United Homes Group, a homebuilder in the U.S. Southeast, has announced plans for a strategic review that includes the sale of the company, another sign of an industry under pressure.
A board committee hired Vestra Advisors and the law firm of Paul, Weiss, Rifkind, Wharton & Garrison in connection with the review, according to a company statement. United Homes said it doesn't have a timetable for a decision and won't make further public comment for now.
United Homes sold 1,431 homes last year across Georgia, North Carolina and South Carolina, ranking No. 51 among U.S. homebuilders, according to Builder magazine. It focuses on single-family homes, townhouses and duplexes for first-time and first-move-up homebuyers. Under a so-called land-light strategy, it buys developed lots from other companies.
The company, based outside Columbia, South Carolina, was formed in 2023 when privately held Great Southern Homes went public. GSH became a brand under the UHG umbrella.
Across the nation, homebuilders are struggling under the weight of elevated mortgage rates near 7% and rising prices that have stretched consumer budgets. Larger builders are offering incentives, such as mortgage-rate buydowns, to entice buyers, but unsold inventory is starting to pile up, according to Brad Hunter, head of Hunter Housing Economics, a consulting firm based in West Palm Beach, Florida.
'Smaller builders are struggling more than the larger builders," Hunter said in an interview. "As soon as mortgage rates spiked, I knew builders would be in for a hard ride."
Homebuilder confidence is falling
President Trump has eased aggressive tariff plans he announced in April, with most of the levies paused for 90 days. But some homebuyers remain leery that the tariffs will lead to even higher home prices and an economic slowdown. Meanwhile, U.S. housing starts are lackluster, and homebuilder confidence is at its lowest level since late 2023.
United Homes also announced the appointment of John G. (Jack) Micenko Jr. as CEO and Jeremy Pyle as co-chief operating officer.
Micenko succeeds interim CEO James M. (Jamie) Pirrello, who will continue to serve on the company board. Pyle will share the COO role with Shelton Twine.
“We are committed to maximizing value for all of our shareholders," said Michael Nieri, founder and executive chairman, in a statement. "We believe that now is the appropriate time to evaluate a range of potential strategic alternatives, and we are confident in Jack’s ability to lead UHG as we explore these alternatives.”
In his time as interim CEO, Pirrello "identified several initiatives aimed at bettering our product, increasing our margins, and allowing us to be a more effective production homebuilder," Nieri added.
Micenko was previously managing director at financial services firm BTIG and held similar roles at Susquehanna International Group, Lehman Brothers Holdings and Friedman Billings Ramsey Group, according to United Homes.
“Jack was an integral member of the team that brought the company to the public markets and became our president shortly after the success of that transaction," Robert Dozier, vice chair of the board, said in the statement.