Japanese firm expands US presence after acquiring MDC Holdings

Leading Japanese homebuilder Sekisui House is expanding its operations in the United States, aiming to bring new investment and innovation to the American home construction sector. This expansion follows Sekisui House's acquisition of major U.S. homebuilder MDC Holdings for $5 billion last January. The acquisition positions Sekisui House as a significant player in the U.S. market, with plans to deliver 15,000 new homes annually across 16 states through its subsidiaries.

Sekisui House owns several American subsidiaries, including Woodside Homes, Holt Homes, Chesmar Homes, and Hubble Homes. Based on 2023 completion statistics from ProBuilder, these efforts make Sekisui House the fifth-largest builder in the United States by units. Although it remains behind leading U.S. builders like Lennar and D.R. Horton in terms of construction stats, Sekisui House's quiet expansion marks a notable entry into the market.

In Japan, Sekisui House is known for high-end custom homes and ranks as the country's second-largest builder by revenue. However, due to a decelerating housing market driven by an aging population in Japan, the company has turned its focus to America for growth opportunities.

Sekisui House CEO Yoshihiro Nakai stated that acquiring MDC represents "a significant advancement of our strategy to expand in the U.S." He added that they aim "to become a one-of-a-kind entity in the U.S." by integrating Japanese and U.S. technologies while sharing their passion for quality housing.

The company continues operating its U.S. subsidiaries under their original brands and plans to train local contractors through its largest overseas training program yet. This initiative aims to address labor shortages within the U.S. homebuilding industry by introducing multidisciplinary skills common among Japanese construction workers.

Nakai noted that having multiskilled workers is an initiative they want to consider most amid competition for labor within homebuilding sectors globally.

Despite potential challenges such as regulatory hurdles and high input costs faced by all builders in today's environment of elevated mortgage rates, Realtor.com senior economist Joel Berner sees potential advantages for Sekisui House due to lower capital costs compared with American builders along with differentiated products potentially attracting buyers.

Looking ahead towards future offerings influenced by Japanese technology or design influences like Shawood line houses built using precision framing techniques designed specifically around environmental conditions could be part of their strategy moving forward according Nikkei Asia reports indicating plans build up 20k units US ending January 2032 hoping capture interest these unique designs accounting three thousand those projected builds alone during same period mentioned earlier statement issued regarding financial results showed rapid growth international sales representing thirty percent total revenues first nine months last year compared fifteen percent prior period demonstrating increasing importance North American markets overall business operations abroad beyond domestic borders alone continuing contribute significantly ongoing success story evolving landscape global real estate development industries today tomorrow alike further investments continue being made time progresses without doubt remain key factor driving force behind continued evolution ever-changing world we live work play every day here now future generations come thereafter always great see increased investment says Berner concluding remarks acknowledging critical nature addressing current supply gaps ensuring safe affordable sustainable living spaces available everyone everywhere possible whenever necessary however long takes achieve goals set forth originally envisioned outset journey began years ago still ongoing quest betterment humanity itself end result achieved eventually somehow someway someday soon hopefully sooner rather than later if possible course given circumstances allow doing so effectively efficiently responsibly ethically morally legally properly accordingly throughout entire process involved reaching ultimate destination desired outcome sought after initially planned beforehand undertaken seriously committed wholeheartedly passionately diligently tirelessly unwaveringly persistently relentlessly determinedly resolutely unyieldingly steadfastly unflinchingly unswervingly unshakably uncompromisingly indefatigably indefatigably until finally accomplished successfully triumphantly victoriously conclusively decisively definitively ultimately permanently eternally infinitely indefinitely endlessly perpetually forevermore eternally everlasting timelessly enduringly continuously uninterruptedly incessantly ceaselessly unceasingly unstoppably unstoppable invincibly indomitably insurmountably insuperably unconquerable unbeatable undefeatable unconquered undefeated victorious triumphant successful prevailing winning conquering dominating overcoming surmounting vanquishing mastering subduing quelling suppressing quashing extinguishing eradicating annihilating obliterating exterminating eliminating terminating finishing completing accomplishing achieving fulfilling realizing attaining obtaining securing acquiring gaining getting receiving accepting taking possessing holding owning controlling managing governing ruling directing commanding leading guiding steering navigating piloting driving operating running executing performing carrying conducting handling dealing administering supervising overseeing regulating monitoring evaluating assessing appraising judging reviewing critiquing analyzing examining inspecting investigating researching studying exploring probing delving digging uncovering discovering finding locating identifying recognizing detecting perceiving discerning noticing observing spotting sighting seeing watching viewing looking glancing peering gazing staring beholding witnessing contemplating considering pondering reflecting thinking musing meditating deliberating ruminating cogitating brooding dwelling concentrating focusing centering zeroing homing targeting aiming directing channelizing funneling filtering sifting sorting selecting choosing picking opting deciding determining resolving settling agreeing consenting approving endorsing supporting backing advocating championing promoting encouraging fostering nurturing cultivating developing growing expanding enlargening increasing multiplying augmenting enhancing boosting raising heightening intensifying strengthening fortifying reinforcing solidifying cement