Homebuilders are taking a new approach to growth in 2021. Tri Pointe Homes' CEO Doug Bauer says the firm plans to take a more prudent approach to growth this year, a divergence from more aggressive growth strategies from past cycles. Tri Pointe is entering 2021 with a focus leveraging strengthening market fundamentals, financial returns and its re-branding initiative.

"While we are in a great position to leverage our size and scale and take advantage of solid market fundamentals, we continue to grow operations in a disciplined manner given the cyclical nature of our industry," Bauer tells GlobeSt.com.

Bauer says it is a tactic that the company's competitors are adopting a similar approach. "This prudent approach, which is favored by our competitors as well, is a departure from the "growth at all costs" operating strategies of previous cycles, and should result in a more rational, consistent operating environment over time," he adds.