Why Would the LARGEST Home Builder in America Do This? (D.R. Horton)
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- Опубліковано 18 січ 2023
- D.R. Horton has made a bold move in the struggling housing market of 2023 - they're pulling their homes off the market and trying to rent them out.
But completed homes still sit empty, and 55 more are under construction, ready to flood this rental market.
You're going to hear more reports about home builders switching from selling to renting...
This will NOT stop the 2023 housing crash in America.
Instead, it's going to cause rents to drop even further, and homebuyer demand will decrease even more across America.
Do you think D.R. Horton will end up trying to sell these homes again?
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Do NOT rent or buy from corporations!
since individual landlords have either been demonized or financially ruined when the government allowed people to live in their units rent free for years, corporations that can weather those storms will be all that's left. Enjoy :-)
Then? There's not enough apartments help by ppl to rent out to others. Where r we gonna live? Millions of us 😐
@@divyasasidharan2960 Then who will they rent from? LOL "CORPORATION BAD!!! HURRRRR!!!!! "
Buy a tent and go to San Francisco. See you there.
@@meow-mi333 or chicago, those parks offer a great view
Corporations will seek government bailouts just like 2008.
yeah right - banks were bailed out and paid it all back with interest - the Fed made a nice profit. Banks are healthy now so that is impossible
They will get them. Its the same little group running D.C. Doling out that fed money is their job. It benefits their homeland. They are gonna need us to pay for that Ben Gurion canal.
Investors trying to cash in on homes that are supposed to be folks shelters is a crime to humanity.
Here in GA. I hate Dr. Horton's house. Their housing prices are ridiculously high, but their homes use very cheap materials for kitchen cabinets and bathrooms, no fireplaces, no fan in living room, just nothing to see in their homes.
Everything in GA is ridiculously expensive right now :(
They are made with material defects !!!They built them too quickly!!!
"Hey let us rent for the same monthly payment that our would be buyers are unable to afford!"
Precisely! What are they thinking?
... as they move in, stop paying rent, and trash the place.
Exactly
The stupidity is unreal
If the mortgage and rent are the same price, the rent is much cheaper because you don't have to worry about maintenance and upkeep.
Horton is all over my area too in WNC. People have been documenting the terrible build quality, I.E. bad foundations, open wall seams, etc.
There is one development not far from me that is a straight shot of land, one cul de sac street off the main road, that was cleared well over a year ago. The street got paved, lots were marked, maybe 40 altogether, then construction abruptly stopped.
Months went by, then all the contractors and equipment disappeared. The land has been sitting abandoned now for at least 6 months. But the DR Horton $400k Homes for sale sign is still up. And they call these "affordable."
This needs to be stopped. There is a housing crisis because it was manufactured.
KB Homes are sued in Idaho for building garbage homes, I owned a Hubble home, loved the floor plan, garbage build. Their HOAs were the fibal deal breaker. The ppl that bought the dump for 500k are already upside down by 60k in 6 months!!
Yea, im an electrical contractor i went to see one of their homes as a potential buyer it looked like the shoddy corporation couldn't help saving a few bucks and did everything as cheaply as possible. Id rather live in a house of Legos.
Bingo!
Devastating that anyone would try to profit off of hardworking people that just wanted a home for their kids. These types of companies ruin communities. For that, they should be shut down.
They're scrambling in the board room offices trying to figure out what to do. Nothing else to do but take a loss.
Well they get what they get..lots of good tenants who pay their bills and have good credit scores..they just don't meet the rent guidelines..
@@traceybiles2061DR Horton sells to anybody that can get government money to pay for the house. The houses are mainly crappy houses and the bastards got approval to build a crappy subdivision right across the street from my house. I've been in the housing industry all my life. Grandfather and father opened a window and door shop right before my oldest brother was born. DR Horton mainly builds shitty houses and they only get approval because they pay the government officials.
Noticed a rent sign went from $1200 to $950 in about two weeks in N. Las Vegas.
Home or apartment ?
@@bbustin1747 Apartment.
Really good to know is there that many available
Wow didn't know homes were going so cheap there. Paying $3500 in NC right now!
North Las Vegas is pretty bad though. I haven't seen rents budge at all in San Diego.
It’s awesome that you’re on the ground documenting this directly . I’ll never forget the last recession. Many neighborhoods in my surrounding area sat unfinished for YEARS. I’d visit friends and half of their neighborhood was empty lots with construction materials still there. I’m feeling like something similar is coming with all of these neighborhoods currently under construction.
Where are you located? That happened here in SW Florida. Some buildings are still shells. Some developments had roads and infrastructure put in, but never became houses - fifty years ago. We still have tons of building going on here. Thousands of houses and land clearing. It’s going to be crazy when everything screeches to a halt...again.
Yep I bought several houses on 08-09. Sold them for 6x last year. Thanks millineneals…
This will happen in suburbs and exhurbs crashing home values outside central cities. City properties will be fine as people flee to quality. Pity the suburbs
I just moved from phoenix. They dropped my rent by $50 a month if i stayed. I never seen that before.
A good tenant is worth retaining even if the owner has to get less rent. Dealing with bad/nonpaying tenants is a nightmare and can undo years of hard work.
I watched my in-laws deal for years with several rental homes and between repairs/renovations/late or no payments they got nowhere. Hubby decided against investing in a duplex (to live in one and rent the other) for this very reason.
Lol I wish we had that ours has doubled since covid n we couldn't move out due to health reasons
$50 is nothing compared to how much they raised it.
There are so many places to rent in Phoenix already... Rental market is collapsing
Flinch and hold out for more.
I’m in Dallas. I’m seeing landlords flipping rent prices up and down, with houses staying on the market when too high. My landlady is a piece of work. I will leave at the end of May. I hope prices have crashed by then.
I live in the area as well and highly recommend Smart City locating. They are great at finding you deals.
Too soon.
I live in Dallas as well. My wife runs an apt complex. She says the owners are gonna lower rents after raising them the past 4 years. They also smell a big recession and will stop all major remodeling spending and are tightening up budgets.
@@brejaimecastillo8851 you have good taste
I work in property management and live in one of the locations in the same city. This stupid company went up on my rent almost $200/month and I work here! I’m moving and already started looking for a new job. F this place!!
I notice that in my area. The house for sale sits on the market for 2 months and then the sellers cannot get near what they want since they are underwater, so they put them up for lease. Usually not a good sign for the neighborhood since renters do not have the same investment in keeping the house and neighborhood nice like owners do.
It's going to get spicy on YT in 2023 🍿
I see a huge shift happening or just the baby steps of one at least
Even spicier now with the new airbnb laws in NY.
I agree, the greedy builders and corporate investment rental company's are going to cause the housing crash.
Impending doom for the housing market, greed has gotten the worse of them.
The greed. Not telling what quality of the house itself
Their desperation in not having to drop prices is glorious
Huh???
As someone who went from $1375 to $2000 this last summer as a rent increase...bring it on.
Renting and buying has gotten insane. The greed factor has created so much homelessness.
People need to bankrupt these companies.
They will go bankrupt on their own.
That's exactly where they're heading with this pitiful trend so they're doing us a favor by going down the drain.
So they shouldn’t build houses ? What’s your point
why? we need homebuilders.
Nah we need to secomodify housing.
Everyones going belly up. Short sales, foreclosures, and tarp money is next.
Oh god, please not another corporate bailout... I will lose my mind!
I saw that on my apartment complex website a one bedroom went from 1550 to 1299* (*Selected Units) Still though, there are loads of empty units.
Some places don't even have running water, because no consideration was put into building many places but y'all are still paying 2,000 minimum-5,000 and going it's out of this world to me.
Love how you are out in the field bringing us real time events and not charts and graphs. Nothing wrong with graphs, but actually seeing what's going on live on location, makes it real that real housing trouble is coming. Love the "lives"reports.
DR Horton is going to find out real quick that renters love to move in and then immediately stop paying rent. I know this first hand from being a FORMER landlord.
Why didn't you require seeing bank balance or pay stubs? Usually hearing about this happening to greedy landlords that jump on the first person that will pay ridiculously high rent.
@@koyotecow7102 it usually didn’t matter. They would show everything you’d think you needed to see.
@@johnlopez4089 Do you look at Fico scores? As a self employed person, I have to show bank statements to show deposits.
Lol bruh you spitting facts! Put that on a bumper sticker.
Sucks, renter for 17 years now (moved out very young), pay every single bill on time, never once had a fee for damage, I improve every place, but landlords never ever fix anything.
This is so true in my area. Everything expires and becomes rentals. Crazy times.
As a real estate broker, the crash is here. It's like a roller coaster we are just now looking at the drop. Hold on tight!
Time for all of us poor people to grab our popcorn and watch greedy rich folks squirm in their seats when they start bleeding money. Time for you to join the 99%. Come join us, and understand what it's like to worry about how to put food on the table and pay your bills.
@Dhalin I've been homeless child of america and a state baby. I worked my way as a foster kid to where I am. I think I'd rather bring up some of the 99% rather than go down with the 1%. I will have some popcorn though 😋 😉 😜
@@mickaylafatovic The problem is, very few people think this way. The rich want to get richer and simply don't care that the poor are getting poorer. Their little bubble is not sustainable and we're watching it pop in ultra slow motion.
So, if you want to "raise up some of the 99%", I assume that means that you are selling housing (or rentals) for cheap purely out of a philanthropic heart? Not saying you gotta sell at loss, but I assume you are going lower than your competition by significant margins?
@@mickaylafatovic Rich will stay rich - don't hold our breath
Even with the crash, interest rates are way too expensive and insurance. I probably dig up a hole and call it home.
We need rents to come down
no one should be renting ANY OF EM .. let them sit and rot
'Rotting Flat'.
Boycott high prices!!
Southern AZ here...we have noticed a huge uptick in private sellers converting their listings to rentals over the past month or two.
Thank you for bringing this out in the open! DR Horton is going to find out real fast how difficult it is to be a landlord..
It's very difficult to be a landlord specially in Los Angeles. You don't even really have to pay rent. And in Oakland I still think they haven't paid rent. And it's going off 4 years. Can you still have to pay taxes maintenance? People don't realize what's going on.
If you have money. It's a field day.
I rent from a private landlord, not a REIT Conglomerate. I fix or replace my own appliances. My landlord allowed me to remodel. Been here since 2008
I pay $500 per month, 425 Sq
Ft.
Y'all gotta give up them corporate landlords.
Good for you, I'm a small time. Landlord with 2 units and I've been taken advantage of greatly. Which is forcing me to sell to a corporation.
Jeez, you live in a closet?
You are the top ten percent of renters.
Im fine with all the landlords getting cooked. They have been ripping us off for years
@@_outofphase5480 talking more about corporate landlords. We could always build a home.
These are not land lords lol...its investment businesses.
@@farmerchick3040 corporate overloards
TRUTH
@@_outofphase5480 Did you vote blue? Yes? Then shut up and pay your taxes.
Corrupt industry.
Florida especially I can’t wait to see all down the DRAIn
Keep exposing them. Here in Miami you see a lot of brand new apartments for sale/rent that just sit empty because developers are greedy and built these “luxury” units with dirty money, so they don’t care if it goes to waste.
he has zero impact on anything. He is UA-camr that rents --
There is an entire neighborhood of these going up near an Amazon distro facility. It's about 100 homes. I guess the thought is their catering to a younger, more transient market. ... Risky.
So, they are looking for people with 100k in college loans or with no good jobs with no cash... Definitely risky.
If the rent is finally going down, that's supposed to be good news for most Americans. Since, the majority of us are renters.
No
@@NicholasWHaley7 where did you get that?
@@NicholasWHaley7 it's 50/50 on most major cities on points2home and state data, I don't know where you get your data.
@@NicholasWHaley7 63% of Americans live paycheck to paycheck, yet the top 1% have never been richer then anytime in American history. Economists who can’t agree on anything do agree we’re living in the second gilded age that started with Reagans radical tax cuts. The top 20% of Americans now own 90% of our wealth while the bottom 50% own 0.8%. The greatest wealth gap in American history. The average American can only afford 150,000 dollar home. The average price is currently over 400,000! Yeah for lobbying and unfettered capitalism!
if you are working through a mortgage you are not the owner of that property you are the care taker and responsible party. only if you pay off that mortgage do you become a fullflesh owner so if you count the number of folks that really own the number is probably lower than 25%
You’re absolutely cheering me up! Thank you 🙏
he is a UA-camr that rents - he isn't a fortune teller -- what he says doesn't matter
“You will own nothing and be happy”
false narrative from a decade ago WEF forum - it's a think tank that was asking questions. The own nothing was referring to personal items NOT private property - which would never happen. You can rent things and still be happy. Quit being a sheep and listening to right-wing garbage
If you have good tenants, it's ok. With bad tenants, they don't pay rent, you lose $$ and headaches to evict them, and when they move out, the new houses face disaster
Didn't everyone know interest rates going from 3% to 7% in 1 year.....was going to cause massive drama.
Thank you You're the only one that really gets it. And you explain it so well. I've been watching your videos for the past two and a half years. I know that you took a little time off but I'm sure glad you're back. Big admirer and follower. Thank you so much for your content and information. You're 100% right.
I also think some of these builders are trying to decrease available inventory for sale.
The sad thing is if they rent them then sell them they're gonna take a lose because it's not a brand new home.😐
I live in a brand new 4 story apartment complex in Riverside California. My unit is one bedroom. Rent was originally $2,500. It's now $3,000. Ridiculous.
They are doing that ALL over south florida. I noticed this 6 months ago. I think the plan is Airbnb them too
The windstorm insurance gonna blow all that away. Not even a hurricane lol
The saturation of Airbnb in most places is off the charts. Too many of them 🙃
What the naysayers don't seem to grasp is... We have only one kind of money to pay debts "public and private." We have, at the current time, only Federal Reserve fiat to pay with. Our taxes must be paid in these notes. Meaning that even though gold and silver are real money, we have to deal in and pay and get paid with Federal Reserve notes. That being said, the dollar is universal, we buy homes with the dollar, we pay our rents with the dollar, with the same dollars we buy gas and groceries, we buy movie tickets and baseball equipment and clothing. There is no one kind of money just for rent and another kind of money just for purchasing a home. It's universal. Doesn't matter what D.R. Horton does, you can build homes and call them "peaches" if there's no money left there's no money left, it's been gobbled up by purchasing other of life's necessities and not to mention the inflation tax. If they want rental tenants they're going to have to give the first month or two for free depending on the area, and even then if they don't want to lose money on the sale of a reduced price house they're going to lose it on the lowered rent they will have to charge.
We use gold and metal and rocks rarely. That is not worth more than food, ammo
@@vanderumd11 Well it depends, at what point is gold and silver worth something (again) obviously in the middle of mayhem and chaos, food, water and ammo are the most valuable commodity. As things (hopefully) come back online and the rebuilding phase kicks in, gold and silver will be there as a store of value and a medium of exchange, as they have been for millenia.
This is great news. Rents are crazy high. Finding good tenants for rental properties is tough and will probably get tougher. The rentals probably won't make money and will just be sold. Of course, that is after the owners replace the wiring and anything else that can be stolen.
Shhhh...45 year old duplexes in run down neighborhoods in Chattanooga TN are going for that much. A one bedroom in a typical apt complex is $1500-1800. Insane.
Sorry, the rent's going to be too high when the value drops in half. Then they'll be dumping all of them at the same time the air bnb people are dumping. Talk about a crash. Just wait.
I was telling realtors about this 2 years ago and they all said that I didn't know what I was talking about. They still deny it. Gotta keep the charade going
Hadn’t thought about the Air BNB factor - interesting.
$2500 a month for a townhouse. Lol.
In NY out in the suburbs it’s $3,500 for a 2 bdrm
Good, the future purchasers can now check the leach fields and the flood plains!
You are one hundred per cent correct. Especially, for Florida!
I doubled down on my DHI shorts yesterday. This rally has been silly. Time for their stock to dump.
Except the stock market often does not reflect the real economy. In fact news like this would make the stock price go up. Investors love greed
@@jeffspicoli2742 I make my trades based on price action not news. Price action on larger time frames like the weekly looks good to me here for shorts. When fundamentals concur, it’s just icing on the cake.
Looks like old public housing in Atlanta before they tore them all down. Horton builds slums and should get burned.
Just keep in mind, the current renter doesn't get the coming rent discounts, the next tenant will end up with your earned discount, because landlords are stubborn and will runoff a good renter only to realize the new lower price trend and give the lowered rent to the next tenant as house values and rents drop, all because landlords have too much pride to face the new lower priced rental market and simply pass those savings on to you, the current tenant.
Agreed
Dude, that's not even clean English. Try again.
They can’t accept that prices are not continuing to go parabolic. They think if they just wait for the fed pivot then they can resume selling these homes at high prices. Or maybe they are thinking to get into the rental business since everyone bought their homes last year to put in rent. Whatever it is, it’s not part of their core business model and it’s a sign of the company faltering without a clear vision. They make money from making and selling homes. If the prices are falling then find a way to make homes more cost effectively and sell them for less. I have not seen any major builder look at making 3D printed homes or self sustaining homes that put money back in the pockets of home owners.
I own 3 construction companies. I can't begin to tell you how expensive raw materials are.
Lower the prices? To what?
If it cost 270k to build a 1500 square foot house on 1 acre of land, that's $180 square foot.
No that’s not true. They are waiting for the rates to go down so people can afford to buy. That’s what happened in 2008. Sellers just waited. 😅
They need to lower prices. Eventually the last to get in get crushed or take a huge loss. D.R. is big enough to take the loss but they're doing a crappy move by destroying a different market.
Truth, it's happening in San Antonio, Texas.
They couldn't pay me to live in their ecoside hellscape!
When I was home hunting a few years ago, I was told by 2 people not to buy a Horton home.
I've heard there are multiple issues and shawdy work.
That was only 2 people, but word of mouth is powerful.
This is awesome news as this will help the country. We have a need for rentals. The homeless will now find places to rent, no more excuses!
Now they can live with the shit they build. Good for them.
.
People can't afford the high rent. These people are going to go bankrupt.
They are trying to do that here in Reno and they still cant.
In Pensacola, they're popping up like "Popcorn", completed in only a few weeks.
I saw this trend last year in my area when people stopped buying but their rent is outrageous
Great insights on this new trend in housing! Thanks!
If I could afford that rental price, why wouldn’t I just buy instead?
That’s exactly what happened in the UK during the 80’s / 90’s housing crash. People were desperate to get out and flooding the rental market unable to even rent them. People were eventually just handing their keys back & walking away.
Your on-site analysis is unique, thank you again
Look at homes for rent in charlotte nc, 4 and 5 bedrooms, brand new for 2k. Wow!!!!!
DR Horton is gambling it’s not only a quick recession but also the Fed will pivot and cut rates. More than likely, DR Horton will be lucky to get 50 cents on the dollar for these homes 2 years from now.
Same things in NYC. I saw brand new two family asking for 1.5 million, on the market sitting for months. Now I heard seller looking to rent hoping once rate go down they will find some looser to overpay for the house. 😂😂😂. Once it used with tenant, it won’t have the tag of “brand new”. I doubt they can sell even 1.2 million.
You're right, they should cut their losses and sell it cuz rental market is not looking good with current apartments and rental.
Just say NO!
Realtor fancy code word for housing crash:
Market Correction
Facts! Always watch for the fancy words. Its there way of giving things a soft landing.
When it comes to stocks, they call 10% down a correction and 20% a bear market. In relation, I think a lot of investors thought the declines in home prices wouldn't dare be more than 10%, or what they would refer to as "just a minor correction". Obviously handset is 2020 and they were wrong.
No its "market is cooling."
Nick changed the word “crash” to “correction” in his prediction of northeast region.
He doesn't know anything - crash gets clicks and helps him make a few bucks.
Horton signed a contract to build x amount of homes. Horton must honor the contract.
Same thing happened in Orlando Naval Station. A contract with the Navy for additional barracks. Then the Navy either sold the base or gave the property away. Now, that same property is a very expensive housing development. I think the Navy messed up.
I am ready to buy and I will pay cash, but now I am waiting out this ridiculous pricing. I fully own my current house and happy to stay here until then.
They don't care until the bank takes them back. Then they can't afford their own home
I just rented a home from DR Horton in a very similar community for $1745 - three bedroom, two bath, brand new. I love it.
Which city?
@@atiwary temple, tx.
It was $1900 or so a few months ago.
@@kitsuneneko2567 Temple is far from the city of Austin though, rents near Austin are not going to be in that price range
@@ganjatakla of course it won't- I never maintained it would. Why do you think I'm moving to temple? It's still an example of what he's talking about.
McKinney Homes is building 80 homes across the street from me. Talked to the foreman…all for rent, none for sale
Condos I've been keeping my eye on in Vegas the rent was 2,150 and has gone down in the last two months to 1,950 eviction in Vegas due to Pandemic rental are no longer protected....
We need to NOT rent from these people…don’t become Serfs.
You will own nothing....You will be happy......
"The best slave is the one who doesn't know he's a slave....."...Charles Darwn
I've seen homes around here, existing homes, that where we live... Have no business being rentals. These homes are too nice to be rentals. But what's happening is, whoever bought them during the last couple years at some point decided they didn't want to live here anymore. So instead of selling the house, they're trying to rent it out. However, all of these homes are sitting for months and months and months with no tenants. The asking rents keep getting slashed over and over and still no takers. These homes are obviously owned by people from out of the area who just don't get it. People here just simply aren't going to shell out a premium price to rent a luxury hoise. It just doesn't happen here. Virtually everyone here sees that as nothing but a giant waste of money. Yet these houses sit her for literally almost a year with no one renting and the asking price dropping every month. I wonder what it would take for this obvious out of towners to give it up and sell.
Where?
@@sharpatite4684 midwest metro area (suburbs)
I remember when I owned a house. I could not afford it any more, but thought others could. I sold it though. Renters are used to a certain price range. It is so much cheaper to rent.
Great Job, Mate!
I bet they are trying to rent it for more than the actual monthly payment.
Yipeee!!!! Waiting and ready!!!!!
It's important for a business, ANY business, to know that a reputation, once lost, is very difficult to recover.
We saw this after 2008 👍🏼
Expected more of the same patterns from that timeframe 👍🏼
Most Dr Horton neighborhoods are investor owned rentals anyway.
Most people will not be able to afford this. This country is so indifferent to the largest populace.
Isn't it like 30k a year for the average American? might be higher but i know that more than 2k is insane.
I noticed the same thing happening with Rocklyn Homes. They’ve started building subdivisions of rentals.
The main reason they think they can ask that much for rent is because a lot of apartments are asking that much. Especially luxury apartments. I was a temp Maintenance guy at one in Nockatee and they were asking 1500 to 2000 for 1 bedroom, 2000 to 2500 for 2 bedroom, and 2500 to 3000 for 3 bedrooms. The other apartment I worked at was asking 1000 to 1600 for 1950s built apartments. They were not very good and as usual old buildings with bugs, sewage issues and lots of issues with the old appliances.
The house down the street from me was trying to rent at 1852 a month, came down to 1552 within a couple of months. Not sure if they sold it or someone actually rented it, but someone moved in shortly after the rent sign was taken down and they had a huge viewing.
This is awesomely fantastic news for the US economy!
This is giving me “2008” vibes. I remember when entire subdivisions were abandoned and then bulldozed!
one of the biggest problem with real estate it's the capital gains tax
Love to hear it ❤️