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Partner Interview
Published December 19, 2025

LGI Homes: From Volume Starter Homes to Margin-Driven Upgrades

Executive Bio

Former VP of Sales at LGI Homes

Summary

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Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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By that point, they had already slowed down. They had a historical target of six closings per community per month, and by then, they were underperforming. What did you notice about how the organization began to adapt to this challenge, or what were you hearing about their strategies to address it?

The company has always been built on volume and affordability. We aimed to be the affordable alternative to renting, building the most affordable homes to help people, particularly first-time home buyers, get into a home. This was the mindset until about two years ago. Before I left, there was a shift. Initially, we underwrote six homes per community, which was generally the public statement. However, as costs began to escalate and interest rates rose, the strategy shifted. Instead of building less expensive homes to maintain affordability, the focus moved to adding more features and selling fewer homes at higher profit margins.

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