There's no doubt about it: Homebuilders have exceeded expectations this year. Take, for example, KB Home, which recorded net home sales of 3,936 in the three-month period ending on May 31. This performance was in line with the 3,914 homes it sold during the same three-month window in 2022—a period that was also before mortgage rates surpassed 5.5%.
In a recent interview with Fortune, KB Home CEO Jeffrey Mezger expressed his optimism about the homebuilding industry's prospects, attributing it to the chronic shortage of existing and resale housing inventory. Mezger thinks that lack of inventory spells years of opportunity for homebuilders.
