The residential real estate construction market is highly fragmented. About 2,000 companies have more than $10 million in sales. 80% of homes built are single family homes and 20% are multi-family units. The building process has several overlapping stages, including: land acquisition, land development, permit acquisition, construction (often in phases), and marketing and sales. Construction costs typically average 80% of the sales price with two-thirds of the costs in construction materials and one-third of the costs in construction labor. Industry challenges include: rising building materials costs, increased interest rates, and the beginnings of a housing slowdown. J.H. Cohn helps clients structure their companies to minimize their tax burden, increase operating margins, and obtain low-cost financing.