Homebuilding
Case studies in homebuilding.
D.R. Horton: Can the FY25 closing target stay within reach?
D.R. Horton entered fiscal 2025 with an initial target of 90,000–92,000 homebuilding closings. It had closed 89,690 homes in FY2024. The target was therefore a modest increase, but the evidence around demand was mixed: FY2024 net orders rose, cancellations declined, backlog was smaller, and the number of completed unsold homes had increased. Read case
Lennar Corporation: Volume, optionality, and the value of pace
Lennar entered the fall of 2026 with a strategic tension. In its latest quarter, orders and gross margin were lower than a year earlier, while management reported faster construction cycles, lower construction cost per square foot, and fewer completed unsold homes per community. Read case
NVR: Controlling Finished Lots Through the Housing Cycle
On March 1, 2024, NVR’s strategy team is preparing to review the company’s land and community approach. NVR generally buys finished lots from third-party developers under fixed-price lot purchase agreements (LPAs), rather than directly owning and developing land. It also has limited joint-venture (JV) and directly owned land positions. Read case
PulteGroup: How much land should the builder own?
In July 2026, PulteGroup (PHM) had 228,241 lots under its control: 102,323 owned and 125,918 optioned. Management said options let the company defer land acquisition until it decides whether and when to exercise, reducing risks associated with holding land for a long time. At the same time, management described competition for well-positioned land as robust. Read case