Part 6/9:
Regional Disparities and Future Risks
As this crisis unfolds, it's essential to acknowledge that the housing downturn isn't uniform across the country, though it is spreading rapidly, with states like Florida and Texas facing significant threats. DR Horton, for example, derives nearly half its revenue from these states—raising concerns about the impact on its operations should the downturn deepen.
Moreover, many buyers in builder communities are relying on low down payment mortgages (average as low as 12% with FHA options around 3% to 5%), creating potential risks for financial instability if prices decline further. Homeowners in these communities could soon find themselves underwater on their mortgages.