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Meritage Homes posts Q2 2026 results and shifts toward move-up buyers
The homebuilder expects about one-third of future business to come from first-time move-up customers starting around 2028, as it cites more structural affordability pressure for entry-level buyers.
HousingWire reports that Meritage Homes exceeded expectations in Q2 2026, posting adjusted earnings per share of $1.42 alongside solid execution, including lower direct construction costs and reduced spec inventory.
The outlet said demand weakened, with net orders down 9%, even as operational performance remained a positive. It also noted that Meritage continued a pattern this earnings season where gross margin outperformed expectations among large public homebuilders.
Beyond the quarter, HousingWire reported that management signaled a gradual long-term growth pivot toward first-time move-up buyers. The company expects roughly one-third of its future business to serve that customer segment starting around 2028 and beyond.
HousingWire added that the strategic shift reflects what it called a broader view that affordability challenges for entry-level buyers are more structural than cyclical, prompting changes across land acquisition, product design, construction processes, and customer segmentation.