Takeaways From IMN's 2026 Land and Capital Conference
Misery Loves Company. Attendance was robust at IMN’s recent Land & Homebuilding Capital Markets West conference. Our team moderated three panels over the course of two days, and observed that more than half of the attendees were builders and developers, with the remainder largely capital providers. Uncertainty persists, affordability remains constrained, land cost bases are higher, incentives remain necessary to support homebuyer demand, and homebuilding margins are unlikely to bottom before 2027. As such, the tone was subdued!
Control the Controllables. According to CEO Scott Laurie, Olson Homes is focused on “A’s in A’s”, prioritizing A-ranked floor plans in A-rated locations. Offering a different perspective, CEO Tim Terrell noted that de-spec’ing product to improve attainability is working for Drees Homes. Whether through smaller homes and lot sizes, or controlling internal headcount, builders that directly address today’s challenges are positioning themselves to grow profitably.
Protect the Balance Sheet. After several years of strong performance, many homebuilders enter this cycle with healthy balance sheets, and management teams are now focused on preserving that strength. Cycling through land positions enables a builder to reset their pipeline with today’s underwriting. In relatively stable sales environments, private builders should note that capital providers are sharpening their pencils and land developers are showing greater flexibility on terms – don’t be afraid to negotiate.
M&A Activity Remains Robust. Despite the lackluster operating environment, the M&A buyer universe remains broad, with strong interest in well-positioned builders. Geographically, Southeast and Midwest markets are most attractive, while builders serving the entry-level and move-up segments are sought after.
Large U.S. private and public builders maintain strong balance sheets and ample growth capital, supporting acquisitive growth and further consolidation
Regardless of whether the market is in a housing recession, foreign buyers are underwriting through the current conditions and focusing on long-term demand fundamentals. As a result, they remain active, competitive, and successful bidders in many M&A processes
While 2026 M&A may be more selective, high-quality sellers continue to attract compelling valuations. As Margaret Whelan recently noted in Builder Magazine:
“The best sellers are still able to sell and attract incredibly attractive valuations, especially relative to where the publics are trading. The best buyers have plenty of cash, they know where they are, where they want to be, and what they want.”
