Earnings reports from public builders continue to reinforce prevailing narratives about the 2025 housing market: Economic uncertainty and elevated interest rates are weighing down consumer confidence, leading to more challenging and choppy market conditions.
During the week of July 28, Dream Finders Homes, Beazer Homes, and Green Brick Partners released their quarterly results. The themes highlighted in their earnings calls—affordability challenges, sales incentives, and overall market headwinds—echoes what other public builders have shared in recent weeks. Despite the near-term difficulties, executives from all three companies expressed optimism about the long-term outlook for the housing market.Â
Quarter By the Numbers
- Dream Finders Homes: Net new orders increased 13% year over year to 1,938 in the second quarter. Closings and revenue increased 10% and 4% to 2,232 and $1.1 billion, respectively. The company posted a profit of $57 million, or $0.57 per share, down from $81 million, or $0.83 per share, in the second quarter of 2024.
- Beazer Homes: Net new orders declined by 19.5% to 861, driven by a 30.0% decline in sales pace during the quarter. Home building revenue declined 9.2% to $535.4 million in the quarter, driven by an 11.3% decrease in home closings to 1,035. The company reported a net loss of $0.3 million, or $0.01 per share, in the quarter.
- Green Brick Partners: Net new orders increased 6.2% to 908 units in the quarter, driven by a steady monthly sales pace of 3.0 per community. Closings increased 5.6% to 1,042 units in the quarter while home building revenue declined 2.0% to $549.1 million. Second quarter profit was $82 million, or $1.85 per share.
What They’re Saying
“The industry continues to be faced with challenges from elevated interest rates straining housing affordability and weakening consumer confidence. While this is perhaps the most challenging environment in the past three years—since rates became elevated in mid-2022—I am proud of our team’s execution and focus on our long-term vision and I am confident in our ability to drive meaningful growth organically and through acquisitions.” — Patrick Zalupski, chairman and CEO, Dream Finders Homes
“At a macro level, affordability concerns and rising new and used home inventories impacted both traffic and sales conversion. While it’s impossible for us to know if or when mortgage rates may decline, we believe new home inventories will gradually be absorbed over the next several quarters because builders have already reduced starts activity. Longer term, the structural housing shortage supports demand for new homes in our markets.” — Allan Merrill, chairman and CEO, Beazer Homes
“Maintaining our sales volume required price concessions and other incentives as we address the affordability challenges raised in this high-interest rate environment. As expected, these dynamics put downward pressure on our home building gross margins… Looking ahead, our strategic focus remains on maintaining operational excellence while navigating ongoing market volatility. Our continued emphasis on cost controls, innovative home offerings, and targeted expansion in high-volume markets supports our goal of sustaining industry-leading profitability metrics and creating long-term shareholder value.” — Jim Brickman, CEO, Green Brick Partners