MW D.R. Horton sees home supply increase, but affordability is still an issue

By Tomi Kilgore

Home builder's stock rallies toward longest win streak in over a year as revenue falls but is well above expectations

Shares of D.R. Horton Inc. were climbing in early Tuesday trading after the home builder reported fiscal first-quarter profit and revenue that fell - but stayed well above expectations - as housing demand remained strong despite continued affordability challenges.

Meanwhile, orders for homes and the value of home orders fell more than expected and inventories increased as the order backlog dropped.

The stock $(DHI)$ climbed 6.3% in premarket trading toward a sixth straight gain. That puts it on track for the longest win streak since the eight-day stretch that ended Dec. 14, 2023.

"Although the level of new and existing home inventories has increased from historically low levels, the supply of homes at affordable price points is generally still limited, and demographics supporting housing demand remain favorable," said Executive Chairman David Auld.

"Despite continued affordability challenges and competitive market conditions, incentives such as mortgage rate buydowns have helped to address affordability and spur demand," Auld said.

This is breaking news. Check back for updates.

-Tomi Kilgore

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January 21, 2025 07:02 ET (12:02 GMT)

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