DR Horton and Pulte build heavily in HOA communities because they pack more homes on less land. A new 4-bedroom costs about $2,500 a month with financing, taxes, and insurance. HOA communities let builders hit 500 homes in a compact area, giving them scale advantages unavailable in markets like Boston or California.
If I'm a builder and I offer you 4% on $100,000, that's $400 a month. And at 400, 4 of those, that's $1,600 plus taxes plus insurance. I'm selling you a house at $2,500 out the door, brand new, 4-bed, 2-bathrooms, brand new, right? That will come with a lower insurance cost that people complain about, right? That may come with a little bit higher taxes, but the builders in Florida and Texas, the two biggest builders, DR Horton and Pulte, are building. They're totally dominating. And I'm going to tell people why. Because what they build within, and people in Boston or California will not understand this, but they go to the counties and they say, look, we're going to do these communities. They're called HOA communities. And the reason why they build in these communities is because they can get built on less land. Now, the land you would get is still pretty good, but it's less than maybe the requirement outside of the communities. So they can build, you know, 500 homes, right? In an insane amount of time, they can build 500 if they wanted to.
