In an effort to help first-time homebuyers facing affordability headwinds, Pulte Group is ramping up production of homes priced for entry-level shoppers.
Pulte chief executive Ryan Marshall says that at the end of the first quarter, the builder allotted 35 percent of its lots for first-time buyers, five percent more than in previous first quarters, MarketWatch reports. Pulte is targeting 30 percent of lots for move-up buyers and 35 percent for active adult communities.
“Certainly, our transition to a larger percentage of lower-priced first-time buyer lots and the recent decline in mortgage rates can help solve some of the affordability challenges that today’s home buyers are facing,” Marshall said. “However, our real opportunity lies in lowering house cost not just for first-time buyers, but across our entire planned portfolio.”
Marshall provided an upbeat outlook for the housing market. “Helped by the recent decline in mortgage rates, home buyers have been steadily returning to the market after a period of slowing demand that began in the second half of 2018,” Marshall said. “Given the very positive macroeconomic backdrop, we continue to maintain a constructive view on the overall housing cycle and are pleased with our competitive position in the markets in which we operate.”