PulteGroup, Inc. (NYSE:PHM) CEO Ryan Marshall said that the U.S. housing market remains stronger than many believe, pointing to broad-based demand across buyer segments and continued momentum in Florida despite affordability pressures.
Speaking with CNBC on Tuesday, Marshall said, “It’s actually a pretty good housing market right now,” adding that PulteGroup’s national footprint, diversified customer base and operating platform have helped the company outperform.
Marshall said the homebuilder serves first-time buyers, move-up buyers and retirees through its Centex, Pulte Homes and Del Webb brands. He also highlighted the company’s balance sheet and land pipeline, saying they position PulteGroup for future growth.
When asked how he could describe the market as healthy despite double-digit declines in earnings and revenue from a year ago, Marshall said the company is focused on long-term demand.
“We’re really looking at the long term,” he said. “I’d point to the quarter that we just reported where we had 6% order growth. And we saw order growth up in every single category. Entry-level, move-up, and the retiree buyer.”
Marshall said the company is “bullish” on both the long-term potential of the U.S. housing market and PulteGroup’s own growth prospects.
Florida Strength
Marshall also pointed to Florida as one of the company’s strongest markets.
“We were up 19% in Florida,” he said, noting the state has posted several consecutive quarters of growth. He attributed the strength to Florida’s jobs, lifestyle and appeal to both retirees and working families.
Marshall also highlighted new developments, including The Grow in Orlando, an “agrihood” centered on farm-to-table living, and Explore by Del Webb, a resort-style community designed for Generation X buyers.
PulteGroup reported second-quarter results last week that topped Wall Street expectations, although home sale revenue declined 11% from a year earlier. The company recorded 6% growth in net new orders, with Florida orders rising 19%, while management said affordability pressures, interest rate volatility and economic uncertainty continued to weigh on the broader market.
Marshall’s comments come as the broader housing market continues to face affordability challenges. Recent industry data has shown mortgage rates hovering around 6.5%, home prices remaining near record highs and borrowing costs weighing on prospective buyers.
At the same time, major homebuilders have continued using incentives to attract buyers, while other industry executives have described the market as increasingly divided between cash buyers, financed buyers, homeowners locked into low-rate mortgages and builders competing for demand.
Other builders, including D.R. Horton Inc. (NYSE:DHI) , have also warned that affordability pressures and cautious consumer sentiment continue to weigh on new-home demand, even as parts of the market show signs of stabilizing.
Disclaimer: This content was produced with the help of AI tools and was reviewed and published by Benzinga editors.
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