flexiblefullpage - default
Currently Reading

Home Builders Are Focusing on Affordable Homes, First-Time Homebuyers

Advertisement
billboard - default

Home Builders Are Focusing on Affordable Homes, First-Time Homebuyers


February 1, 2018
House exterior
Photo: Unsplash

U.S. home builder D.R. Horton's Express Homes brand launched in 2014, geared toward first-time homebuyers. Last quarter, Express accounted for over one-third of homes sold, and over one-fourth of home sales.

When Horton launched Express, majority of homebuilders were focused on buying land in city centers. Horton bought land in less fashionable and less developed areas to build cheaper and smaller homes. However, other firms are taking notice of the affordable housing market, as Horton's unit is expected to grow 10 to 15 percent by 2021. “Lennar and Pulte tend to try to generate the best margins they can, Horton is willing to sacrifice a little on margins in order to improve their turnover and returns,” Moody’s Investors Service Vice President Joseph Snider told Reuters

“While the new tax laws may affect the upper-end home buyers and owners, there is enough demand strength for less-expensive homes, particularly in first-time homes, to keep the industry growing in 2018,” Snider wrote in a note published earlier this month. Demand for starter homes has become the “sweet spot” of the homebuilding industry, Snider told Reuters.

Read more

Related Stories

Affordability

As Mortgage Rates Surge to 7%, Buyers Face Shrinking Window of Opportunity

Housing affordability recently took another hit as the 30-year fixed mortgage rate reached 7%, and a growing number of prospective buyers are struggling to stay in the game

Housing Markets

A Housing Reset Can’t Slow These Popular Seller’s Markets

The housing market may be slowing, but sellers are still in the driver's seat in these affordable homebuying destinations

Affordability

Rent Is Expected to Keep Climbing in 2023, but Just How High Will It Go?

Median rent fell for the first time since November last month, but renters shouldn't get their hopes up just yet, experts say

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.