DHI · 8-K · 20261029PR000119

Homebuilding Demand Trends

HORTON D R INC /DE/ · 2026-10-29 · Importance 43 · Surprise 32 · No source text

D.R. Horton said rising mortgage rates, affordability constraints and cautious consumer sentiment pressured new-home demand in the fourth quarter, and it adjusted incentives, pricing and starts by community to align inventory with demand. Quarterly net sales orders fell 7% to 18,619 homes and 9% in value to $6.6 billion; the cancellation rate rose to 23% from 20%. Regional order declines were particularly pronounced in the Northwest, where quarterly orders fell 18% and order value fell 26%, and the South Central, where orders fell 15% and order value fell 17%. For fiscal 2026, net sales orders increased 2% to 84,995 homes, while their value was unchanged at $30.9 billion.

Key facts

• D.R. Horton's fourth-quarter net sales orders decreased 7% to 18,619 homes and decreased 9% in value to $6.6 billion. source
• Fiscal 2026 net sales orders increased 2% to 84,995 homes and were unchanged in value at $30.9 billion. source
• D.R. Horton expects incentives to remain elevated in fiscal 2027, with the extent depending on market conditions throughout the year. source
• Fourth-quarter housing market conditions became more challenging as rising mortgage rates, affordability constraints and cautious consumer sentiment pressured new home demand. source
• D.R. Horton adjusted incentives, pricing and starts on a community-by-community basis to align inventory levels with current demand. source
• D.R. Horton had 28,200 homes in inventory at fiscal 2026 year-end, including 17,700 unsold homes. source
• Of D.R. Horton's unsold homes at fiscal 2026 year-end, 8,800 were completed, including 600 completed for more than six months. source
• D.R. Horton's fourth-quarter cancellation rate was 23%, compared with 20% in the prior-year quarter. source

Impact estimates