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DR Horton to cut back on construction this year due to rising supply costs, labor market | Business – New Orleans, Louisiana

New Orleans, Louisiana 2021-09-22 10:42:00 –

Texas-based homebuilder DR Horton, operating in Lafayette and southern Louisiana, announced on Monday that supply chain disruptions have reduced the number of homes it plans to build later this year. ..

Company officials have announced that they will build 21,300-21,700 homes in the fourth quarter. This will decrease from 23,000 to 24,500 units earlier this year due to supply shortages, delivery delays and tight labor markets. The number of homes expected to close this year will also decrease slightly.

The decline in earnings due to the decline in closures will be partially offset by the expected rise in average home selling prices during the period, according to company officials. Consolidated sales for the quarter and for the full year are expected to decline slightly.

As demand for new homes continues to be strong and housing supply is limited in many U.S. markets, company officials currently expect a gross margin on home sales of 26.5% to 26.8% in the fourth quarter. , A slight improvement over the previous range.

The company has maintained a strong pace of housing starts this quarter and is expected to close homes at a double-digit pace next year.



DR Horton to cut back on construction this year due to rising supply costs, labor market | Business Source link DR Horton to cut back on construction this year due to rising supply costs, labor market | Business

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