There’s a new publicly traded home builder in the United States, as United Homes made its debut on the Nasdaq following the merger of DiamondHead Holdings and Great Southern Homes.
The company’s shares surged 63% in their first day of trading on a volume of 794,509, driving its valuation in line with other home builders that have managed to post solid gains in 2023 despite the wider market slowdown.
The merger, which valued the company at $572 million when it was announced in September, closed March 31 as its stock began trading on the Nasdaq under the ticker “UHG.”
DiamondHead Holdings has been renamed as United Homes Group, and Great Southern Homes will continue to operate under its own name as a sub-brand. As one of the largest home builders in the Southeast, Great Southern Homes—No. 45 on the 2022 Builder 100—builds entry-level and first-time move-up homes in South Carolina and Georgia with new expansion into North Carolina.
The builder plans to employ a capital efficient “land-light” operating model that is expected to generate higher returns with lower cyclical risk compared with a traditional home building operating model.
“We currently have a strong presence in some of the best markets in the Southeast and look forward to expanding our geographic footprint with the proceeds from this transaction,” says Michael Nieri, CEO of United Homes Group. “With keen focus on new home affordability, an established track record of success, and a wealth of operational expertise, I am confident that United Homes Group can successfully grow its existing operations and expand into new markets.”
The management team of Great Southern Homes, including CEO and founder Nieri, will continue to lead United Homes Group. DiamondHead co-CEOs David Hamamoto and Michael Bayles will join as directors, and DiamondHead chief financial officer Keith Feldman will join United under the same title of CFO.
“United Homes Group will also operate with a land-light strategy, allowing for a more capital efficient home building operation and better risk-adjusted returns for our shareholders,” Hamamoto said. “Given this strategic focus, along with the long-term outlook for the home building industry and the favorable growth trajectory of our markets, we are extremely optimistic about the future of United Homes Group.”
This article has been updated March 31, 2023.
