Ryland Group Inc. said late Wednesday that R. Chad Dreier will retire as chief executive on May 29 after 15 years with the company. He will continue as board chairman. President Larry Nicholson will succeed him as CEO.

Dreier, 61, was hired as Ryland’s CEO and president in 1993 and was named chairman a year later.

Nicholson, 51, joined the Calabasas homebuilder in 1996 as a vice president of operations. He became chief operating officer in 2007 and president a year later. He will continue to hold the president’s title.

“With Larry as president and chief executive officer, I look forward to continuing as chairman of the board of directors as we continue to work through this challenging time in the homebuilding industry,” said Dreier in a statement.

Dreier’s retirement comes as Ryland works to consolidate operations and cut staff in response to the housing market downturn. The company in January reported its eighth consecutive quarterly loss, but noted that the fourth quarter loss was smaller than a year earlier.

To take advantage of opportunities in the changed market, Ryland this month formed a limited liability company with Oaktree Capital Management LLC to acquire and develop distressed residential real estate projects.

Prior to Wednesday’s announcement, Ryland’s shares closed down $1.01, or 6 percent, to $15.88 on the New York Stock Exchange.