A framework for analysing quality in the US homebuilding industry

The homebuilding industry in the United States is a large but fragmented industry. Its single-family, detached homes (S/F) segment has built about a million new homes each year since 1994. In 1999, it sold 904,000 S/F units at a medium price of $159,800. The industry's 400 largest builders completed 314,234 S/F homes. The country's largest builder, the Pulte Corporation ($3.84 billion in revenues), completed 26,662 units including 16,014 units in 1999. From a management perpective, the homebuilding industry is also one the least studied sectors of the U.S. economy. Its sheer size calls for focus on issues of managing quality and customer satisfaction. This exploratory research has identified, collected, and analyzed data related to management of quality for the period 1992-99. After identifying the major quality drivers, a framework to analyze quality in the industry has been developed by this investigator. A multi-method research methodology has been deployed; field and case studies have augmented the survey method. To verify what builders and homeowners are saying regarding quality, internal and external failure data have been collected and analysed. The framework should stimulate interest among management scholars and practitioners alike. Since the framework examines the fundamental issues of government regulation, homeowner satisfaction and subcontractor management as they influence quality of the newly constructed house, the analysis should help the builders and the homebuilding industry in their quest for quality. For those interested in establishing a quality measurement system, the framework offers a good starting point and systematic approach.