Homebuilder layoffs rise—especially in Texas and Florida

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As unsold completed new-build inventory piles up and builders see their pricing power decreased—particularly in Sun Belt markets like Austin, Tampa, and Jacksonville—more homebuilders are turning to layoffs to avoid a larger margin compression. Many builders are trimming corporate staff headcounts a little and scaling back on spec construction in areas where months of supply has gotten too high for their liking.

Look no further than a recent John Burns Research and Consulting survey, which found that 63% of U.S. homebuilders said their local peers had recently conducted layoffs, while only 14% reported no recent layoffs among peers.

The numbers were even more striking in k