Houses undergo construction in a neighborhood in Austin, Texas, on April 17, 2025. Brandon Bell/Getty Images
Homebuilder earnings reports released in recent days point to a challenging environment for the industry, as companies increasingly rely on incentives and mortgage rate buydowns to reduce elevated inventories during a sluggish spring selling season.
Executives’ commentary has underscored the pressures facing the sector. D.R. Horton’s April 21 conference call, following its earnings report for the fiscal second quarter, which ended on March 31, highlighted the broader trend.
Incentives on the Rise
The company began the quarter with 20,000 homes in inventory and ended with 36,900. As of March 31, 23,500 of those homes were unsold, including 8,400 completed, down by 2,000 from December 2025, Paul Romanowski, CEO of D.R. Horton, said during the call.
