Why did D.R. Horton's profit decrease in the first quarter?

D.R. Horton's first-quarter profit decreased due to affordability concerns that impacted home buyer demand and sales.

What is D.R. Horton's outlook for sales incentives?

D.R. Horton expects sales incentives to remain elevated throughout fiscal year 2026 due to ongoing affordability constraints.

Are D.R. Horton's new home starts increasing?

Yes, D.R. Horton anticipates increasing its new home starts in the second quarter.

Home / Business and Economy / D.R. Horton Profit Dips Amid Affordability Woes

D.R. Horton Profit Dips Amid Affordability Woes

22 Jan

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Summary

First-quarter profit declined due to affordability concerns impacting home buyers.
Sales incentives increased, expected to remain elevated throughout fiscal 2026.
Company anticipates an increase in new home starts in the second quarter.

D.R. Horton Profit Dips Amid Affordability Woes

D.R. Horton experienced a decrease in first-quarter profit, primarily due to ongoing homebuyer affordability concerns. These challenges have led to lower sales volumes and a greater reliance on incentives, which are expected to continue throughout fiscal year 2026. Executive Chairman David Auld highlighted that affordability constraints and cautious consumer sentiment are significantly impacting new home demand.

The company's average closing price for the first quarter was $365,500, remaining flat sequentially but down 3% year-over-year. D.R. Horton closed 17,818 homes, a 7% reduction compared to the previous year's quarter. However, recent declines in mortgage rates offer a glimmer of hope for a market recovery, with an uptick in activity observed at sales offices. The company plans to increase new home starts in the second quarter.