Entering 2025, NVR — one of the nation's largest homebuilders — said it was prepared for challenges driven by affordability and economic uncertainty in the new homes market.
Now, an update on the Reston, Virginia-based homebuilder’s financials shows how those difficulties are starting to come to fruition. The firm behind Ryan Homes, NVHomes and Heartland Homes reported fewer new orders and sales in the second quarter and first six months of the year.
Here’s what else their earnings report said about the first half of 2025.
There were fewer new home orders: Orders for newly constructed single-family homes, townhouses and condos from NVR brands fell 11% in the second quarter compared to the same period in 2024. In the six months ended in June, that measure also fell 11% compared to the same time last year. The average sales price of those orders was $458,100, roughly the same as a year ago during the same period.
The pace of sales slowed: Analysts at JP Morgan noted that the homebuilder saw absorption — the actual sales in each of its communities — fall 10% in the second quarter compared to the same time a year earlier.
That decline was driven by drop-offs in sales in the brand's Southeast and Mideast markets, with particular challenges in the Carolinas and Florida. Meanwhile, markets in the mid-Atlantic and Northeast saw an increase in sales.
NVR's mid-Atlantic region includes Maryland, Virginia, West Virginia, Delaware and Washington, D.C. Its Northeast market includes New Jersey and eastern Pennsylvania. The builder's Mideast market includes New York, Ohio, western Pennsylvania, Indiana and Illinois. The company's Southeast market includes North Carolina, South Carolina, Tennessee, Florida, Georgia and Kentucky.
Cancellations increased: The company reported that canceled orders were up in the second quarter compared to the same time a year earlier. This year, the cancellation rate was 17% while last year it was 13%. But that increase is within the normal range expected by the company.
There's some price pressure: NVR said it experienced some downward pressure on its profits. The company cited rising land costs as one reason for that but analysts at JP Morgan also noted the impact of higher incentive offerings for consumers.
