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Private homebuilders sell at premiums to public valuations
Whelan Advisory has closed 49 transactions totaling more than $15 billion over the past eight years, according to HousingWire.
HousingWire reports that private homebuilders are trading at premiums to public builders' valuations as buyers seek scale supported by meaningful lot pipelines and current demand for expansion.
The outlet notes that Whelan Advisory expects housing-sector M&A to keep moving at a rapid pace, potentially including a mega-merger among major homebuilders.
HousingWire adds that Margaret Whelan, founder and CEO of Whelan Advisory, said builders looking for greater scale need to pursue acquisitions, given that more closings depend on having enough lots in strong housing markets.
The article also quotes Whelan that 11 builders exceed 10,000 closings annually and just 11 major housing markets exceed 10,000 single-family permits annually.