America’s largest builder says rising housing inventory is starting to impact sales in Florida and Texas

D.R. Horton’s CEO noted that rising inventory in Florida and Texas has impacted sales, particularly in certain markets where home valuations surged. Homebuilders in these states are offering significant sales incentives, spending 10% of the sales price in Florida compared to 3% in the Northeast. This trend reflects a broader willingness among builders to adjust margins to maintain sales volume. Despite increased inventory, affordable housing supply remains limited, prompting builders to use incentives like mortgage rate buy-downs to stimulate demand.