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HomeSphere CEO Glenn Renner Talks Managing Margins with Builder and Developer

June 12, 2019

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HomeSphere’s CEO Glenn Renner recently offered words of advice in Builder and Developer for home builders looking to manage margins. The answer? Well, builders shouldn’t look to just one answer, and instead search for efficiencies in all areas of their businesses.

Renner’s advice is based on HomeSphere and BTIG’s Builder Intelligence Report, a monthly survey that goes out to more than 2,600 regional builders. According to survey results, trends are looking good coming out of Q1 2019, but builders have made it clear the quarter has had both its sunny and cloudy spots.

The sunny: Sales are slowly rebounding from late 2018, while building costs appear to be coming down. The cloudy: Builders are finding it difficult to manage higher material costs with higher home pricing. But Renner warns there isn't only one solution for managing costs.

From the article:

Builders with entry-level exposure continue to fare well. The economy remains strong, and the housing supply relatively low. In our view, builders have a choice in the way they manage the slowdown. A builder can choose to lower prices, offer incentives, get lean or wait it out with the faith that the economy will remain healthy. Perhaps the answer is all of the above. In this last month, five percent of our respondents opted to lower some or all prices, 39 percent increased incentives and a little more than 50 percent stayed the course.

About the HomeSphere/BTIG Builder Intelligence Report

HomeSphere partners with the research firm BTIG to create a monthly report to provide our builders and manufacturers with exclusive and timely insights about the market.

To compile the report, we survey HomeSphere’s 2,600 regional and local home builders about sales, traffic, pricing, labor costs and other key industry metrics.

How to Get the Monthly Report

If you are a builder and would like to participate and receive the monthly report for free, request an invitation below:

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