Business Units or Product Lines

Meritage Homes Corporation is primarily engaged in the design and construction of single-family homes across the United States, targeting the entry-level and first move-up markets. Its product lines include a variety of home models and communities designed to meet the needs of different demographics.

Business Models for Each Product Line

Meritage Homes generates revenue by selling newly constructed single-family homes. The major expense categories include land acquisition, construction costs, selling, general and administrative expenses, and interest expenses. They also gain revenue through various financing solutions provided to homebuyers via partnerships.

Future Opportunities for Growth

Opportunities for growth include expanding into new geographic markets and demographics, leveraging energy-efficient and smart home technologies to attract environmentally conscious buyers, and capitalizing on the continued demand for affordable housing in the U.S. market.

Potential Major Risks

Major risks include exposure to fluctuations in the housing market, increasing construction costs, regulatory changes impacting the construction industry, interest rate hikes affecting home affordability, and supply chain disruptions that can delay projects and increase costs.