Susan McLarney

Susan McLarney asked about notable trends in design studio spend, especially with earlier spec sales, and their implications for future deliveries and margins. She also inquired about balancing cost reductions with the ability to ramp up the business as market conditions improve.

Answer

Executive Vice President Karl Mistry stated that design studio upgrades as a percentage of home price have remained remarkably consistent over 20+ years, with improved professionalism and margin over time. He explained that the company constantly optimizes for efficiency, with capacity in the existing G&A team to support higher revenue, while field personnel can be scaled up as absorption rates increase.