Weekly Real Estate News
Two publicly traded homebuilders reported steep declines in third-quarter profits and lower average selling prices Wednesday, offering fresh evidence of pressure on new-home margins even as builders continue using incentives and product changes to reach buyers.
Century Communities said net income declined 66.3% from a year earlier to $12.6 million in the quarter ended September 30, 2026. Green Brick Partners reported net income attributable to the company of approximately $59 million, down from $78 million a year earlier.
Century: lower selling prices and margin pressure
Century Communities reported revenue of $864.5 million and delivered 2,442 homes. Its average selling price on deliveries fell about 10.2% to $345,000. Homebuilding gross margin declined to 15%, including inventory impairment charges.
Management reported 2,284 net new-home contracts and a record community count of 343. The company also revised its full-year home-delivery expectations as demand and pricing remained under pressure.
Green Brick: incentives climb
Green Brick said its average selling price on delivered homes declined approximately 12.1% year over year. Homebuilding gross margin fell to 28% from 32.1%, while incentives on new orders reached approximately 11%.
Despite those concessions, the builder reported 926 net new-home orders, up 3% from the prior-year quarter. The company operates primarily in Texas and other selected markets, so its performance should not be mistaken for a national home-price index.
What buyers and lenders should watch
Average selling price is affected by home size, location, community mix and the share of lower-priced models delivered. A double-digit drop in the average selling price does not necessarily mean the same house lost that much value. Incentives may also take the form of mortgage-rate buydowns or closing-cost assistance rather than a lower contract price.
Taken together, the results point to builders balancing sales pace against profitability. They also reinforce the importance of comparing net pricing and financing incentives when assessing new-home affordability.
Sources: Century Communities investor relations, October 28 earnings release and Form 8-K; Green Brick Partners investor relations, October 28 earnings release and Form 8-K.
