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Ashton Woods rejects volume at any cost as margins fall

The homebuilder reported Q1 2027 gross margin slipping to 22.7% while net new orders dropped 6.7%, citing affordability pressure and higher land costs.

Reported · Written up by our desk · Industry

HousingWire reports that Ashton Woods said it will not pursue sales volume “at any cost” as affordability pressures build and returns come under strain.

In its Q1 2027 results, the company said net new orders fell 6.7% and its gross margin slid to 22.7%, with average selling price down 3.6% to $346,000.

During a Q1 2027 earnings call, executives indicated they would prioritize protecting profitability over buying market share, while also acknowledging margins are likely to tighten further in the near term.

Management pointed to multiple headwinds, including buyers growing hesitant and competition from the resale market, along with land sellers remaining unwilling to negotiate prices to reflect current mortgage and market conditions.

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