M/I Homes Lifts Sales 15% With 78% Spec Mix as Gross Margin Falls to 22.0%
Updated
Updated · HousingWire · Aug 5
M/I Homes Lifts Sales 15% With 78% Spec Mix as Gross Margin Falls to 22.0%
2 articles · Updated · HousingWire · Aug 5
Summary
M/I Homes drove 15% year-over-year sales growth in Q2 2026, with 78% of sales coming from spec homes as it leaned into faster closings and market-share gains.
Gross margin fell to 22.0% from 24.7%, reflecting mortgage-rate buydowns, closing-cost aid and price incentives used to keep demand moving in a hesitant housing market.
Using its $4.4 billion 2025 revenue base, that trade-off would still lift gross profit dollars by about $26.4 million if growth holds, suggesting volume can offset thinner margins.
The strategy hinges on shortening the gap between buyer decision and move-in, reducing fallout risk from rate swings and affordability pressure that can derail longer build-to-suit sales.
An asset-light finished-lot model could further boost returns by cutting land capital needs and speeding inventory turns, helping M/I sustain spec-driven growth with less balance-sheet strain.