LGI Homes Shatters Records With Explosive Community Expansion Across the U.S.!

LGI Homes, a leader in the homebuilding sector focusing on entry-level housing, presented mixed results for the fourth quarter of 2024. The year was marked by heightened economic challenges, arising primarily from an unexpected rise in mortgage rates following the Federal Reserve’s policy adjustments, which exacerbated affordability issues and increased input costs due to inflation. On the positive side, LGI Homes met several strategic goals for 2024. The company reported a solid fiscal performance with full-year gross margin increase by 120 basis points, and adjusted gross margin up by 160 basis points. The company also achieved a pre-tax net income margin improvement of 70 basis points compared to the previous year. These metrics indicate effective cost management and the company’s capacity to maintain profitability despite adverse market conditions. The average sales price (ASP) for the year was over $365,000, which exceeded the initial guidance, demonstrating resilience in maintaining sales prices amid economic pressures.