Taylor Morrison CEO: Solving home affordability requires collaboration among stakeholders

Guidance and Market Conditions - Taylor Morrison modestly revised its 2025 closing guidance downward to a midpoint of 12,900 units, a reduction of approximately 100 units or about 1% [1][2] - The company maintained its margin guidance despite a choppy market environment, indicating confidence in pricing strategies in some areas [2] - Mortgage applications have decreased for four consecutive weeks, even with the 30-year fixed mortgage rate in the 63% range, suggesting a potential lag before the market responds to easier conditions [3] - Interest rates have decreased from nearly 7% a couple of months ago to just over 6%, which is expected to positively influence consumer confidence and buying activity [5] Affordability and Housing Supply - The industry is focused on delivering homes at prices affordable for first-time buyers, while macro factors significantly influence approximately 70% of the business [4] - Discussions with the administration are centered on addressing housing shortages and improving affordability, acknowledging the need for collaboration among stakeholders [7][8] - Builders are managing excess inventory thoughtfully, recognizing that the affordability issue requires a comprehensive solution involving multiple parties [8] - The industry is actively working to move inventory responsibly and as quickly as possible, despite mixed data on the number of lots owned and controlled, some of which are not yet entitled [10][11] Government Relations and Industry Challenges - The industry is engaging in productive conversations with the administration to address housing shortages and affordability [7] - Builders are working to balance delivering homes to consumers with pricing considerations [7] - The industry represents a relatively small part of the entire housing ecosystem, highlighting the complexity of the affordability issue [9] - The industry welcomes the administration's prioritization of housing affordability and is confident in making progress and creating new opportunities [11]