Meritage Homes Corporation is one of the largest homebuilders in the United States, specializing in the design, construction, and sale of single-family homes. The company's business model is centered on acquiring and developing land, and constructing homes targeted primarily at entry-level and first move-up buyers. Meritage operates through two main segments: Homebuilding and Financial Services. The Homebuilding segment generates the vast majority of the company's revenue (typically over 95%) and is geographically divided into the West, Central, and East regions, covering states such as Arizona, California, Colorado, Texas, Florida, Georgia, North Carolina, South Carolina, and Tennessee.
The Financial Services segment complements the core business by providing title and escrow, mortgage, insurance, and closing/settlement services to its homebuyers, primarily through its wholly-owned subsidiary, Carefree Title Agency, Inc., and an unconsolidated mortgage joint venture. Meritage Homes differentiates itself in the highly competitive residential construction market through a strong emphasis on energy efficiency, sustainable building practices, and standardized home designs. The company has increasingly focused on a speculative inventory model to capitalize on the demand for affordable, immediately available homes. By streamlining its operations and targeting high-growth demographic segments, Meritage competes effectively against other national builders.
