(Disclosure: Rose Law Group represents Lennar, Meritage Homes, Taylor Morrison, and Toll Brothers.)
By Vincent Salandro | Builder
Despite volatility in the market due to mortgage rates in the second quarter, public builders reported strong results, characterized by strong year-over-year gains in revenue, closings, and orders.
Publics remained optimistic about the housing market, with the same underlying fundamentals present in recent quarters—including limited resale supply, the undersupply of housing, and the increasing number of households forming among millennials and Gen Z buyers—supporting positive outlooks. With impending Fed rate cuts and a new operating environment following the effective date of the NAR settlement, builders are facing several unknowns in the latter half of the year.
Rising land and input costs are creating challenges for home builders, but land-light approaches and partnerships with third-party land developers are allowing many public builders to limit risk and maintain progress towards growth targets.
