Owning a home is a central part of the American dream - or at least when home prices hadn't skyrocketed and priced most people out. However, what most people find out after buying a home is that home ownership is a life-long process that requires constant vigilance and repairs to ensure that the property remains in a living condition. This of course leads to the creation of an entire industry that is made of up both public and private firms related to home repair products and services.
In terms of demand for houses and other properties, the sector has faced several shocks over the past twelve months, due to the high costs of borrowing. These have resulted from the Federal Reserve's rapid interest rate hikes to combat inflation and the high rates have led to high costs of borrowing and put people off from buying home due to high mortgage rates. At the same time, it has also led to a difficult business environment for construction companies, as their working capital costs go up, they find it difficult to raise funds to invest in projects, and cash flow dries up due to a slowing market.
Starting off by analyzing the housing market by cold, hard stats, the real estate brokerage firm Zillow reports that the average U.S. home is worth $334,269 as of April 2023 - marking a 5% annual growth and broadly keeping up with the rate of inflation. This marks quite a stunning growth in just nine years, with data from Zillow showing that the average price was $173,938 in December 2014, marking a near doubling during the time frame. Additionally, the bulk of this price growth has come after the peak of the coronavirus pandemic, as the data shows that while the average home price stood at $245,472 in August 2020 - for a 'mere' ~$81,000 growth in six years, since then the prices have jumped by almost a hundred thousand dollars to sit at the current levels. Remember how we mentioned people being priced out of the home market above? Zillow adds that most of the sales in the market took place under the listed market price and that prices are expected to grow further by 1.9% over the next twelve months.
Research from Redfin shows that the home price growth is not even across different American cities. It outlines that the fastest growing home prices were in Savannah, Georgia where prices have grown by a whopping 21.2% in the past twelve months. Other steep price jumps were seen in Fayetteville, North Carolina, Tallahassee, Florida, and Myrtle Beach, South Carolina. Looking at the housing supply, the market continues to be tight as 1.4 million homes were available for sale in March 2023 for a 7.1% growth but the average months of supply was at two months low and remained flat annually. Additionally, the bulk of this growth is from used homes going up for sale, as Redfin outlines that 529,145 newly built homes were put up for sale in March 2023 which marked a 22.5% annual drop. Additionally, looking at the supply of homes for the past five years, the 1.4 million houses are still significantly lower than historic highs, as the market had peaked in July 2019 when almost 3.5 million homes were up for sale. Finally, most homes are being sold below their list price, indicating that the market simply isn't ready to pay for high prices. Compare this to May 2022 when almost 60% of the houses had sold above the list price.
Now that we've analyzed the housing industry, let's take a look at how the home improvement market is performing and is expected to perform. On this front, a research report from Blue Weave Consulting provides some details. It reveals that the global home improvement market was worth $337 billion in 2021 and the market will grow at a compounded annual growth rate (CAGR) of 6.40% to sit at $515 billion by the end of 2028. The research firm shares that Europe is the largest market for home improvement as its citizens have higher purchasing powers lending them higher disposable incomes. Another report from The Business Research Company analyzes the home improvement services market to outline that this particular market was worth $324 billion in 2022 and will grow through a CAGR that is faster than 5% to be worth $344 billion by the end of 2023. It adds that from then until 2027, the market will maintain this growth rate and be worth $424 billion.
Looking at the current state of the real estate improvement market, executives of FirstService Corporation (NASDAQ:FSV) shared some insights during the firm's Q4 2022 earnings call where they shared:
Suffice to say, we’re off to a strong start in restoration and we will provide more visibility at each quarter end. Moving that to our home improvement brands including California Closets, CertaPro Painters, Floor Coverings International and period of post home inspection. As a group, these brands were up about 10% against a strong Q4 from 2021 that was up 30% over the year prior. December weather impacted our ability to complete as much work as we expected, and our revenues reflected as much. We fell a bit short of our internal estimates. All that work now flows into January, and we will make it up. Looking forward, we expect continued growth in 2023, at this point, we estimate growth at a high single digit level against a very strong 2022.
With these details in mind, let's take a look at some of the biggest roofing companies in America. Out of these, some of the largest players are CentiMark Corporation, Tecta America, and Flynn Group of Companies.
To compile our list of the biggest roofing companies in the U.S., we first used Roofing Contractor Magazine's list of top roofing companies in America. We first ranked all the roofing companies based on revenue and picked the top ten for this list.
Top 10 Roofing Companies in the United States
10. Greenwood Industries, Inc.
Latest Twelve Month Revenue Estimate: $166 million
Greenwood Industries, Inc. is one of the largest roofing companies in America as it has offices in Massachusetts, Connecticut, New Hampshire, New York, and Rhode Island. The firm is headquartered in Worcester, Massachusetts. The company was set up in 1992 and it has more than 750 employees. The firm provides a variety of services, such as re-roofing through which it replaces the roofs of a variety of buildings such as manufacturing plants and hospitals, including those that have to run for 24 hours a day, seven days a week. Greenwood Industries, Inc. also provides roof restoration services in a short time period, and it provides a variety of roof systems such as metal roofs, solar roofs, green roofs, and commercial roofs. Along with Tecta America, CentiMark Corporation, and Flynn Group of Companies, it is one of the biggest roofing companies in the U.S.
9. CMR Construction & Roofing
Latest Twelve Month Revenue Estimate: $176.9 million
CMR Construction & Roofing is another large roofing company in the U.S. The firm claims to offer rapid response services through which it can mobilize resources as fast as within 24 hours. It has installed 133 million square feet of roof over two decades and in 32 states. CMR Construction & Roofing offers both residential and commercial services, and its commercial division offers several services such as asphalt roofs, metal roofs, tiling, and coating.
8. Feazel Roofing
Latest Twelve Month Revenue Estimate: $185 million
Feazel Roofing is another American roofing company and one that has been operating for 25 years. It has operations in Cincinnati, Cleveland, Columbus, Dayton, Indianapolis, and Raleigh. The firm offers roof repair, roof replacement, and roof installation. Additionally, Feazel Roofing's commercial roofing services include inspecting, repairing, and replacing roofs for multi family homes.
7. Mr. Roof/Able Roofing
Latest Twelve Month Revenue Estimate: $197 million
Mr. Roof/Able Roofing are two companies that are part of the Crane Renovation group. Out of these, Mr. Roof claims to be the biggest roofing contractor in America. The firm has been in business for six decades and offers replacement and repairs.
6. Corey Construction
Latest Twelve Month Revenue Estimate: $202 million
Corey Construction is a relatively young company that was set up in 1999. The firm has operations in Atlanta, Dallas, Fort Worth, Austin, Nashville, and San Antonio.
