From finished lot to signed mortgage, NVR offers homebuyers everything -- including the kitchen sink. The company builds single-family detached homes, townhomes, and condominiums, mainly for first-time and move-up buyers, primarily in the eastern US. NVR markets its homes as Ryan Homes, Fox Ridge Homes, Rymarc Homes, and NVHomes. Its largest markets, the Washington, DC; and Baltimore areas, account for nearly half of sales. NVR sells about 9,000 homes annually. Sizes range from 1,000 sq. ft. to 7,300 sq. ft., with the average price of a home at around $307,500. Subsidiary NVR Mortgage Finance offers mortgage and title services.
NVR's Ryan Homes, Fox Ridge Homes, and Rymarc Homes divisions primarily market to first-time buyers. Ryan Homes operates in some two-dozen metropolitan areas along the eastern seaboard and in Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia. Fox Ridge Homes is dedicated to first-time and move-up buyers in the Nashville market, and Rymarc Homes operates solely in Columbia, South Carolina. NVHomes caters to upscale buyers and builds primarily in the Baltimore, Philadelphia, and DC metro areas, as well as on Maryland's eastern shore.
It expanded its portfolio of home-building companies in late 2012 when it acquired Heartland Homes, the second largest homebuilder in Pittsburgh. As part of the purchase, NVR plans to continue to use the Heartland Homes name and pair the company with its complementery Ryan Homes.
NVR also has a building product division, which manufactures architectural building components at facilities in Maryland, Pennsylvania, New York, New Jersey, North Carolina, and Tennessee.
Like other homebuilders, NVR fell victim to the slumping housing market. Sales have dipped, but the company is faring better than some of its competitors, in part because of its conservative land acquisition strategy. To control capital risk, it typically does not develop land, but instead buys option contracts on finished building lots from developers; it purchases finished lots through joint developments, as well.
In 2010 NVR teamed up with Morgan Stanley to buy some 5,600 home sites in Virginian suburbs of Washington, DC. The move was atypical for the company, as it will develop the land, but NVR is counting on the strength of the housing market in the area. The company also holds the largest market share in the DC area, which provides it with some pull with developers and subcontractors.
The company has also remained profitable by lowering its prices and focusing on areas where it has a high market share. NVR has found that it is more efficient to expand within its existing markets, which helps maintain lower costs. Additionally, the company has steered away from townhomes while building more detached houses, which has resulted in an increase in its average home selling price.
Demand for new homes continued to be low in 2010 as the recession continued to bring high unemployment and low consumer confidence. However, NVR's business strategy helped the company remain profitable and it even managed to retire all of its outstanding public debt. A tax credit for first-time homebuyers also provided the company with a temporary boost in sales. Homebuilding revenues were up 11% from 2009 and net income rose by 7%. However, as home sales declined in 2011, and despite a 4% increase in average home sales price, NVR's revenues fell 13% to $2.7 billion.
In a rare move, NVR (a company that traditionally grows through gains in market share rather than through acquisitions) had arranged to buy the assets of bankrupt Orleans Homebuilders. However, the acquisition target rejected the $170 million bid in favor of a restructuring plan in 2010. – less