M/I Homes raised lot purchases 17% to $135 million as profit fell
Robert Schottenstein’s company paid more for land and lots, spent less developing them and carried more unsold homes, which gives lot sellers and buyers numbers to work with.
By Katia Clara · · 3 min read
M/I Homes spent $135.2 million buying land and lots in the third quarter, up from $115.4 million a year earlier, while it cut development spending to $154.4 million from $181.3 million [1]. Net income fell to $66.6 million from $106.5 million [1].
CEO Robert Schottenstein said the company is “well positioned to manage through this current cycle” [1].
M/I bought more lots and spent less developing them
We calculate that purchases rose about 17% and development spending fell about 15% from a year earlier [1]. Through nine months, land and lot purchases totaled $345.5 million and development $413.5 million, both a little below 2025 [1].
The lot count fell while the community count rose
M/I controlled 48,934 lots at Sept. 30, down from 50,625 a year earlier, with 23,425 owned and 25,509 under contract [1]. It was selling from 246 communities, up from 233 [1].
Land purchase deposits were $78.4 million at Sept. 30, up from $74.5 million at the end of 2025 [2]. By our math that is about $3,070 for each lot under contract [1][2].
Prices fell and the number of unsold homes rose
Homes under construction without a buyer rose to 3,242, carried at $763.0 million, from 2,779 at the end of 2025 [2]. M/I bought back $50 million of stock in the quarter and $150.2 million through September [1][2].
| M/I Homes, Q3 | 2025 | 2026 |
|---|---|---|
| Homes delivered | 2,296 | 2,241 |
| New contracts | 1,908 | 1,861 |
| Cancellation rate | 12% | 12% |
| Average closing price | $477,000 | $460,000 |
| Backlog, homes | 2,189 | 2,046 |
| Average price in backlog | $553,000 | $539,000 |
| Homebuilding debt to capital | 18% | 18% |
How to use this
For land and lot sellers
- Pitch finished or nearly finished lots to M/I. It raised land and lot purchases about 17% in the quarter while cutting development spending about 15% [1], which suggests more of its money is going to land that needs less work.
- Ask for a deposit above M/I’s average. We calculate its deposits at about $3,070 per lot under contract [1][2], so on a 100-lot deal a $5,000-per-lot deposit would put $500,000 of the builder’s money at risk if it walks away from the contract.
For buyers of new homes
- Ask the sales office for the list of homes under construction without a buyer. M/I had 3,242 of them at Sept. 30 [2], and the builder pays to carry each one until it closes.
- Use the backlog price as a reference point. Homes in M/I’s backlog averaged $539,000, down from $553,000 a year earlier [1], so ask what has changed on the home you are looking at.
For investors and lenders
- Track the balance sheet next to the buybacks. Homebuilding debt was 18% of capital, cash was about $621 million and the $900 million credit line was undrawn at Sept. 30 [1].
- Watch the profit trend against the land spend. Pre-tax income fell 38% to $86.9 million, including $4.7 million of inventory charges [1].
This is market commentary, not investment advice.
Sources
- [1]M/I Homes, Inc., M/I Homes reports 2026 third quarter results (SEC Form 8-K, Exhibit 99.1), Oct 21, 2026.
- [2]M/I Homes, Inc., Quarterly report for the period ended Sept. 30, 2026 (SEC Form 10-Q), Oct 23, 2026.
