The strategic approach of Meritage Homes is unique among its large public home building peers. The builder’s 100% entry-level spec strategy includes a 60-day closing guarantee and strong realtor relationships. The pivot to an all-spec approach enabled Meritage Homes to become a top five national builder.
“We believe competing with resale differentiates us from our peers and is the right strategy given today’s market dynamics,” CEO Phillippe Lord says. “We are the only public builder to guarantee home buyers a move-in date within 60 days of sale, aligning with the timeline for resale inventory. Our homes are livable from day one as we provide appliances, window coverings, and light landscaping in the backyard.”
Despite consumer confidence challenges and closings dipping on a year-over-year basis in 2025, Meritage remained focused and stands to benefit when market conditions improve.
“We expanded our community count to 336 active communities, the highest in our company’s history,” Lord says. “And with greater efficiencies gained in our construction process, we reduced our cycle times this past year to approximately 105 calendar days, setting the stage for improved capital efficiency and inventory turns.”
Lord says the company plans to grow community count by 5% to 10% in 2026. He says the company’s growing relationships with third-party brokers will continue to benefit Meritage Homes with entry-level buyers.
“Persistent concerns about job security, the broader macro environment, elevated inflation, and even rising gas prices now continue to drive hesitation,” Lord says. “For builders, the opportunity lies in overcoming that hurdle and tapping into the existing demand for housing.”
