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The Biggest Challenges and Silver Linings for the Largest U.S. Home Builder

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Builders

The Biggest Challenges and Silver Linings for the Largest U.S. Home Builder

Home building is booming nationwide amid soaring demand, but some challenges remain even for the biggest names in the industry

 


April 27, 2022
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DR Horton is the largest home builder in the U.S., but its shares have fallen 32% in 2022 as unfavorable market conditions continue to slow nationwide housing production. In order to adapt to ongoing supply chain disruptions and rising rates for building materials, DR Horton expanded its cycle times and slowed production to avoid a buyer backlog, and it recently revised its estimate of closed homes this year from 90-92k to 88-90K. Still, the company is seeing strong homebuyer demand even in the face of rising inflation, a sign that home building will continue to forge through a post-pandemic affordability crisis, according to Forexlive. 

They said this in the press release:

“Housing market conditions remain strong despite the rise in mortgage rates, as we continue to experience homebuyer demand that exceeds our pace of supply. We are still selling homes later in the construction cycle to better ensure the certainty of the home close date for our homebuyers, and we are continuing to work to stabilize and then reduce our construction cycle times to historical norms."

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