2023 Forum for Housing Executives Recap

April 4, 2023

On March 28, Builder Advisor Group hosted its annual Forum for Housing Executives which brought together 65 of the nation's top builders and developers to discuss the housing market outlook for 2023, global macroeconomic trends, capital markets, and other relevant topics.

The interactive forum featured insightful presentations from John Burns, Fifth Third Bank Chief Economist, Jeff Korzenik, and several public builders and large land developers with perspectives on the economy, interest rates, the banking crisis, and regional housing demand trends.

Here are a few highlights from the event:

  • The Fed engaged in an unprecedented level of tightening, which has led to unintended consequences such as bank failures
  • A larger banking crisis was averted, but credit will remain tight
  • Fewer deposits mean less ability to lend and bank A&D loans will be difficult to obtain
  • Rise of private lenders and higher borrowing costs
  • A BAG/Encore affiliate has committed $200 million in acquisition & development loans in the last 3 months
  • The Fed is using the housing sector and high mortgage rates to slow the economy
  • Mortgage rates aren’t expected to come down substantially
  • The U.S. is approaching a recession, expected towards the end of 2023 with uncertainty on hard or soft landing and length
  • The 11 largest builders generated over $9.0 billion in free cash flow over the previous 12 months
  • Potential acquirers are well-capitalized for M&A with lower leverage
  • International capital continues to invest with builders and developers

Builder Advisor Group will be attending Builder 100 on May 1-3, ULI Spring Meeting on May 16-18, PCBC Leader-to-Leader on May 22-23, and JBREC’s The Summit on May 23-24. Please contact us directly to schedule a confidential meeting at any of the events. 

Best Regards,

Tony Avila

[email protected]

Zach Legge

[email protected]

Ron Yelland

[email protected]

We strive to be your advisor and trusted partner for many years to come

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