"At December 31, 2024, the Company had 36,200 homes in inventory, of which 25,700 were unsold. 10,400 of the Company’s unsold homes at December 31, 2024 were completed, of which 1,300 had been completed for greater than six months.
The number of rental units (for-sale houses that didn't sell) are up, but rental profitability is way down:
The Company's rental operations generated $11.9 million of pre-tax income on revenues of $217.8 million in the first quarter of fiscal 2025 compared to $31.3 million of pre-tax income on revenues of $195.3 million in the same quarter of fiscal 2024."
"D.R. Horton's debt increased from $5.14 billion in September 2023 to $5.98 billion in September 2024"
With unemployment dropping to 4% and the Fed continuing to be backward looking, their hands will be tied and they will once again be predictably behind. We saw this coming a year and a half ago with the political infusion of liquidity.
What is not clear to me is if they learned any lessons. Will they panic again and take it to the zero bound? Will they restart QE?
DR Horton overbuilt.
"At December 31, 2024, the Company had 36,200 homes in inventory, of which 25,700 were unsold. 10,400 of the Company’s unsold homes at December 31, 2024 were completed, of which 1,300 had been completed for greater than six months.
The number of rental units (for-sale houses that didn't sell) are up, but rental profitability is way down:
The Company's rental operations generated $11.9 million of pre-tax income on revenues of $217.8 million in the first quarter of fiscal 2025 compared to $31.3 million of pre-tax income on revenues of $195.3 million in the same quarter of fiscal 2024."
"D.R. Horton's debt increased from $5.14 billion in September 2023 to $5.98 billion in September 2024"
Thanks Alf for the housing data.
There are many illegals working in the U.S. construction industry so any fall off will not impact stated employment numbers like the past.
With unemployment dropping to 4% and the Fed continuing to be backward looking, their hands will be tied and they will once again be predictably behind. We saw this coming a year and a half ago with the political infusion of liquidity.
What is not clear to me is if they learned any lessons. Will they panic again and take it to the zero bound? Will they restart QE?
We will see.