Taylor Morrison will invest $12 billion over the next three years and open more than 600 communities as it pushes to close 20,000 homes by 2028.

“Twenty-thousand units is a big number in today’s environment, but today’s market has nothing to do with where we’re going to be in 2028,” chief executive officer Sheryl Palmer told the company’s first-ever investors’ day. “The business is absolutely positioned to do 20,000 units in 2028.”

That would see the company post annual growth around 12% through 2028. It has about 90% of the lots it needs to hit that mark. The builder also shared how its product diversification, differentiation from peers, and customer-centric approach will help Taylor Morrison succeed in today’s uncertain environment and into the future.

Diversification

The diversification of Taylor Morrison’s portfolio—across price points, specs vs. to-be-built, geographics, and demographic groups—provides the company with balance and resilience for any potential cyclical downturns.

“Our diversified approach expands our growth opportunities and allows us to do things that we otherwise would not have been able to do,” Palmer said. “But, more than anything, it protects the business from the eventual cyclicality that we know our industry always feels. Because the reality is not all consumers feel it at the same time, and we have certainly seen that in this environment.”

Taylor Morrison’s prices range from the $300,000s to well above $1 million, with a relatively balanced spread across entry-level (30%), first move-up (18%), second move-up (29%), and resort lifestyle (23%) buyers. The builder’s mix of specs and to-be-builts is also balanced (45%-55%), with specs primarily focused on the entry-level market and the personalized, customized to-be-built product focused on the move-up and resort lifestyle buyers.

“A critical path to this journey is the expansion of [resort lifestyle brand] Esplanade. We expect to double the Esplanade deliveries over the next few years,” Palmer said.

Customer Centricity

Palmer said customer centricity is a “critical” element of the company’s business strategy and is evident in its efforts to optimize the contract process and enhance the Taylor Morrison digital experience.

On contracts, the builder said optimization efforts will deliver 40,000 hours back to sales team members, allowing for more personal interactions and an enhanced customer experience. Additionally, the Canvas design package investments have reduced design product SKUs by nearly 80% in five years and saved customers 60 days by eliminating design studio visits after contract signing.

Chief marketing and communications officer Stephanie McCarty said Taylor Morrison’s digital investment has resulted in tangible improvements to both business results and the customer experience. Online appointments have a 13% conversion rate, self-guided tours have a 9% conversion rate, and online home reservations have a 56% conversion rate, all significant increases since 2020. Online reservations have allowed Taylor Morrison to collect over 23,000 leads and now account for 18% of total sales, highlighting the value of meeting potential home buyers where they are.

Charting a Unique Path

Palmer noted that one of the most essential elements driving Taylor Morrison’s confidence in its long-term targets is its conviction for its unique approach to the home building business.
“It allows us to think differently than our peers do and, ultimately, deliver a very different experience and performance,” said Palmer.

The builder's approach to the land market is one manifestation of this courage to be different.

“I’ve always found it fascinating that the appetite of builders tends to follow the last 90 days of sales,” Palmer said. “The land we’re buying today has nothing to do with what’s happening with interest rates today and what the market’s delivering today.”

Palmer also cited Taylor Morrison’s commitment to to-be-builts rather than pivoting to an 80% spec business as a result of short-term COVID-related trends. Additionally, the company is willing to experiment with ways technology can enhance the business and is not “spreading [ing] incentives like peanut butter” but instead insulating incentives to the needs of individual customers.

“The important thing is not just the courage, but the intentionality to go after it and do something that the industry is not doing,” Palmer said.