Richmond American Homes believes in enriching lives through home ownership. Encompassing the homebuilding subsidiaries of M.D.C. Holdings (MDC), Richmond American is one of the top homebuilders in Colorado and operates in othe US markets, including Arizona, California, Delaware, Florida, Illinois, Maryland, Nevada, New Jersey, Pennsylvania, Utah, northern Virginia, Washington, and West Virginia. The company also provides mortgage financing, insurance and title services, primarily for MDC homebuyers, through its wholly owned subsidiaries, HomeAmerican Mortgage Corporation, American Home Insurance Agency and American Home Title and Escrow. Richmond American targets first-time and move-up buyers.
Richmond American grew with the housing boom of the early 2000s, but began contracting as the market fell off after 2007. The firm reported closing only 2,000 home sales in the first quarter of 2008, compared with 3,200 in the same period the previous year. The average selling price of a home in 2007 was $337,000, compared to $354,000 in 2006.
Richmond American currently operates 260 housing communities in 13 states. The company left the Texas homebuilding market in 2007.
Despite its losses, Richmond American has a strategy in place for an eventual rebound after the downturn. The company has maintained a strong cash position and kept its land supply low, while reducing labor costs. The firm's current inventory of land is is fully developed and will not incur expenses before new building commences.