Not an LGIH-specific article, but one on new home building in the US in general, and the Texas market in particular.
I know in the past, when LGIH was first starting to be discussed on this board, there were many concerns that with the oil industry downturn, that Houston (and Texas in general), would be hit hard on the homebuilding front and LGIH would suffer because of this. Well this article seems to put that argument to rest (at least currently) as they say, “Austin, Dallas and Houston, Texas metro areas are on pace to build nearly 130,000 new homes in 2017. This figure represents more than 10% of all building permits across the US and nearly as much as 50 other large US metro areas combined.” I’m not reading any more into it than what it says, which basically confirms what we already knew from LGIH results, that LGIH markets seem to be robust, and the Texas market in particular is nothing to worry about at this time, even with the oil industry still struggling. LGIH is also much more geographically diversified than it was when we first started discussing it on this board.
Now I’m sure in typical fashion, especially with the housing market being cyclical, they will end up overbuilding at some point, and it’s that point that we will hopefully be able to see coming and potentially exiting LGIH before that happens.
Just some things to think about when it comes to a potential exit from LGIH…