Issue Focus

● This study attempts to deduce implications of the business models of the housing corporations operating in the US market, where key figures such as asset value fluctuation and rising rents are functioning. ● The analysis result divided the business models into three categories: 1) Construction based model, 2) Developer model, and 3) Investment-based model. ● First, in the case of D.R. Horton, a construction-based model company, focusing on the single-family house division, which constitutes a large portion of the US housing market, has made it vulnerable to the economic cycles. Therefore, competency in risk management of economic fluctuations is the key. Whereas Sun Communities, who focused on the manufactured housing market, is enjoying a relatively high profit by improving construction methods and developing a new source of income from renting out the land. ● Trammel Crow, a developer model corporation, can be considered a case of unifying the developer model and the investment-based model as they receive fees for development work and create profit by investing in shares as institutional investors. Another developer-model, American Campus Communities, focus their development work on student dormitories and lab facilities, which is a new market. ● Finally, for the investment-based model, Stuyvesant Town, a rental housing complex in New York purchased by Blackstone, a real estate investment company, and Invitation Homes, a rental housing company, can be analyzed. The case of Stuyvesant Town showed a business model that relied heavily on a close partnership between the public and private sector, which Invitation Homes impressed in the single-family housing rental market by purchasing the houses during the housing economy’s down periods. ● Compiling the analysis results shows that all six companies are expanding their value chains to integrate the entire industrial field from financing to operation, making fund securing through the development of various financial products mandatory. Furthermore, the development of products in response to market change or new construction methods exemplify the continuous industrial innovation and advancement.