Blvd., Land O'
       Lakes, FL 34639
     www.southerncraftedhomes.com
  57 Astoria Homes                              36.41%          $294
     10655 Park Run Dr., Suite 200, Las
       Vegas, NV 89144
     www.astoriahomes.com
  59 Sandcastle Homes                           36.28%           $13
     1405 Durham Dr., Houston, TX 77007
     www.sandcastlehouston.com
  59 Ivory Homes                                36.00%          $320
     978 E. Woodoak Lane, Salt Lake
       City, UT 84117
     www.ivoryhomes.com
  60 Gemcaaft Homes                             35.96%          $305
     2205 Commerce Rd., Suite A, Forest
       Hill, MD 21050
     www.gemcrafthomes.com
  61 Hamlet Homes Corp.                         35.65%           $92
     308 E. 4500 S., Suite 200, Murray,
       UT 84107
     www.hamiethomes.com

     MARKET WATCH: Michael Brodsky describes himself as "cautiously
     optimistic" about this year's prospects for the Salt Lake City
     market, where Hamlet Homes is the sixth-largest builder. Last year
     was the first in his 12 years in the market that prices
     appreciated more than 4 percent or 5 percent. In fact, they jumped
     so much that Hamlet's revenue spiked almost 40 percent in 2005.
     Strong household formations in Salt Lake City are helping support
     the housing market, but Brodsky says, "I don't know how long Salt
     Lake can buck national trends. I'm expecting a correction at any
     moment." He says he's ready if the correction comes, armed with
     extensive market research, an experienced management team, and a
     willingness to move unsold inventory quickly, including through
     price reductions.

  62 Hovnanian Enterprises                      35.50%        $5,879
     10 Hwy. 35, P.O. Box 500, Red
       Bank, NJ 07701
     www.khov.com
  63 Brass Briclk Homes                         35.40%           $11
     12101 N. MacArthur Blvd., Suite
       317, Oklahoma City, OK 73162
     www.brassbrick.com
  64 Tripp Tradesnark Homes                     34.52%           $38
     24814 State Rd. 54, Lutz, FL 33559
     www.tripptrademarkhomes.com
  65 Sores-Regis Group                          34.50%          $635
     18802 Bardeen Ave., Irvine, CA
       92612
     www.sares-regis.com
  66 Manor Homes                                34.45%           $47
     1226 Royal Dr., Conyers, GA 30094
     www.manorhomes.com

     BE PREPARED: If Gary Lockman's business fell by 50 percent this
     year, he wouldn't have to lay off a single employee for at least
     six months. Lockman, president and CEO of Manor Homes, made that
     tenet a priority after budgeting errors in 1993 led to a short
     period when he was $125,000 short to pay his bills. "I never want
     to be in that position again," he says. "I try to have enough
     money set aside se that I can pay my overhead if I didn't sell one
     house for a year." That hasn't been a problem of late--the
     company's closings hit 223 in 2005 and will approach 330 this
     year--but Lockman intentionally keeps fewer employees on payroll
     than other companies his size might, just in case. "That's the
     biggest lesson," he says. "Be prepared for the unexpected."

  67 67 Hacienda Sunders                        33.30%          $215
     4250 N. Drinkwater Blvd., Suite
       360, Scottsdale, AZ 85251
     www.haciendabuilders.com
  68 Genesis Designer Homes                     32.66%           $44
     41 Park of Commerce Way, Bldg. 2,
       Savannah, GA 31405
     www.genesisdesignerhomes.com
  69 Riclsardson Homes                          32.29%           $14
     2618 E. Hwy. 37, Tuttle, OK 73089
     www.richardsonhomesok.com
  70 Providence Homes                           30.81%           $77
     4686 Sunbeam Rd., Suite 102,
       Jacksonville, FL 32257
     www.myprovidencehome.com
  71 Equity Homes                               30.41%          $216
     4035 Ridge Top Rd., Suite 150,
       Fairfax, VA 22030
     www.equityhomes.com
  72 Dan Ryan Builders                          27.62%          $285
     60 Thomas Johnson Dr., Frederick,
       MD 21702
     www.danryanbuilders.com
  73 Ryan Buiilding Group                       26.74%          $257
     945 N. Plum Grove Rd., Suite G,
       Schaumburg, IL 60173
     www.ryanbldgrp.com
  74 Eliiott Building Group                     26.49%           $56
     3000 Cabot Blvd. W., Suite 200,
       Langhorne, PA 19047
     www.elliottbuildinggroup.com

     MIGRATING SOUTH: Growth is becoming a more difficult proposition
     in the greater Philadelphia market, with an approvals process that
     Elliott Building Group president Brad Elliott calls "a nightmare."
     Approvals that a decade ago took about two years now take four,
     leading the company to look south to Florida, and possibly even
     west to Salt Lake City, for new growth opportunities. Elliott's
     aiming at reaching 500 closings by 2008, a goal that he says will
     require expansion to new markets but won't be deterred by a
     housing slowdown. He estimates that each community might sell 5
     percent less this year, but the company will build in 10
     communities, up from seven a year ago. "There's plenty of room to
     keep growing," he says.

  74 Essex Homes SE                             26.49%           $48
     120 Cromer Rd., Lexington, SC
       29073
     www.essexhomesse.net
  74 Town & Country Home Builders               26.49%           $16
     1922 S.W. Biltmore St., Port St.
       Lucie, FL 34984
     www.pslhomebuilder.com
  77 Arbor Custom Homes                         25.49%          $200
     1550 S.W. Jay St., Beaverton, OR
       97006
     www.arborhomes.com
  78 D.H. Horton                                24.52%       $14,247
     301 Commerce St., Suite 500, Fort
       Worth, TX 76102
     www.drhorton.com
  79 Barratt American                           23.98%          $332
     5950 Priestly Dr., Carlsbad, CA
       92008
     www.barrattamerican.com
  80 Bryant Building Co.                        22.47%            $6
     P.O. Box 700876, St. Cloud, FL
       34770
     www.bryantbuildingcompany.com
  80 Snowden Builders                           22.47%            $3
     2900 Wilson Ave., S.W., Suite 112,
       Grandville, MI 49418
     www.snowdenbuilders.com
  82 Kara Homes                                 21.22%          $288
     197 Rte. 18, Suite 235S, East
       Brunswick, NJ 08816
     www.karahomes.com
  83 Neunnann Homes                             20.63%          $518
     4355 Weaver Pkwy., Warrenville, IL
       60555
     www.neumannhomes.com
  84 Liberty Homes                              20.19%           $13
     100 N. Clayview Dr., Liberty, MO
       64068
     www.mylibertyhome.com
  85 Eastwood Homes                             19.46%          $137
     2857 Westport Rd., Charlotte, NC
       28208
     www.eastwoodhomes.com
  86 Whitestone Custom Homes                    19.21%           $27
     1017 N. Central Pkwy., Suite 139,
       San Antonio, TX 78232
     www.whitestonehomes.com
  87 DeLsaca Enterprises                        18.44%          $195
     107 Floral Vale Rd., Yardley, PA
       19067
     www.delucahomes.com

     MORE MATURE: Alfonso DeLuca started building single-family homes
     in the Philadelphia area in 1963. As his three sons grew older,
     they joined their father on job-sites, learning the trades as
     teens before working full time for the company. Over time, the
     firm added product lines, including active adult communities,
     townhomes, and luxury condos, a panelization plant, and a new
     division in Orlando, Fla. More recently, DeLuca has concentrated
     on reducing cycle times, which are down about 10 percent, and
     implementing an electronic system to improve communication with
     vendors and subcontractors. Those steps should help the company
     meet its goal of building 618 homes this year and 870 in 2007,
     figures that have been revised downward to account for the slower
     sales it has seen in both Philadelphia and Orlando.

  88 Arthur Itutenberg Homes                    16.39%          $382
     13922 58th St. N., Clearwater, FL
       33760
     www.arhomes.com
  89 David Weekley Homes                        15.77%        $1,272
     1111 N. Post Oak Rd., Houston, TX
       77055
     www.dwhomes.com
  90 Manage Homes                               15.47%           $24
     10713 Winterset Dr., Orland Park,
       IL 60467
     www.zausahomes.com
  91 Stillbrooke Homes                          14.17%           $73
     8801 Jefferson St., N.E., Bldg. I,
       Albuquerque, NM 87113
     www.stilibrooke.com
  92 Keystone Homes                             13.90%           $48
     924 Stevens Creek Rd., Augusta, GA
       30907
     www.keystonehomesinc.com
  93 Legend Home Corp.                          13.58%          $169
     10410 Windermere Lakes Blvd.,
       Houston, TX 77065
     www.legendhomescorp.com
  94 Elite Homes                                13.39%           $27
     P.O. Box 43607, Louisville, KY
       40253
     www.elitebuilthomes.com
  95 Shelby Homes                               12.90%          $116
     6363 N.W. 6th Way, Suite 250, Fort
       Lauderdale, FL 33309
     www.shelby-homes.com
  96 Contemporary Garden Homes                  12.55%           $19
     10400 Main St., Houston, TX 77025

     FILLING A NEED: Bill Gray, president of Contemporary Garden Homes,
     says that nearly every project he works on can be considered
     infill or redevelopment. Though infill projects often receive
     preferred treatment, the approvals process has become increasingly
     cumbersome in the Houston market, and Gray is turning to higher-
     density projects to maximize his land profits. The newer products
     have price points beginning at $155,000, compared with $200,000
     for previous townhome products, but Gray isn't worried about the
     decline in revenue per unit. His margins have proved just as
     strong on the condo projects he's completed so far, and he's pro-
     jecting at least a 10 percent increase in gross revenue this year.

  96 Ideal Homes                                12.55%           $57
     1320 N. Porter Ave., Norman, OK
       73071
     www.ideal-homes.com
  98 Forino Co.                                 12.29%           $87
     555 Mountain Home Rd., Sinking
       Spring, PA 19608
     www.forino.com
  99 Suarez Housing Corp.                       10.81%           $97
     9950 Princess Palm Ave., Suite
       212, Tampa, FL 33619
     www.suarezhousing.com
 100 Fischer Homes                              10.73%          $244
     2670 Chancellor Dr., Suite 300,
       Crestview Hills, KY 41017
     www.fischerhomes.com

                                           % Closing
                                            Growth      2005 Closings/
Rank Company/Address/Web Site              2003-2005    What They Built

   1 Presidio Homes                        3,066.67%          95
     3755 Harrison Rd., Suite 300,                          EL, MU
       Loganville, GA 30052
     www.presidiohomes.com
   2 The Wormald Cos.                      2,640.00%          137
     5283 Corporate Dr., Suite 300,                       MU, LUX, AA
       Frederick, MD 21703
     www.wormald.com

     DRY SPELL: The Wormald family is no stranger to no-growth
     ordinances. The family built in Montgomery County, Md., a suburb
     of Washington, for 20 years before a moratorium on sewer access
     forced a move to nearby Frederick, Md. There, The Wormald Cos.
     introduced Worman's Mill, a 1,500-unit TND community that
     propelled the builder's growth through 2002, when the company
     generated $28 million in revenue. Yet another moratorium five
     years ago--this time on water in Frederick--led to further
     diversification. The company now has about 12 active projects,
     including the rejuvenated Worman's Mill. "We're a lot smarter and
     more proactive now," says Ed Wormald, one of the company's three
     principals (along with his brothers Robert and Ken). "We made a
     strategic decision back in 2001. Instead of fighting [the water
     moratorium], we'd seek work elsewhere."

   3 Elite Comssuutities                   2,004.76%          442
     7661 E. Gray Rd., Scottsdale, AZ                     EL, MU, LUX
       85260
     www.elitecommunities.com

     TOUGHER TIMES: Lance Keller, president of Elite Communities, had a
     front-row seat to the emergence of the Phoenix market, first as an
     employee of KB Home's Phoenix division, and then, beginning in
     2003, as his own boss. His company's tremendous growth--a jump
     from 21 homes in 2003 to 442 last year--stems from a combination
     of excellent timing and a strong partnership with a developer who
     provides a sole source of lots. The exodus of investors has
     stalled the market this year, though, leaving a surplus of
     inventory. Keller expects to close about 500 homes this year, off
     his blistering pace but still showing strong growth. In the
     meantime, he says, Elite is built to withstand market dips by
     focusing solely on home building. The company doesn't include a
     mortgage operation, design center, or land development operations.
     "We're set up for low overhead," he says. "We're built to move."

   4 Hallmark Design Homes                 1,540.00%          82
     12946 Dairy Ashford Rd., Suite                         EL, MU
       320, Sugarland, TX 77478
     www.halimarkdesignhomes.com
   5 Brookside Homes                       2,900.00%          60
     P.O. Box 2696, Wilmington, NC                        EL, MU, AA
       28402
     www.brooksidelic.com
   6 MCZ Development Corp.                 1,240.00%         4,020
     1555 N. Sheffield Ave., Chicago,                    MU, LUX, SEC
       IL 60622
     www.mczdevelopment.com
   7 Monticello Homes                      3,166.67%          98
     9115 S.W. Oleson Rd., Suite 203,                     EL, MU, SEC
       Portland, OR 97223
     www.monticello-homes-ine.com
   8 Bonterra Builders                     883.33/            118
     5615 Potter Rd., Matthews, NC                      EL, MU, LUX, AA
       28104
     www.bonterrabuilders.com
   9 Compass Homes                           525.00%          25
     3473 Satellite Blvd., Suite 300,                       EL, MU
       Duluth, GA 30096
     www.compasshomesga.com
  10 Cornerstone Construction                540.00%          64
     3140 E. Nye Lane, Carson City, NV                    EL, MU, LUX
       89706
     www.cornerstoneconstructionlic.net
  11 Buena Vista Custom Homes                326.32%          243
     5665 S.W. Meadows Rd., Suite 150,                      MU, LUX
       Lake Oswego, OR 97035
     www.buenavistahomes.com
  12 Felson Homes                            265.00%          73
     4270 W. Price Blvd., North Port,                    MU, LUX, SEC
       FL 34287
     www.felsonhomes.com
  13 Cassidy Homes                           301.92%          209
     250 Ave. K, S.W., Suite 100,                             MU
       Winter Haven, FL 33880
     www.cassidyhomes.com

     Brothers Steven and Al Cassidy started their land development
     business in 1983 and evolved into home builders as a way to move
     excess lots. But a few years ago they started seeing market shifts
     that were making the Winter Haven/Lakeland area in Florida more
     desirable for home buyers, including job growth and limited land
     in the nearby Tampa and Orlando markets. The company's plan to
     capitalize on the growth hinged on securing enough lots to compete
     with arriving regional and national builders. Cassidy Homes
     partnered with Highland Holdings to develop communities that would
     first serve the two builders; excess lots would be sold. In four
     years, they've bought 7,000 acres of land--enough to serve their
     growth and more. "It's ironic," says president Steven Cassidy. "We
     did it as a defensive thing, and now we're the one-stop shop for
     builders looking for lots."

  13 NuWest Custom Homes                     233.33%          10
     720 S. Colorado Blvd., Suite 940                         LUX
       N., Denver, CO 80246
     www.nuwesthomes.com
  13 Pillar Homes                            192.00%          73
     1216 Bowman St., Clermont, FL                          MU, LUX
       34711
     www.pillarhomes.us
  16 Townsend Construction                   219.61%          163
     6741 Corsair Ave., Prescott, AZ                        AA, SEC
       86301
     www.townsendhomes.com
  17 Hamilton Horses                         100.00%          22
     6701 Alderbrook Dr., Denton, TX                        EL, LUX
       76210
  17 Lanier-Phillips Construction            150.00%          15
     119 Savannah Ave., Statesboro, GA                    EL, MU, LUX
       30458
     www.phillipsdesignerhomes.com
  19 Nino Development                         68.42%          32
     829 San Benito St., Suite 200,                       EL, MU, LUX
       Hollister, CA 95023
     www.ninohomes.com
  20 Winnick Homes                           135.71%          99
     32100 Telegraph Rd., Suite 105,                        EL, MU
       Bingham Farms, MI 48025
     www.winnickhomes.com
  21 America's First Home                    142.80%         1,129
     385 Douglas Ave., Suite 3350,                          EL, MU
       Altamonte Springs, FL 32714
     www.americasfirsthome.net

     MARKET PLAY: The success of America's First Home has moved in
     tandem with Florida's tremendous growth over the last few years.
     But the growth has also presented a challenge: How to remain
     affordable for targeted first-time buyers in a period of rapid
     price appreciation. COO Jack Rostetter admits that the company
     scaled up its product line, and its prices, to compete with other
     area builders. Now, with much of its market area experiencing a
     slowdown, the company has discounted to move inventory but is also
     retooling its offerings to bring prices back under $200,000.
     Rostetter says the company has enough room in its cost structure
     to price homes lower than its competitors can afford to do.

  22 The Dearborn-Buckingham Group            27.27%          14
     1775 Winnetka Rd., Suite 102,                          MU, LUX
       Northfield, IL 60093
     www.dbghomes.com
  22 PSG Construction                         27.27%          14
     803 S. Orlando Ave., Suite A,                         LUX, SEC
       Winter Park, FL 32789
     www.psgconstruction.com
  24 Park Sgsrare Homes                      102.16%         1,215
     5200 Vineland Rd., Suite 200,                          MU, SEC
       Orlando, FL 32811
     www.parksquarehomes.com
  25 Caviness & Cates Building and           103.73%          328
       Development Co.                                      EL, MU
     2818 Raeford Rd., Suite 300,
       Fayetteville, NC 28303
     www.cavinessandcates.com
  26 Altman Cos.                             384.27%         1,385
     1515 S. Federal Hwy., Suite 300,                    EL, MU, LUX,
       Boca Raton, FL 33432                                   SEC
     www.altmancos.com
  27 Pageantry Cos.                           89.71%          848
     1333 N. Buffalo Dr., Suite 220,                        EL, MU
       Las Vegas, NV 89128
     www.pageantryco.com
  28 SeaGate Homes                            74.74%          512
     185 Cypress Point Pkwy., Palm                        EL, MU, SEC
       Coast, FL 32164
     www.seagatehomes.com
  29 The Warmington Group                     44.68%         1,224
     3090 Pullman St., Costa Mesa, CA                     EL, MU, LUX
       92626
     www.warmingtonhomesca.com
  30 Mattangy D.L. Group                     186.04%         1,250
     7800 Belfort Pkwy., Suite 200,                         EL, MU
       Jacksonville, FL 32256
     www.mattamyhomesfla.com
  31 Brown Fondly Communities                 21.51%         1,011
     2164 E. Broadway Rd., Suite 300,                       EL, MU
       Tempe, AZ 85282
     www.homebfc.com
  32 Patrick Malkryy Communities             144.96%          316
     851 Cedar St., Carrollton, GA                          EL, MU
       30117
     www.pmcommunities.com
  33 Bauhaus Design Build                    150.00%          20
     3391 Main St., College Park, GA                        MU, LUX
       30337
     www.bauhausdesignbuild.com

     SECOND THOUGHTS: Many small builders talk of finding a niche to
     compete with larger competitors, but Bauhaus Design Build
     president Anthony Bondhus has turned theory into real success. He
     markets primarily to buyers who live on Atlanta's north side but
     who want second homes so that during the week they can be closer
     to their children's exclusive private schools on the south side.
     But these aren't standard second homes: Most are at least 3,500
     square feet, and all can be fully customized. Bondhus expects to
     build about 25 this year.

  33 Gaffney Homes                           181.25%          45
     944 Glenwood Station Lane, Suite                     EL, MU, LUX
       301, Charlottesville, VA 22906
     www.gaffneyhomes.com
  35 Sotherby Homes                           87.00%          374
     2400 Dallas Pkwy., Suite 580,                          MU, LUX
       Piano, TX 75093
     www.sotherby.com
  36 Ginsburg Development Cos.                29.58%          368
     100 Summit Lake Dr., Valhalla, NY                    MU, LUX, AA
       10595
     www.gdc-homes.com
  37 The Mango Cos.                           76.78%          571
     441 Western Lane, Irmo, SC 29063                     EL, MU, LUX
     www.mungo.com

     PUBLIC-PRIVATE PLAN: As larger builders began flocking to The
     Mungo Cos.' Charleston and Columbia, S.C., markets about five
     years ago, the builder had to make a choice: either shrink its
     size and concentrate on niche building and land development or
     grow with the goal of attaining a critical mass for purchasing
     power. It opted for the latter. Though the company is well below
     the 1,000 units annually CEO Steven Mungo thinks it needs to hit
     to leverage that purchasing power, its volume is aided by projects
     it completes for city development authorities. Mungo says that
     business will be important this year, as the company's traditional
     home building business has dropped off. "Even if we're flat on the
     free market, we'll be up 10 percent to 15 percent overall in even
     the worst-case scenario for 2006," he says.

  38 Premier Design Homes                     46.48%          583
     9950 Princess Palm Ave., Suite                           EL
       102, Tampa, FL 33619
     www.premierdesignhomes.net
  39  Capitol Homes                           68.07%          200
     475 Metroplex Dr., Suite 320,                          EL, MU
       Nashville, TN 37211
     www.capitolhomesoftn.com
  40 Robest Harris Homes                     137.43%          425
     12453 Hwy. 92, Suite 400,                          EL, MU, LUX, AA
       Woodstock, GA 30188
     www.robertharrishomes.com
  41 Centerline Homes                        131.81%          809
     825 Coral Ridge Dr., Coral                          EL, MU, LUX,
       Springs, FL 33071                                    AA, SEC
     www.centerlinehomes.com
  42 The Mitchell Co.                         62.21%         1,421
     41 W. I-65, Service Rd. N., P.O.                    EL, MU, LUX,
       Box 160306, Mobile, AL 36608                           SEC
     www.mitchelicompany.com
  43 Toll Brothers                            78.56%         8,769
     250 Gibraltar Rd., Horsham, PA                      MU, LUX, AA,
       19044                                                  SEC
     www.tollbrothers.com
  44 Smith Family Homes                       66.67%          215
     5110 Eisenhower Blvd., Suite 160,                   EL, MU, LUX,
       Tampa, FL 33634                                        SEC
     www.smithfamilyhomes.com
  45 Norris Homes                             86.46%          179
     2053 Faben Dr., Mercer Island, WA                        MU
       98040
     www.norrishomesinc.com
  46 Fieldstone Communiides                  109.02%         1,622
     14 Corporate Plaza, Newport Beach,                  EL, MU, LUX,
       CA 92660                                               SEC
     www.fieldstone-homes.com
  46 Holiday Buiiiders                        38.87%         3,819
     2293 W. Eau Gallie Blvd.,                            EL, MU, SEC
       Melbourne, FL 32935
     www.holidaybuilders.com
  48 Pinnacle Homes                           70.21%          240
     4809 Miller Rd., Columbus, GA                          EL, MU
       31909
  49 ICI Homes                                98.97%         1,934
     2379 Beville Rd., Daytona Beach,                    MU, LUX, AA,
       FL 32119                                               SEC
     www.icihomes.com
  50 David James Homes                        56.67%          47
     1415 Towne Square Blvd., Roanoke,                    EL, MU, SEC
       VA 24012
     www.davidjamescustomhomes.com
  51 Capital Pacific Holdings                 79.37%         1,817
     4100 MacArthur Blvd., Suite 150,                     EL, MU, LUX
       Newport Beach, CA 92660
     www.cph-inc.com
  52 The Knight Group                         84.55%          430
     9497 Thornton Blvd., Jonesboro, GA                     EL, MU
       30236
     www.knighthomes.com
  53 Levitt Corp.                             76.95%         1,789
     2100 W. Cypress Creek Rd., Fort                      EL, MU, SEC
       Lauderdale, FL 33309
     www.levittcorporation.com
  54 Whitehall Homes                          93.15%          141
     P.O. Box 2229, Duluth, GA 30096                        EL, MU
     www.whitehallhomesatlanta.com
  55 Woodland Homes of Huntsville             71.79%          134
     7545-A Hwy. 72 W., Madison, AL                         MU, AA
       35758
     www.woodiandhomes.com
  56 Southern Crafted Homes                   43.94%          95
     3840 Land O' Lakes Blvd., Land O'                      MU, LUX
       Lakes, FL 34639
     www.southerncraftedhomes.com
  57 Astoria Homes                            29.74%         1,012
     10655 Park Run Dr., Suite 200, Las                     EL, MU
       Vegas, NV 89144
     www.astoriahomes.com
  59 Sandcastle Homes                         85.71%          52
     1405 Durham Dr., Houston, TX 77007                     EL, MU
     www.sandcastlehouston.com
  59 Ivory Homes                              45.51%          956
     978 E. Woodoak Lane, Salt Lake                       EL, MU, LUX
       City, UT 84117
     www.ivoryhomes.com
  60 Gemcaaft Homes                           41.01%          918
     2205 Commerce Rd., Suite A, Forest                 EL, MU, AA, SEC
       Hill, MD 21050
     www.gemcrafthomes.com
  61 Hamlet Homes Corp.                        3.75%          304
     308 E. 4500 S., Suite 200, Murray,                   EL, MU, SEC
       UT 84107
     www.hamiethomes.com

     MARKET WATCH: Michael Brodsky describes himself as "cautiously
     optimistic" about this year's prospects for the Salt Lake City
     market, where Hamlet Homes is the sixth-largest builder. Last year
     was the first in his 12 years in the market that prices
     appreciated more than 4 percent or 5 percent. In fact, they jumped
     so much that Hamlet's revenue spiked almost 40 percent in 2005.
     Strong household formations in Salt Lake City are helping support
     the housing market, but Brodsky says, "I don't know how long Salt
     Lake can buck national trends. I'm expecting a correction at any
     moment." He says he's ready if the correction comes, armed with
     extensive market research, an experienced management team, and a
     willingness to move unsold inventory quickly, including through
     price reductions.

  62 Hovnanian Enterprises                    54.22%        17,783
     10 Hwy. 35, P.O. Box 500, Red                      EL, MU, LUX, AA
       Bank, NJ 07701
     www.khov.com
  63 Brass Briclk Homes                      100.00%          58
     12101 N. MacArthur Blvd., Suite                      EL, MU, LUX
       317, Oklahoma City, OK 73162
     www.brassbrick.com
  64 Tripp Tradesnark Homes                   48.99%          222
     24814 State Rd. 54, Lutz, FL 33559                  EL, MU, LUX,
     www.tripptrademarkhomes.com                            AA, SEC
  65 Sores-Regis Group                        38.69%          595
     18802 Bardeen Ave., Irvine, CA                       EL, MU, LUX
       92612
     www.sares-regis.com
  66 Manor Homes                              55.94%          223
     1226 Royal Dr., Conyers, GA 30094                      EL, MU
     www.manorhomes.com

     BE PREPARED: If Gary Lockman's business fell by 50 percent this
     year, he wouldn't have to lay off a single employee for at least
     six months. Lockman, president and CEO of Manor Homes, made that
     tenet a priority after budgeting errors in 1993 led to a short
     period when he was $125,000 short to pay his bills. "I never want
     to be in that position again," he says. "I try to have enough
     money set aside se that I can pay my overhead if I didn't sell one
     house for a year." That hasn't been a problem of late--the
     company's closings hit 223 in 2005 and will approach 330 this
     year--but Lockman intentionally keeps fewer employees on payroll
     than other companies his size might, just in case. "That's the
     biggest lesson," he says. "Be prepared for the unexpected."

  67 67 Hacienda Sunders                      29.13%          860
     4250 N. Drinkwater Blvd., Suite                        EL, MU
       360, Scottsdale, AZ 85251
     www.haciendabuilders.com
  68 Genesis Designer Homes                   43.83%          233
     41 Park of Commerce Way, Bldg. 2,                    EL, MU, AA
       Savannah, GA 31405
     www.genesisdesignerhomes.com
  69 Riclsardson Homes                        85.29%          63
     2618 E. Hwy. 37, Tuttle, OK 73089                    EL, MU, LUX
     www.richardsonhomesok.com
  70 Providence Homes                         33.17%          273
     4686 Sunbeam Rd., Suite 102,                        EL, MU, LUX,
       Jacksonville, FL 32257                                 SEC
     www.myprovidencehome.com
  71 Equity Homes                             13.11%          207
     4035 Ridge Top Rd., Suite 150,                      MU, LUX, SEC
       Fairfax, VA 22030
     www.equityhomes.com
  72 Dan Ryan Builders                        21.90%          924
     60 Thomas Johnson Dr., Frederick,                   EL, MU, LUX,
       MD 21702                                               AA
     www.danryanbuilders.com
  73 Ryan Buiilding Group                     52.23%          889
     945 N. Plum Grove Rd., Suite G,                          MU
       Schaumburg, IL 60173
     www.ryanbldgrp.com
  74 Eliiott Building Group                   72.38%          181
     3000 Cabot Blvd. W., Suite 200,                      MU, LUX, AA
       Langhorne, PA 19047
     www.elliottbuildinggroup.com

     MIGRATING SOUTH: Growth is becoming a more difficult proposition
     in the greater Philadelphia market, with an approvals process that
     Elliott Building Group president Brad Elliott calls "a nightmare."
     Approvals that a decade ago took about two years now take four,
     leading the company to look south to Florida, and possibly even
     west to Salt Lake City, for new growth opportunities. Elliott's
     aiming at reaching 500 closings by 2008, a goal that he says will
     require expansion to new markets but won't be deterred by a
     housing slowdown. He estimates that each community might sell 5
     percent less this year, but the company will build in 10
     communities, up from seven a year ago. "There's plenty of room to
     keep growing," he says.

  74 Essex Homes SE                           46.85%          210
     120 Cromer Rd., Lexington, SC                            MU
       29073
     www.essexhomesse.net
  74 Town & Country Home Builders             31.67%          79
     1922 S.W. Biltmore St., Port St.                       MU, SEC
       Lucie, FL 34984
     www.pslhomebuilder.com
  77 Arbor Custom Homes                       75.05%          842
     1550 S.W. Jay St., Beaverton, OR                       EL, MU
       97006
     www.arborhomes.com
  78 D.H. Horton                              36.43%        51,383
     301 Commerce St., Suite 500, Fort                   EL, MU, LUX,
       Worth, TX 76102                                      AA, SEC
     www.drhorton.com
  79 Barratt American                        -16.72%          498
     5950 Priestly Dr., Carlsbad, CA                      EL, MU, LUX
       92008
     www.barrattamerican.com
  80 Bryant Building Co.                      43.75%          23
     P.O. Box 700876, St. Cloud, FL                           MU
       34770
     www.bryantbuildingcompany.com
  80 Snowden Builders                        100.00%          20
     2900 Wilson Ave., S.W., Suite 112,                     EL, MU
       Grandville, MI 49418
     www.snowdenbuilders.com
  82 Kara Homes                               30.53%          590
     197 Rte. 18, Suite 235S, East                       MU, LUX, AA,
       Brunswick, NJ 08816                                    SEC
     www.karahomes.com
  83 Neunnann Homes                           44.57%         1,943
     4355 Weaver Pkwy., Warrenville, IL                   EL, MU, AA
       60555
     www.neumannhomes.com
  84 Liberty Homes                            72.09%          74
     100 N. Clayview Dr., Liberty, MO                         MU
       64068
     www.mylibertyhome.com
  85 Eastwood Homes                           30.51%          877
     2857 Westport Rd., Charlotte, NC                       EL, MU
       28208
     www.eastwoodhomes.com
  86 Whitestone Custom Homes                  12.90%          70
     1017 N. Central Pkwy., Suite 139,                      MU, LUX
       San Antonio, TX 78232
     www.whitestonehomes.com
  87 DeLsaca Enterprises                      13.79%          586
     107 Floral Vale Rd., Yardley, PA                    EL, MU, LUX,
       19067                                                AA, SEC
     www.delucahomes.com

     MORE MATURE: Alfonso DeLuca started building single-family homes
     in the Philadelphia area in 1963. As his three sons grew older,
     they joined their father on job-sites, learning the trades as
     teens before working full time for the company. Over time, the
     firm added product lines, including active adult communities,
     townhomes, and luxury condos, a panelization plant, and a new
     division in Orlando, Fla. More recently, DeLuca has concentrated
     on reducing cycle times, which are down about 10 percent, and
     implementing an electronic system to improve communication with
     vendors and subcontractors. Those steps should help the company
     meet its goal of building 618 homes this year and 870 in 2007,
     figures that have been revised downward to account for the slower
     sales it has seen in both Philadelphia and Orlando.

  88 Arthur Itutenberg Homes                   6.13%          606
     13922 58th St. N., Clearwater, FL                   MU, LUX, AA,
       33760                                                  SEC
     www.arhomes.com
  89 David Weekley Homes                      29.95%         4,612
     1111 N. Post Oak Rd., Houston, TX                      EL, MU
       77055
     www.dwhomes.com
  90 Manage Homes                             48.04%          151
     10713 Winterset Dr., Orland Park,                        EL
       IL 60467
     www.zausahomes.com
  91 Stillbrooke Homes                        32.58%          293
     8801 Jefferson St., N.E., Bldg. I,                  EL, MU, LUX,
       Albuquerque, NM 87113                                  SEC
     www.stilibrooke.com
  92 Keystone Homes                            1.88%          271
     924 Stevens Creek Rd., Augusta, GA                     EL, MU
       30907
     www.keystonehomesinc.com
  93 Legend Home Corp.                        28.28%         1,084
     10410 Windermere Lakes Blvd.,                          EL, MU
       Houston, TX 77065
     www.legendhomescorp.com
  94 Elite Homes                              26.79%          71
     P.O. Box 43607, Louisville, KY                         MU, LUX
       40253
     www.elitebuilthomes.com
  95 Shelby Homes                             18.54%          243
     6363 N.W. 6th Way, Suite 250, Fort                       LUX
       Lauderdale, FL 33309
     www.shelby-homes.com
  96 Contemporary Garden Homes                47.14%          103
     10400 Main St., Houston, TX 77025                      MU, AA

     FILLING A NEED: Bill Gray, president of Contemporary Garden Homes,
     says that nearly every project he works on can be considered
     infill or redevelopment. Though infill projects often receive
     preferred treatment, the approvals process has become increasingly
     cumbersome in the Houston market, and Gray is turning to higher-
     density projects to maximize his land profits. The newer products
     have price points beginning at $155,000, compared with $200,000
     for previous townhome products, but Gray isn't worried about the
     decline in revenue per unit. His margins have proved just as
     strong on the condo projects he's completed so far, and he's pro-
     jecting at least a 10 percent increase in gross revenue this year.

  96 Ideal Homes                              15.08%          435
     1320 N. Porter Ave., Norman, OK                        EL, MU
       73071
     www.ideal-homes.com
  98 Forino Co.                                1.75%          349
     555 Mountain Home Rd., Sinking                         EL, MU
       Spring, PA 19608
     www.forino.com
  99 Suarez Housing Corp.                    -19.96%          357
     9950 Princess Palm Ave., Suite                         EL, MU
       212, Tampa, FL 33619
     www.suarezhousing.com
 100 Fischer Homes                            14.09%         1,150
     2670 Chancellor Dr., Suite 300,                      EL, MU, LUX
       Crestview Hills, KY 41017
     www.fischerhomes.com

                                            Year      No. of
Rank Company/Address/Web Site              Formed    Employees

   1 Presidio Homes                         2003          13
     3755 Harrison Rd., Suite 300,
       Loganville, GA 30052
     www.presidiohomes.com
   2 The Wormald Cos.                       1964          65
     5283 Corporate Dr., Suite 300,
       Frederick, MD 21703
     www.wormald.com

     DRY SPELL: The Wormald family is no stranger to no-growth
     ordinances. The family built in Montgomery County, Md., a suburb
     of Washington, for 20 years before a moratorium on sewer access
     forced a move to nearby Frederick, Md. There, The Wormald Cos.
     introduced Worman's Mill, a 1,500-unit TND community that
     propelled the builder's growth through 2002, when the company
     generated $28 million in revenue. Yet another moratorium five
     years ago--this time on water in Frederick--led to further
     diversification. The company now has about 12 active projects,
     including the rejuvenated Worman's Mill. "We're a lot smarter and
     more proactive now," says Ed Wormald, one of the company's three
     principals (along with his brothers Robert and Ken). "We made a
     strategic decision back in 2001. Instead of fighting [the water
     moratorium], we'd seek work elsewhere."

   3 Elite Comssuutities                    2003          68
     7661 E. Gray Rd., Scottsdale, AZ
       85260
     www.elitecommunities.com

     TOUGHER TIMES: Lance Keller, president of Elite Communities, had a
     front-row seat to the emergence of the Phoenix market, first as an
     employee of KB Home's Phoenix division, and then, beginning in
     2003, as his own boss. His company's tremendous growth--a jump
     from 21 homes in 2003 to 442 last year--stems from a combination
     of excellent timing and a strong partnership with a developer who
     provides a sole source of lots. The exodus of investors has
     stalled the market this year, though, leaving a surplus of
     inventory. Keller expects to close about 500 homes this year, off
     his blistering pace but still showing strong growth. In the
     meantime, he says, Elite is built to withstand market dips by
     focusing solely on home building. The company doesn't include a
     mortgage operation, design center, or land development operations.
     "We're set up for low overhead," he says. "We're built to move."

   4 Hallmark Design Homes                  2003          25
     12946 Dairy Ashford Rd., Suite
       320, Sugarland, TX 77478
     www.halimarkdesignhomes.com
   5 Brookside Homes                        2002          11
     P.O. Box 2696, Wilmington, NC
       28402
     www.brooksidelic.com
   6 MCZ Development Corp.                  1985         350
     1555 N. Sheffield Ave., Chicago,
       IL 60622
     www.mczdevelopment.com
   7 Monticello Homes                       2003          13
     9115 S.W. Oleson Rd., Suite 203,
       Portland, OR 97223
     www.monticello-homes-ine.com
   8 Bonterra Builders                      2002          22
     5615 Potter Rd., Matthews, NC
       28104
     www.bonterrabuilders.com
   9 Compass Homes                          2003           7
     3473 Satellite Blvd., Suite 300,
       Duluth, GA 30096
     www.compasshomesga.com
  10 Cornerstone Construction               2003          30
     3140 E. Nye Lane, Carson City, NV
       89706
     www.cornerstoneconstructionlic.net
  11 Buena Vista Custom Homes               2002          44
     5665 S.W. Meadows Rd., Suite 150,
       Lake Oswego, OR 97035
     www.buenavistahomes.com
  12 Felson Homes                           1992          12
     4270 W. Price Blvd., North Port,
       FL 34287
     www.felsonhomes.com
  13 Cassidy Homes                          1980          63
     250 Ave. K, S.W., Suite 100,
       Winter Haven, FL 33880
     www.cassidyhomes.com

     Brothers Steven and Al Cassidy started their land development
     business in 1983 and evolved into home builders as a way to move
     excess lots. But a few years ago they started seeing market shifts
     that were making the Winter Haven/Lakeland area in Florida more
     desirable for home buyers, including job growth and limited land
     in the nearby Tampa and Orlando markets. The company's plan to
     capitalize on the growth hinged on securing enough lots to compete
     with arriving regional and national builders. Cassidy Homes
     partnered with Highland Holdings to develop communities that would
     first serve the two builders; excess lots would be sold. In four
     years, they've bought 7,000 acres of land--enough to serve their
     growth and more. "It's ironic," says president Steven Cassidy. "We
     did it as a defensive thing, and now we're the one-stop shop for
     builders looking for lots."

  13 NuWest Custom Homes                    2001           7
     720 S. Colorado Blvd., Suite 940
       N., Denver, CO 80246
     www.nuwesthomes.com
  13 Pillar Homes                           2001           4
     1216 Bowman St., Clermont, FL
       34711
     www.pillarhomes.us
  16 Townsend Construction                  1997         109
     6741 Corsair Ave., Prescott, AZ
       86301
     www.townsendhomes.com
  17 Hamilton Horses                        2003           6
     6701 Alderbrook Dr., Denton, TX
       76210
  17 Lanier-Phillips Construction           2002           5
     119 Savannah Ave., Statesboro, GA
       30458
     www.phillipsdesignerhomes.com
  19 Nino Development                       1996          13
     829 San Benito St., Suite 200,
       Hollister, CA 95023
     www.ninohomes.com
  20 Winnick Homes                          2000          16
     32100 Telegraph Rd., Suite 105,
       Bingham Farms, MI 48025
     www.winnickhomes.com
  21 America's First Home                   2001         180
     385 Douglas Ave., Suite 3350,
       Altamonte Springs, FL 32714
     www.americasfirsthome.net

     MARKET PLAY: The success of America's First Home has moved in
     tandem with Florida's tremendous growth over the last few years.
     But the growth has also presented a challenge: How to remain
     affordable for targeted first-time buyers in a period of rapid
     price appreciation. COO Jack Rostetter admits that the company
     scaled up its product line, and its prices, to compete with other
     area builders. Now, with much of its market area experiencing a
     slowdown, the company has discounted to move inventory but is also
     retooling its offerings to bring prices back under $200,000.
     Rostetter says the company has enough room in its cost structure
     to price homes lower than its competitors can afford to do.

  22 The Dearborn-Buckingham Group          1997          11
     1775 Winnetka Rd., Suite 102,
       Northfield, IL 60093
     www.dbghomes.com
  22 PSG Construction                       1987          26
     803 S. Orlando Ave., Suite A,
       Winter Park, FL 32789
     www.psgconstruction.com
  24 Park Sgsrare Homes                     1984         160
     5200 Vineland Rd., Suite 200,
       Orlando, FL 32811
     www.parksquarehomes.com
  25 Caviness & Cates Building and          1994          24
       Development Co.
     2818 Raeford Rd., Suite 300,
       Fayetteville, NC 28303
     www.cavinessandcates.com
  26 Altman Cos.                            1968         394
     1515 S. Federal Hwy., Suite 300,
       Boca Raton, FL 33432
     www.altmancos.com
  27 Pageantry Cos.                         1994         108
     1333 N. Buffalo Dr., Suite 220,
       Las Vegas, NV 89128
     www.pageantryco.com
  28 SeaGate Homes                          1994          88
     185 Cypress Point Pkwy., Palm
       Coast, FL 32164
     www.seagatehomes.com
  29 The Warmington Group                   1926         572
     3090 Pullman St., Costa Mesa, CA
       92626
     www.warmingtonhomesca.com
  30 Mattangy D.L. Group                    2003         209
     7800 Belfort Pkwy., Suite 200,
       Jacksonville, FL 32256
     www.mattamyhomesfla.com
  31 Brown Fondly Communities               1975         155
     2164 E. Broadway Rd., Suite 300,
       Tempe, AZ 85282
     www.homebfc.com
  32 Patrick Malkryy Communities            1994          64
     851 Cedar St., Carrollton, GA
       30117
     www.pmcommunities.com
  33 Bauhaus Design Build                   2002           5
     3391 Main St., College Park, GA
       30337
     www.bauhausdesignbuild.com

     SECOND THOUGHTS: Many small builders talk of finding a niche to
     compete with larger competitors, but Bauhaus Design Build
     president Anthony Bondhus has turned theory into real success. He
     markets primarily to buyers who live on Atlanta's north side but
     who want second homes so that during the week they can be closer
     to their children's exclusive private schools on the south side.
     But these aren't standard second homes: Most are at least 3,500
     square feet, and all can be fully customized. Bondhus expects to
     build about 25 this year.

  33 Gaffney Homes                          1987          35
     944 Glenwood Station Lane, Suite
       301, Charlottesville, VA 22906
     www.gaffneyhomes.com
  35 Sotherby Homes                         1995         140
     2400 Dallas Pkwy., Suite 580,
       Piano, TX 75093
     www.sotherby.com
  36 Ginsburg Development Cos.              1963         292
     100 Summit Lake Dr., Valhalla, NY
       10595
     www.gdc-homes.com
  37 The Mango Cos.                         1954         150
     441 Western Lane, Irmo, SC 29063
     www.mungo.com

     PUBLIC-PRIVATE PLAN: As larger builders began flocking to The
     Mungo Cos.' Charleston and Columbia, S.C., markets about five
     years ago, the builder had to make a choice: either shrink its
     size and concentrate on niche building and land development or
     grow with the goal of attaining a critical mass for purchasing
     power. It opted for the latter. Though the company is well below
     the 1,000 units annually CEO Steven Mungo thinks it needs to hit
     to leverage that purchasing power, its volume is aided by projects
     it completes for city development authorities. Mungo says that
     business will be important this year, as the company's traditional
     home building business has dropped off. "Even if we're flat on the
     free market, we'll be up 10 percent to 15 percent overall in even
     the worst-case scenario for 2006," he says.

  38 Premier Design Homes                   1999          23
     9950 Princess Palm Ave., Suite
       102, Tampa, FL 33619
     www.premierdesignhomes.net
  39  Capitol Homes                         2001          40
     475 Metroplex Dr., Suite 320,
       Nashville, TN 37211
     www.capitolhomesoftn.com
  40 Robest Harris Homes                    1994         120
     12453 Hwy. 92, Suite 400,
       Woodstock, GA 30188
     www.robertharrishomes.com
  41 Centerline Homes                       1994         210
     825 Coral Ridge Dr., Coral
       Springs, FL 33071
     www.centerlinehomes.com
  42 The Mitchell Co.                       1945         240
     41 W. I-65, Service Rd. N., P.O.
       Box 160306, Mobile, AL 36608
     www.mitchelicompany.com
  43 Toll Brothers                          1986       5,581
     250 Gibraltar Rd., Horsham, PA
       19044
     www.tollbrothers.com
  44 Smith Family Homes                     1998          82
     5110 Eisenhower Blvd., Suite 160,
       Tampa, FL 33634
     www.smithfamilyhomes.com
  45 Norris Homes                           1991          70
     2053 Faben Dr., Mercer Island, WA
       98040
     www.norrishomesinc.com
  46 Fieldstone Communiides                 1981         424
     14 Corporate Plaza, Newport Beach,
       CA 92660
     www.fieldstone-homes.com
  46 Holiday Buiiiders                      1983         400
     2293 W. Eau Gallie Blvd.,
       Melbourne, FL 32935
     www.holidaybuilders.com
  48 Pinnacle Homes                         1997          36
     4809 Miller Rd., Columbus, GA
       31909
  49 ICI Homes                              1980         350
     2379 Beville Rd., Daytona Beach,
       FL 32119
     www.icihomes.com
  50 David James Homes                      2002          10
     1415 Towne Square Blvd., Roanoke,
       VA 24012
     www.davidjamescustomhomes.com
  51 Capital Pacific Holdings               1992         400
     4100 MacArthur Blvd., Suite 150,
       Newport Beach, CA 92660
     www.cph-inc.com
  52 The Knight Group                       1978          80
     9497 Thornton Blvd., Jonesboro, GA
       30236
     www.knighthomes.com
  53 Levitt Corp.                           1929         679
     2100 W. Cypress Creek Rd., Fort
       Lauderdale, FL 33309
     www.levittcorporation.com
  54 Whitehall Homes                        1994          18
     P.O. Box 2229, Duluth, GA 30096
     www.whitehallhomesatlanta.com
  55 Woodland Homes of Huntsville           1995          30
     7545-A Hwy. 72 W., Madison, AL
       35758
     www.woodiandhomes.com
  56 Southern Crafted Homes                 1990          45
     3840 Land O' Lakes Blvd., Land O'
       Lakes, FL 34639
     www.southerncraftedhomes.com
  57 Astoria Homes                          1995         162
     10655 Park Run Dr., Suite 200, Las
       Vegas, NV 89144
     www.astoriahomes.com
  59 Sandcastle Homes                       1995           8
     1405 Durham Dr., Houston, TX 77007
     www.sandcastlehouston.com
  59 Ivory Homes                            1986         200
     978 E. Woodoak Lane, Salt Lake
       City, UT 84117
     www.ivoryhomes.com
  60 Gemcaaft Homes                         1993         350
     2205 Commerce Rd., Suite A, Forest
       Hill, MD 21050
     www.gemcrafthomes.com
  61 Hamlet Homes Corp.                     1995          70
     308 E. 4500 S., Suite 200, Murray,
       UT 84107
     www.hamiethomes.com

     MARKET WATCH: Michael Brodsky describes himself as "cautiously
     optimistic" about this year's prospects for the Salt Lake City
     market, where Hamlet Homes is the sixth-largest builder. Last year
     was the first in his 12 years in the market that prices
     appreciated more than 4 percent or 5 percent. In fact, they jumped
     so much that Hamlet's revenue spiked almost 40 percent in 2005.
     Strong household formations in Salt Lake City are helping support
     the housing market, but Brodsky says, "I don't know how long Salt
     Lake can buck national trends. I'm expecting a correction at any
     moment." He says he's ready if the correction comes, armed with
     extensive market research, an experienced management team, and a
     willingness to move unsold inventory quickly, including through
     price reductions.

  62 Hovnanian Enterprises                  1967       6,084
     10 Hwy. 35, P.O. Box 500, Red
       Bank, NJ 07701
     www.khov.com
  63 Brass Briclk Homes                     1997          17
     12101 N. MacArthur Blvd., Suite
       317, Oklahoma City, OK 73162
     www.brassbrick.com
  64 Tripp Tradesnark Homes                 2000          24
     24814 State Rd. 54, Lutz, FL 33559
     www.tripptrademarkhomes.com
  65 Sores-Regis Group                      1993         550
     18802 Bardeen Ave., Irvine, CA
       92612
     www.sares-regis.com
  66 Manor Homes                            1991          23
     1226 Royal Dr., Conyers, GA 30094
     www.manorhomes.com

     BE PREPARED: If Gary Lockman's business fell by 50 percent this
     year, he wouldn't have to lay off a single employee for at least
     six months. Lockman, president and CEO of Manor Homes, made that
     tenet a priority after budgeting errors in 1993 led to a short
     period when he was $125,000 short to pay his bills. "I never want
     to be in that position again," he says. "I try to have enough
     money set aside se that I can pay my overhead if I didn't sell one
     house for a year." That hasn't been a problem of late--the
     company's closings hit 223 in 2005 and will approach 330 this
     year--but Lockman intentionally keeps fewer employees on payroll
     than other companies his size might, just in case. "That's the
     biggest lesson," he says. "Be prepared for the unexpected."

  67 67 Hacienda Sunders                    1991         110
     4250 N. Drinkwater Blvd., Suite
       360, Scottsdale, AZ 85251
     www.haciendabuilders.com
  68 Genesis Designer Homes                 1999          52
     41 Park of Commerce Way, Bldg. 2,
       Savannah, GA 31405
     www.genesisdesignerhomes.com
  69 Riclsardson Homes                      1983          15
     2618 E. Hwy. 37, Tuttle, OK 73089
     www.richardsonhomesok.com
  70 Providence Homes                       1992          45
     4686 Sunbeam Rd., Suite 102,
       Jacksonville, FL 32257
     www.myprovidencehome.com
  71 Equity Homes                           1991         116
     4035 Ridge Top Rd., Suite 150,
       Fairfax, VA 22030
     www.equityhomes.com
  72 Dan Ryan Builders                      1990         216
     60 Thomas Johnson Dr., Frederick,
       MD 21702
     www.danryanbuilders.com
  73 Ryan Buiilding Group                   1992         196
     945 N. Plum Grove Rd., Suite G,
       Schaumburg, IL 60173
     www.ryanbldgrp.com
  74 Eliiott Building Group                 1994          60
     3000 Cabot Blvd. W., Suite 200,
       Langhorne, PA 19047
     www.elliottbuildinggroup.com

     MIGRATING SOUTH: Growth is becoming a more difficult proposition
     in the greater Philadelphia market, with an approvals process that
     Elliott Building Group president Brad Elliott calls "a nightmare."
     Approvals that a decade ago took about two years now take four,
     leading the company to look south to Florida, and possibly even
     west to Salt Lake City, for new growth opportunities. Elliott's
     aiming at reaching 500 closings by 2008, a goal that he says will
     require expansion to new markets but won't be deterred by a
     housing slowdown. He estimates that each community might sell 5
     percent less this year, but the company will build in 10
     communities, up from seven a year ago. "There's plenty of room to
     keep growing," he says.

  74 Essex Homes SE                         1993          50
     120 Cromer Rd., Lexington, SC
       29073
     www.essexhomesse.net
  74 Town & Country Home Builders           1998          65
     1922 S.W. Biltmore St., Port St.
       Lucie, FL 34984
     www.pslhomebuilder.com
  77 Arbor Custom Homes                     1988         141
     1550 S.W. Jay St., Beaverton, OR
       97006
     www.arborhomes.com
  78 D.H. Horton                            1978       9,000
     301 Commerce St., Suite 500, Fort
       Worth, TX 76102
     www.drhorton.com
  79 Barratt American                       1980         149
     5950 Priestly Dr., Carlsbad, CA
       92008
     www.barrattamerican.com
  80 Bryant Building Co.                    1987           4
     P.O. Box 700876, St. Cloud, FL
       34770
     www.bryantbuildingcompany.com
  80 Snowden Builders                       1998           4
     2900 Wilson Ave., S.W., Suite 112,
       Grandville, MI 49418
     www.snowdenbuilders.com
  82 Kara Homes                             1999         250
     197 Rte. 18, Suite 235S, East
       Brunswick, NJ 08816
     www.karahomes.com
  83 Neunnann Homes                         1985         438
     4355 Weaver Pkwy., Warrenville, IL
       60555
     www.neumannhomes.com
  84 Liberty Homes                          2000           4
     100 N. Clayview Dr., Liberty, MO
       64068
     www.mylibertyhome.com
  85 Eastwood Homes                         1978         170
     2857 Westport Rd., Charlotte, NC
       28208
     www.eastwoodhomes.com
  86 Whitestone Custom Homes                1998          24
     1017 N. Central Pkwy., Suite 139,
       San Antonio, TX 78232
     www.whitestonehomes.com
  87 DeLsaca Enterprises                    1963         182
     107 Floral Vale Rd., Yardley, PA
       19067
     www.delucahomes.com

     MORE MATURE: Alfonso DeLuca started building single-family homes
     in the Philadelphia area in 1963. As his three sons grew older,
     they joined their father on job-sites, learning the trades as
     teens before working full time for the company. Over time, the
     firm added product lines, including active adult communities,
     townhomes, and luxury condos, a panelization plant, and a new
     division in Orlando, Fla. More recently, DeLuca has concentrated
     on reducing cycle times, which are down about 10 percent, and
     implementing an electronic system to improve communication with
     vendors and subcontractors. Those steps should help the company
     meet its goal of building 618 homes this year and 870 in 2007,
     figures that have been revised downward to account for the slower
     sales it has seen in both Philadelphia and Orlando.

  88 Arthur Itutenberg Homes                1975         147
     13922 58th St. N., Clearwater, FL
       33760
     www.arhomes.com
  89 David Weekley Homes                    1976       1,482
     1111 N. Post Oak Rd., Houston, TX
       77055
     www.dwhomes.com
  90 Manage Homes                           1996          27
     10713 Winterset Dr., Orland Park,
       IL 60467
     www.zausahomes.com
  91 Stillbrooke Homes                      1997          47
     8801 Jefferson St., N.E., Bldg. I,
       Albuquerque, NM 87113
     www.stilibrooke.com
  92 Keystone Homes                         1995          46
     924 Stevens Creek Rd., Augusta, GA
       30907
     www.keystonehomesinc.com
  93 Legend Home Corp.                      1991         130
     10410 Windermere Lakes Blvd.,
       Houston, TX 77065
     www.legendhomescorp.com
  94 Elite Homes                            1976          32
     P.O. Box 43607, Louisville, KY
       40253
     www.elitebuilthomes.com
  95 Shelby Homes                           1989          63
     6363 N.W. 6th Way, Suite 250, Fort
       Lauderdale, FL 33309
     www.shelby-homes.com
  96 Contemporary Garden Homes              1992           7
     10400 Main St., Houston, TX 77025

     FILLING A NEED: Bill Gray, president of Contemporary Garden Homes,
     says that nearly every project he works on can be considered
     infill or redevelopment. Though infill projects often receive
     preferred treatment, the approvals process has become increasingly
     cumbersome in the Houston market, and Gray is turning to higher-
     density projects to maximize his land profits. The newer products
     have price points beginning at $155,000, compared with $200,000
     for previous townhome products, but Gray isn't worried about the
     decline in revenue per unit. His margins have proved just as
     strong on the condo projects he's completed so far, and he's pro-
     jecting at least a 10 percent increase in gross revenue this year.

  96 Ideal Homes                            1989          95
     1320 N. Porter Ave., Norman, OK
       73071
     www.ideal-homes.com
  98 Forino Co.                             1975         125
     555 Mountain Home Rd., Sinking
       Spring, PA 19608
     www.forino.com
  99 Suarez Housing Corp.                   1988         117
     9950 Princess Palm Ave., Suite
       212, Tampa, FL 33619
     www.suarezhousing.com
 100 Fischer Homes                          1981         415
     2670 Chancellor Dr., Suite 300,
       Crestview Hills, KY 41017
     www.fischerhomes.com

* Revenue change = the compounded annual growth rate over three years

** In millions

Key:

EL = Entry-level

MU = Move-up

LUX = Luxury/Custom

AA = Active adult

SEC = Second home
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Author:Mariani, Michele
Publication:Builder
Article Type:Industry overview
Geographic Code:1USA
Date:Sep 1, 2006
Words:12377
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