The challenging housing environment remained front and center as Green Brick Partners, Meritage Homes, and Dream Finders Homes reported third-quarter results.
Rising mortgage rates and affordability constraints continued to pressure consumer sentiment and margins. Green Brick Partners grew orders and deliveries despite the difficult backdrop, while Meritage Homes prioritized margins over a higher sales pace. Dream Finders Homes achieved record third-quarter closings while absorbing costs associated with its acquisition of Beazer Homes.
Quarter by the Numbers
- Green Brick Partners: Net new-home orders increased 3% year over year to 926, while deliveries also increased 3% to 978 homes. Home closing revenue declined 9.7% to $437 million as the average sales price of delivered homes fell 12.1% to $446,700. Home building gross margin was 28%, compared with 32.1% a year earlier. The builder reported net income attributable to Green Brick Partners of $59.2 million, or $1.35 per diluted share, compared with $77.9 million, or $1.77 per diluted share, in the prior-year period.
- Meritage Homes: Orders declined 15% year over year to 3,083, while closings fell 14% to 3,187. Home closing revenue declined 17% to $1.16 billion as the average closing price decreased 4% to $365,000. Home closing gross margin was 17.4%, down 170 basis points from 19.1% a year earlier. Meritage Homes reported net earnings of $67.8 million, or $1.04 per diluted share, compared with $99.3 million, or $1.39 per diluted share, a year ago. The company ended the quarter with 348 communities, up 4% year over year.
- Dream Finders Homes: Home closings increased 3% to a third-quarter record of 1,967, while home building revenue increased 3% to $942 million. Net sales totaled 1,712, down from 2,021 a year earlier, though net sales excluding built-for-rent activity increased 6%. Home building gross margin declined to 14.9% from 17.5%. Net income attributable to Dream Finders Homes was $7 million, compared with $47 million a year earlier. Excluding $23 million of Beazer Homes acquisition costs, net income attributable to the company was $27 million, or $0.22 per basic share.
What They’re Saying
“Despite continued affordability pressures, broader economic uncertainty, and an increasing rate environment, demand across our markets remained resilient as buyers responded to our incentive strategy and attractive product offerings, particularly within Trophy Signature Homes. We continue to respond to deteriorating market conditions to maintain sales pace.”
— Jim Brickman, co-CEO and co-founder, Green Brick Partners
“In the third quarter of 2026, we navigated an increasingly challenging home buying environment marked by rising mortgage interest rates and persistent geopolitical and macroeconomic uncertainty. Constrained affordability weighed on consumer sentiment, which was reflected in our 15% year-over-year decline in third quarter orders despite achieving an average absorption pace of 3.0 net sales per month per store.”
— Steven J. Hilton, executive chairman, Meritage Homes
“Buyers faced a challenging summer, as rising mortgage rates further strained affordability and weighed on consumer confidence. I’m proud of how our team navigated these market conditions. We closed 1,967 homes in the quarter, a third-quarter record, and 6,127 homes year-to-date, also a record, while net sales increased 6% compared with the prior year.”
— Patrick Zalupski, founder, co-chairman and CEO, Dream Finders Homes
Since quarter-end, Dream Finders Homes completed its approximately $2.2 billion acquisition of Beazer Homes. Zalupski said the company expects additional nonrecurring transaction and integration costs during the fourth quarter as it works toward $100 million in targeted cost savings from the combination. The company reiterated its full-year 2026 guidance of approximately 9,250 home closings.
