Dream Finders Homes (DFH) is a construction company that went public only a few weeks ago and has gained more than 23 percent since then. During the day on the 03rd of February, the shares were trading at $26.20 and were increased by 5.48%. At the last trading session, the prices ranged between $24.50 and $26.20. Today, the company has a market cap of $2.11 billion.
As a home builder company, Dream Finders Homes is among the fastest-growing in the United States. According to the company’s latest report, it grew by 54 % last year due to its operations in the most promising regions regarding property prices and demand. Particularly, the company performs many projects in the South, including all of the American states in the Sun Belt.
One of Dream Finders Homes’ main differentiators is its simple homebuilding model, whereby it retains options on the land but does not acquire plots until it is ready to build homes. That allowed for rapid growth before reaching an above-average return on equity.
This week, Dream Finders Homes (DFH) announced the acquisition of Century Homes Florida. The acquisition will put the company in a stronger position and increase the number of houses erected by almost 10 percent. In the United States, Century Homes has completed more than 1,000 homes, whereas Dream Finders Homes has completed nearly 9,000 homes in its 12-year history. Neither the financial details nor the time frame of the transaction has been disclosed. Currently, Dream Finders Homes is acquiring the company H&H Homes, a home building company located in North Carolina as well.
Recent months have witnessed increased activity in the U.S. construction industry. By December 2020, the number of new homes under construction in the country exceeded 1.66 million. According to the indicated period, the number of building permits issued increased by 4.5 percent on a year-over-year basis.
The recent coronavirus outbreak and technological changes in real estate have changed the market a bit. If teleworking spreads even further after the pandemic, the need for residential real estate will increase even more. In the future, this is a sign of growth for Dream Finders Homes (DFH).