Spotlight PulteGroup: Building Homes to Embrace ChangeMarch 18, 2022
The third largest homebuilder in the US, PulteGroup builds and sells homes in 40 cities across the country. As such, it has benefitted from new and emerging pandemic trends, including an increased preference for single-family living and ongoing remote work. This Atlanta, Georgia-based Knowledge Leader operates under the brands Pulte, Centex, Del Webb (the leading builder of active adult communities for 55+ in the US), DiVosta, American West and John Wieland Homes.
The firm was founded in 1950 when 18-year-old Bill Pulte pulled together a group of high school buddies, and they built a five-room bungalow outside Detroit, Michigan. Pulte sold that first home for $10,000. By the 1990s, the firm was building whole subdivisions, with homes priced from $100,000 to over $1 million.
Where PulteGroup differentiates itself is through its focus and discipline. For the former, a focus on delivering superior home quality and buying experience, and for the latter, sticking to its priorities to invest in the business. These principles are based on research indicating that high return on invested capital (ROIC) and return on equity (ROE) are key to long-term results in the homebuilding industry, and it is these disciplines to which PulteGroup credits its leadership in the industry.
PulteGroup is also at work digitizing the homebuying process from start to finish. Last year for example, the firm launched an online interior design app through which homebuyers scan QR codes from models to easily and virtually design and place orders to furnish their own homes. This builds on other new technologies PulteGroup has embraced to meet consumer demands for health and wellness, such as water and air filtration, antimicrobial countertops and touchless faucets. The firm also has brought innovation to home financing via a partnership with Paymentus, whereby buyers may secure financing and approval quickly, from any device. In 2016, PulteGroup completed a zero net energy home prototype in Northern California, a model from which it aims to develop best practices toward a future of energy efficient homes.
As of 12/31/21, PulteGroup was held in the Knowledge Leaders Strategy and Paymentus was not.