For decades, homebuilding strategies have been built on land, a finite resource that anchors both opportunity and risk.

However, a steepening trajectory of land-light and asset-light models reveals an undeniable truth: the strength of an organization’s people now outweighs the value of the dirt they develop.

The newly available

Key Insights:

  • Land Roles: Salaries for land acquisition and strategy roles saw the steepest increases, reflecting the need for expertise in entitlement and market analysis amid limited land supply.
  • Operations: Rising compensation in operations underscores the value of streamlining build cycles and enhancing construction quality.
  • Sales & Marketing: Increasing pay for sales and marketing leadership highlights the strategic importance of engaging buyers and addressing affordability concerns.

As FTS Director Liz Perkins observes,

We’re proud to unveil the second edition of our Homebuilding Compensation Report, thoughtfully designed to support builders during their critical annual planning season. The year-over-year trends, including significant compensation growth for land and operations professionals, reveal how builders are aligning resources with strategic priorities.”

High-Level Approach to the 2024 FTS Compensation Study

The 2024 FTS Compensation Report represents a thorough and credible benchmark for the homebuilding industry, offering actionable insights into compensation trends across various roles and organizational levels. Designed to support strategic decision-making, the report provides essential data for builders, hiring managers, and professionals seeking to navigate a rapidly changing market with clarity.

Methodology and Sample Size

The 2024 study drew on responses from over 10,000 homebuilding professionals across the U.S., with a robust 18% response rate contributing to approximately 1,800 detailed data points. The dataset spans a wide array of roles within public, private, regional, and national homebuilding organizations. A rigorous data cleaning process ensured accuracy, with bi-weekly reviews conducted by industry specialists to validate trends and align job roles with standardized categories.

The result is a reliable and detailed resource for compensation planning, offering key insights into base salaries, bonus percentages, and year-over-year growth. With its expanded scope and precision, the report stands as a trusted tool for understanding how compensation strategies align with evolving priorities and organizational structures.

The Four Virtues of High-Performance Organizations

The 2024 report positions four critical virtues — adaptability, agility, nimbleness, and resilience — as essential for organizational success in today’s environment. These traits, embodied by top talent, allow builders to navigate both near-term challenges and long-term opportunities.

Adaptability

  • Builders must adapt to shifting economic conditions, including fluctuating interest rates and land scarcity. This requires professionals who can assess risk and pivot strategies in real time.

Agility

  • Agile teams are indispensable for managing demand spikes, supply chain disruptions, and regulatory changes. Incentive-driven compensation structures can reward this capability.

Nimbleness

  • With public builders dominating market share, smaller firms must act decisively in land deals and operational adjustments. Hiring nimble decision-makers is key to competing effectively.

Resilience

  • Resilient organizations invest in training and retention, fostering a workforce that can sustain high performance through economic cycles.

Key Takeaways for Homebuilding Leaders

Leverage Trusted Compensation Data: Reliable benchmarks are indispensable for competitive hiring. As Perkins highlights,

We hold ourselves to the highest standards of data integrity, rigorously cleaning and monitoring responses throughout the year.”

Prioritize People Over Land: Building talent pipelines should rank alongside land investments in strategic importance. Teams skilled in evenflow construction cycles and customer engagement will drive value far beyond what land alone can deliver.

Anticipate Consolidation Trends: Carpitella notes that industry consolidation is shaping compensation trends. Smaller builders must proactively adapt to avoid talent losses to larger public builders.

Plan for 2025 and Beyond: Lower interest rates and demographic demand suggest growth opportunities, but only well-compensated, high-performing teams will be positioned to seize them.

People Are the New Bedrock

As homebuilders prepare for 2025, the 2024 FTS Compensation Report serves as both a diagnostic tool and a strategic guide. It reveals not only what’s happening but why it matters: talent, not land, is the bedrock of modern homebuilding success. By investing in their people, organizations can ensure resilience and agility in a rapidly changing environment, setting the stage for sustained growth and value creation. Homebuilding leaders must embrace the reality that their organizations’ success in 2024 and beyond depends as much on their ability to invest in people as it does on their land strategies. As Liz Perkins reflects:

We’re already exploring enhancements for next year, such as deeper segmentation by builder type and size. Our mission is to support builders with actionable insights that help them plan for the future with confidence.”