Don’t Miss a Post. Subscribe now.

America’s Homebuilder: D.R. Horton Homes Falling Apart in Months

Homeowners say their new homes built by D.R. Horton are practically falling apart.

America’s Homebuilder

“We can laugh a little bit now, but it was horrific,” Preston said. “My wife was in tears most of the time when we were going through this.”

A 166-page inspection report from Knowles noted problems in virtually every part of the home. Missing pipes, doors installed incorrectly, insulation too thin, the structural integrity of the roof compromised, and multiple code violations were all noted within the inspection.

But Preston isn’t the only one who says they are going through this nightmare, and it’s not just in Berkeley County.

In 2021, Scott Molway and his family moved into a Summerville neighborhood with their home being built in 2019. Two months after moving in, the roof buckled.

“When they were actually putting in the shingles, they weren’t using the correct number of nails or materials,” Molway said.

The roof buckled again in February of 2023, and again in January of 2024. The most recent roofing problem came with a $17,500 price tag.

This horrible D.R Horton build quality is going to kill someone. 

https://www.tiktok.com/@lonestar_hawaiian/video/7185340132717776171?is_from_webapp=1&sender_device=pc

These stories have been going on for years. Here’s one from 2022.

Attorneys reveal results into claims of poorly designed D.R. Horton homes

Attorneys of Acadiana homeowners who are suing over their homes falling apart have released pictures of what they found.

The findings include poorly ventilated homes, mold, and high indoor humidity levels.

Baton Rouge Attorney Lance Unglesby and Lafayette Attorney Alan Haney say they found over 50 homes poorly constructed by D.R. Horton, known as American Home Builders.

Hoy Cook of Jennings says he’s a homeowner whose home was built unevenly with doors falling off.

“There were crooked walls. They worked on it for a week and came back out,” Cook explained. “It was ‘worse crook’ if that’s a word. My garage door fell off that they put in. I paid out of my pocket for a guy to come out and they put it in backward.”

Nureaka Ross of Lafayette says she almost purchased a D.R. Horton-designed home. Ross posted a Facebook video of her emotional experience.  

“It upset me to see them placing shingles directly on the wood. I was like ‘something is not right.’ You know when you know something is wrong and you just can’t put your finger on it,” Ross stated.

Doesn’t anybody research anything anymore? The biggest expense in one’s lifetime and nobody bothers to do a minimal check on the quality of these builders.

I would be ashamed to admit I worked for a company with problems like these.

Home Prices Hit New Record High

The Case-Shiller national home price index hit a new high in February. That’s the latest data. Economists don’t count this as inflation.

Case-Shiller national and 10-city indexes via St. Louis Fed, OER, CPI, and Rent from the BLS

On May 2, I noted Home Prices Hit New Record High, Don’t Worry, It’s Not Inflation

The Case-Shiller national home price index hit a new high in February. That’s the latest data. Economists don’t count this as inflation.

Somehow, I suspect D.R. Horton houses have not does as well.

Subscribe to MishTalk Email Alerts.

Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.

This post originated on MishTalk.Com

Thanks for Tuning In!

Mish

Comments to this post are now closed.

105 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
John9
John9
1 year ago

Neoliberal economics! America’s ideology since Reagan Thatcher. Ian Welsh explains: https://www.ianwelsh.net/you-cant-run-industrial-policy-or-a-war-economy-under-neoliberalism/

Counter
Counter
1 year ago

A friend of mine went to put countertops in one of these high end homebuilders homes. More expensive that DHI. He measured the cabinets and when he put the countertop on they were bowed way out. He doublechecked the measurements then looked at the cabinets. They were cheap particle board. He said the whole house was built like that with expensive hardware to make it appear expensive

Last edited 1 year ago by Counter
Joie
Joie
1 year ago
Reply to  Counter

In our home we have come to expect the ” China Syndrome” as appliances, furniture, solar lights, sewing notions, etc. all break, stop working or melt in the dryer. Today, replacing a table top ,$400+, water distiller just 20 months use – no repair available either from the Internet contacted manufacturer nor a non responsive Dealer. Throw in the ” High End” dishwasher that runs for 3 Hours and needs a 2nd go round – and yes, we keep dishes and utensils soaking until the washer is loaded. Do you suppose Biden or Obama ever ran a dishwasher?

deadbeatloser
deadbeatloser
1 year ago

that’s the inspector’s fault. A little book called the “universal Building Code” (UBC) has been around for generations, and is the standard. The UBC is not used in mexico, etc, hence big disasters with minor earthquakes.

HotTub
HotTub
1 year ago

Sounds like D.R. Horton uses Boeing mechanics to build its homes. Sheesh.

Lucas McCain
Lucas McCain
1 year ago
Reply to  HotTub

Cheap Mexican labor, but yeah.

Rjohnson
Rjohnson
1 year ago

We’re those 2×4 ceiling rafters?

Yeah right! One of us try doing an addition, etc and go to the courthouse and get slaughtered with regulations, inspections, having to get permission in the first place, etc etc etc and these connected jackasses can build grass f******* huts covered in fancy cardboard by the 1000’s, get filthy rich and get away with it for the most part.

This country is nothing else except screw them before they screw you.

HMK
HMK
1 year ago

In MI Pulte was the lost cost low quality builder. Don’t know if that has changed, althought their homes have a verly characteristic elevation with a cheaper look.

Frilton Miedman
Frilton Miedman
1 year ago

The problems described in Mish’s post above are design and material flaws.

The “illegals” and “Union workers” work off blueprints, they use materials purchased by D.R.Horton.

These workers don’t make improv decisions to not install adequate venting, nor to buy cheaper materials that aren’t mold resistant.

It’s gone from frustrating to plain sad to watch so many eagerly fault-find all but those at fault – D.R.Hortons executive suite.

This clearly illustrates how our political system is such a wreck….now send those Christians into the arena, the lions are hungry!

.
.

Last edited 1 year ago by Frilton Miedman
MelvinRich
MelvinRich
1 year ago

This reminds me of my experiences buying American cars.

Avery2
Avery2
1 year ago
Reply to  MelvinRich

Based upon the video here any car would have fell apart about 10 minutes after first start.

Frederick
Frederick
1 year ago

For a lot of builders profit is what matters most I built for 30 years in the Hamptons and never used a sheet of OSB or vinyl but my homes were quite expensive Friends had different ideas

Frilton Miedman
Frilton Miedman
1 year ago
Reply to  Frederick

I see so many opinions here, pointing fingers at workers over problems with design flaws and cheap materials.

I’m sure you know that in the case of D.R. Horton, those workers don’t design the homes, nor do they purchase the materials, excepting subcontractors like HVAC, plumbing or electrical, and in those cases, they also don’t design.

.

Bayleaf
Bayleaf
1 year ago

If as a buyer, you can’t even do the simplest of home inspections, then you have no business buying a home.

Ipso_facto
Ipso_facto
1 year ago
Reply to  Bayleaf

Pay for a professional inspection and have results corrected before completing payment.

Jojo
Jojo
1 year ago

Printed homes will solve this problem. Eliminating humans, especially unionized workers, as often as possible leads to better quality in virtually everything.

Mike2112
Mike2112
1 year ago
Reply to  Jojo

I guarantee you these weren’t union workers.

More likely the crews had quite a few illegals doing the work. And while some illegals know what they’re doing not all know what they’re doing.

J K
J K
1 year ago
Reply to  Mike2112

And lack of supervision. You got to have a boss who understands construction of homes. Duh. The problem is that the companies are publicly traded and can care less about quality. They’re rushing through the construction.

Jojo
Jojo
1 year ago
Reply to  Mike2112

Uh huh. Remember all those stories about the poor quality work union workers did/do on Ford, Chrysler and GM cars? It’s one of the reason that people turned to Japanese cars en masse.

Wisdom Seeker
Wisdom Seeker
1 year ago
Reply to  Jojo

I call BS. New manufacturing methods will not prevent low-cost vendors from selling poorly designed products built from substandard materials. Just look at food products.

Honestly the only people who ever really enforce quality standards are consumers who bother to do their due diligence.

Tempting to suggest that the rules for buying a first house should include attending some kind of “Homeowner’s Ed” class, just like Driver’s Ed (one could add Parenting too). But don’t let the teachers’ unions get into that game!

Jojo
Jojo
1 year ago
Reply to  Wisdom Seeker

True. And the solution to that is to replace ALL human workers with robots. Forward thinking companies are thinking of this now.

Tortoise
Tortoise
1 year ago

Mish, it’s ironic that you source videos from TikTok, a media platform, that Donald Trump attempted to ban in 2020. Ironic because you keep banging the drums to put this clown back into the Whitehouse.

https://en.m.wikipedia.org/wiki/Donald_Trump%E2%80%93TikTok_controversy#:~:text=On%20July%2031%2C%202020%2C%20President,the%20company%20did%20not%20comply.

You want to know why DR Horton Jones are falling apart? Because they company’s leaders follow the same business playbook of cutting corners and recklessly pursue profits at all costs. That’s the Trump way.

Everyone here needs to face reality. Biden, Trump and brainworm RFK Jr are trash. Doesn’t matter who wins in November. So let’s stop pretending that Trump is going to save the country.

Mike2112
Mike2112
1 year ago
Reply to  Tortoise

Trump’s properties aren’t falling apart.

NYC is full of them. Tall buildings made of brick and steel built by union workers.

All still standing and with all the pipes correctly installed on Day 1

HMK
HMK
1 year ago
Reply to  Tortoise

I agree but he is the lesser of 2 evils. The system if FUBB the best candidates are not in the running. Most Trump lovers don’t see his many economic doctrine flaws. I don’t get it. I do think the malicous prosection has helped gain a sympathy vote for him.

XBuild
XBuild
1 year ago

Union builders are the real hacks…guarantee these were built by union “carpenters”.

Bayleaf
Bayleaf
1 year ago
Reply to  XBuild

No, illegal aliens

Tortoise
Tortoise
1 year ago
Reply to  XBuild

DHI is a player in the low-end home market. Their builds are super simple, arguably retrograde, and visually unappealing. Low cost floor planes, no frills exterior décor, and cheap asphalt roofs. This suggests that DHI prioritizes reducing costs over quality to boost margins. That mentality would likely bleed into their contractor choices and labor skill criteria. Now, the corner cutting is coming back to bite them in the butt.

Bayleaf
Bayleaf
1 year ago
Reply to  XBuild

DEI hires

Frederick
Frederick
1 year ago
Reply to  XBuild

Union builders means they would be overpriced and never get finished,right?

Fast Eddy
Fast Eddy
1 year ago

So this is how home builders have been able to handle the raging inflation and still sell homes.

Tortoise
Tortoise
1 year ago
Reply to  Fast Eddy

My theory. There’s a shortage of skilled labor in construction. DHI has difficulty competing for the best contractors and workers. They’re sorta like the McDonald’s of residential construction and they don’t pay as well as other home builders. So DHI ends up with the least competent and unscrupulous contractors. The contractors don’t get enough money from DHI to cover costs are attract the best workers. As a result, they cut corners to stay within budget.

Joe
Joe
1 year ago

40+ years union carpenter,supt, PM….Its been well known for years that D.R. homes are crap.
Nothing here is surprising. They hire the cheapest contractors, inexperienced field supt’s try to run a project , but when the suits don’t know what they are doing and the contractors are cutting corners….good help isn’t cheap../ cheap help isn’t good.

Tortoise
Tortoise
1 year ago
Reply to  Joe

Was D.R. involved in the Chinese drywall scandal of the 2000s?

Richard F
Richard F
1 year ago

If tradesman could make a living building homes they would.
Since it still takes 7 to 8 years to learn a trade and Fed financialization does not allow for time frames of such magnitude to occur in the economy, well qualified people are few and far between.
Smaller Home builders who sell quality still produce a top notch product. But they do not compete on price as best practice Building takes time and money.

Top quality Materials are also hard to come by.

It is not going to get better without a major realignment of economic priorities. Changing back to a value based system from one based upon Debt creation is not in the cards.

If you want a nice House buy an Solid older one which can be upgraded by remodeling. Then carefully screen for the Best Contractor and allow plenty of time and money to do work.

If you are counting on local building department to insure a quality Home construction,
you are mistaken.
If you want a quality Home then find someone who actually knows how to build one. Not that many still left in Business.

JeffD
JeffD
1 year ago

Yet you can’t build your own home on your own property, because government says you don’t know what you are doing. Meanwhile, government “inspectors” individually approved each and every “building code” failure found in each and every one of the D.R. Horton home sites mentioned in this article.

Jk
Jk
1 year ago
Reply to  JeffD

I know from personal experience from doing an addition that these inspectors are lazy or ignorant.

Since2008
Since2008
1 year ago
Reply to  JeffD

In my state, we can build our own homes on our own property and even sell them to others. The thing we cannot do is plumbing work for others without a license. Additionally, there are some local jurisdictions that require license for other things such as electrical work.

Part of the problem in our culture is that people think inspectors are doing thorough inspections and ensuring them a quality home but that is just not the case. Inspector catch things and contractors correct things but it’s not 100% thorough. Thinking that inspectors ensure quality is similar to thinking the government is taking care of people with government programs.

Woodsie Guy
Woodsie Guy
1 year ago

Go on reddit and you will find all sorts of examples of this crap on the subreddits for decks, plumbing, electricians, home maintenance, etc. I had seen the referenced tik tok video above ok reddit a bit ago. Quality is crap on alot of things now. Goes to show you thar building inspection is a joke.

MPO45v2
MPO45v2
1 year ago
Reply to  Woodsie Guy

And a key driver is all the people from these trades retiring. You have experienced people leave then there is no one around to train the next generation exacerbated by no one wanting to do those jobs anymore anyway.

In the news there is a common denominator between falling apart airplanes, falling apart housing, falling apart medical care, etc and it’s LABOR DEPLETION.

Why are there shortages of drugs all of a sudden?
Why is shotty work being done on airplanes, houses, cars, etc?

The US Chamber of Commerce has reports on all of the problems, nursing is facing a huge crisis so expect huge “mistakes” killing people all over the place as the next big headlines. Bookmark this and refer to it in 18 to 24 months from now.

https://www.uschamber.com/workforce/understanding-americas-labor-shortage

Woodsie Guy
Woodsie Guy
1 year ago
Reply to  MPO45v2

No disagreements here. The local gas company has an easment for thier gas lines through my subdivision. An out of state crew was working on the lines this week. All 6 guys on the crew had varying levels of gray hair. All looked to be in thier 50s.

My dad sold his logging business and now works part time excavating for buddy who owns a saw mill. They can’t find log truck drivers. Guy had to beg one of his former drivers to come out of retirement until he could find someone permanent. My dad said that even if they do find drivers they are all old timers.

The worst is yet to come.

J K
J K
1 year ago
Reply to  Woodsie Guy

I totally agree with you. People don’t want to work. The government is to blame for this with their welfare programs and applauding bad behavior. Bad educational systems as well. Those billions spent around the world on wars, Israel, Ukraine and God knows how many countries could have been spent to develop systems for education for trades and other jobs needed in our country. Unfortunately, we will reap what we sow.

Peace
Peace
1 year ago
Reply to  MPO45v2

Its China.
China’s fault. Period.

J K
J K
1 year ago
Reply to  Peace

Your forgot the /sarc tag.

Thetenyear
Thetenyear
1 year ago

This is what happens when sales and margins come under extreme pressure due to inflation. When companies can’t raise prices they take on more risk and cut more corners in order to expand margins. This is not just a Boeing problem or a D R Horton problem. Expect to see much more of this as inflation rages on.

Peace
Peace
1 year ago
Reply to  Thetenyear

Serious inflation started only 2 years ago. Boeing problems started decades ago.
Airbus has no problems.

Last edited 1 year ago by Peace
Derecho
Derecho
1 year ago

I always spend twice as much on a great inspector so that I avoid a junk house or I am able to negotiate for further price reductions.

Avery2
Avery2
1 year ago
Blurtman
Blurtman
1 year ago

Where the workers are from, these are luxury homes.

RonJ
RonJ
1 year ago

I think even Hollywood false facade back lot homes were built better.

Avery2
Avery2
1 year ago

I would take any Irish builder from the sw ‘burbs of Chicago than any national builder. Not kidding. Stop by Gaelic Park. Hot water boilers. Overhead sewers. Deep basements. Lumber from independent lumber yards, not Home Depot crap. Chicago Faucets. They know where to find the good roofers and tile setters.

Last edited 1 year ago by Avery2
Frilton Miedman
Frilton Miedman
1 year ago
Reply to  Avery2

Lumber from independent lumber yards, not Home Depot crap.”

Unfortunately, local companies don’t have Home depot’s advantage – https://www.opensecrets.org/orgs/home-depot/summary?id=D000000419

This is true in all sectors.

.

Sam R
Sam R
1 year ago

Home buying, like car buying, can be and often is, an emotional decision. For new home developments, the unsexy but important stuff has to do with drainage, storm water management, how the land was surcharged, and a host of things before you even look at the structure. I’ve noticed that the term “luxury” is used quite liberally in the marketing of homes. I also note that in many homes, the materials used are extremely cheap….the so called fit and finish. I’ve also noted some very decent new home tract construction. Another thing I’ve noticed is that nothing would get built without Mexican labor. You have to do your homework when it comes to homes. I’d actually get a professional inspector and not the one selected by your agent….but one you hire directly to do an inspection before you make an offer.

C Z
C Z
1 year ago

Who’s surprised by 3rd world construction standards? Let’s see…we’ve got a 3rd world president, we’re dominated by a 3rd world party who espouse 3rd world policies and standards. What other outcome could be expected?

Bayleaf
Bayleaf
1 year ago
Reply to  C Z

And we have people from 3rd world countries doing the construction

Micheal Engel
Micheal Engel
1 year ago

China, during COVID, was falling apart. They boosted RE, but RE was falling apart. They boosted ev, but ev is falling apart.

Last edited 1 year ago by Micheal Engel
DavidC
DavidC
1 year ago
Reply to  Micheal Engel

Nonsense. EV sales are up about 25% Globally this year so far as of 1st quarter.
Don’t confuse the desire by some to keep huffing on poisonous Gasoline Fumes for what’s already happening Globally.
EVs are on pace to sell MORE vehicles globally than the size of the entire US Auto Market.
Legacy automakers will either be able to make the transition or die off like Xerox and Kodak and Nokia and Blockbuster and Sears.
Cheers!

Peace
Peace
1 year ago
Reply to  Micheal Engel

Yes, Chinese EV sale will fall apart. Tariff will be increased 4 times. ( ie. 4 times). Will be increased more if not enough.

Joe Poncakia
Joe Poncakia
1 year ago

How many commenters have ever worked in the home building industry. I live in Ft Myers FL and DR Horton has numerous projects near me. I can’t speak for all of them but the ones I’ve seen are beautifully done. I attribute that to having a great project manager and competent subcontractors. S.Carolina may not have the trained workforce necessary and project managers are afraid that if they are too strict with them they’ll walk off the job and go work for another builder for more money.

DavidC
DavidC
1 year ago
Reply to  Joe Poncakia

Boeing, Ford (Most Recalls of any Automaker), DR Horton and others are suffering from poor management, poor company culture, an earnings focus vs quality focus and a lack advanced skills / advanced training to keep them ahead of competition.
You’re probably correct that local / regional teams make a BIG difference but the overall trend is determined by the Leadership of the Company, the Culture of the Company and the Workers and their Skill Levels and Training. Manufacturing and Construction is HARD to get away with substandard quality for long.
Cheers!

XBuild
XBuild
1 year ago
Reply to  Joe Poncakia

They look beautiful until you get inside and look at what behind the facade. Most homeowners or home inspectors dont see where corners were cut. Small builders who rely on quality is who you want building your home…not these union cookie cutter builders

Christoball
Christoball
1 year ago
Reply to  XBuild

They are not union builders, they are illegal third world types

phil davis
phil davis
1 year ago

Anyone who knows how to build a home knows the problem with more prominent home builders. They really don’t build homes. They hire subs who build small pieces of the house. Then, hire people who are supposed to schedule and supervise those subs. These so-called supervisors are usually idiots, paid low wages, and they don’t care what happens to the house. They don’t have any interest in the home builder except for a lousy salary.

Meanwhile, the executive makes a healthy fortune, and their main job is to keep shareholders happy. The loser is the consumer who trusts a major home builder for some unknown reason.

Joe Poncakia
Joe Poncakia
1 year ago
Reply to  phil davis

Massive over generalization. Subs are human and most take pride in their work. Supervisors in all likely hood were either subs at one point or worked for subs and know the trades. To call them all idiots is just lazy. The quality of the workforce vary among different states. I was in Summerville SC 25 years ago and it was not a place most would chose to live. Then the national homebuilders found out there was cheap land there and transformed the place into a retirement alternative to Florida for NJ, NY, Conn old folks. Unfortunately, they lack a properly trained labor force.

phil davis
phil davis
1 year ago
Reply to  Joe Poncakia

Look, I’ve worked as a consultant to a few of these big public firms. They pick the cheapest subs and the dumbest supervisors. Some are okay, but they have far too many projects going per person. These subs are sub-par craftsmen. Every single corner that can be cut, every penny that can be saved, is the first thought on these companies’ minds. I have seen it and mentioned it to management; they don’t care. The supervisors are under constant pressure to finish under time and under budget; it becomes a nightmare for some of these people, so the work suffers.

Concrete work that is never tamped down, caissons put in the wrong place, not even under the footers—that’s a future foundation disaster, and that is just the beginning.

This is why we see these problems with these homes; they are widespread. Usually, smaller builders are much better, and good contractors charge more, as shown in their sub-work. And don’t get me started on electrical wiring; it is pathetic.

Joe Poncakia
Joe Poncakia
1 year ago
Reply to  phil davis

Concrete work that is never tamped down” LOL. You obviously no nothing about concrete work.


ToddJ
ToddJ
1 year ago
Reply to  phil davis

Mr Davis, there is a kernel of truth in your posts but that’s about it. The rest is just hyperbole. You don’t understand home building at the operations level.

Laura
Laura
1 year ago

How did all of this get past the city/county inspectors? How were they able to get permits? How did this get past the home inspections paid for by the buyers? I see a lot of lawsuits against these people along with the builder. The builder will probably file bankruptcy to get out of paying. Also insurance companies won’t be renewing their homeowners insurance policies.

Doug78
Doug78
1 year ago
Reply to  Laura

When we built our house twenty some years ago in France we had some doubts as to the solidity of the construction so we talked to our insurance company. They sent in an engineer who found lots of structural problems and sued the builder who had to rebuild the house. It took a year but it was worth it.

Laura
Laura
1 year ago
Reply to  Doug78

We checked our builder with Farmers, property management company and our town. I was concerned because our town isn’t large but they had a lot of inspectors, engineers, etc. who provided good info. All of these companies are in the same town we’re building in. Buying a house is a large investment and everyone needs to do their own homework. I used to work in the mortgage industry so I saw some of these horrors on appraisals.

Jon
Jon
1 year ago
Reply to  Laura

City inspectors just inspect the absolute bare basics and never want to fail too much less they get the reputation of over regulating private enterprise.

Astroboy
Astroboy
1 year ago
Reply to  Jon

Inspectors do visual inspections. They don’t open walls, check plumbing fittings, and on and on. Home inspectors who write up a bunch of repairs don’t get calls from local real estate agents.

Laura
Laura
1 year ago
Reply to  Astroboy

1st lesson in homeownership is don’t hire an inspector recommend by a realtor. Realtors have connections who are not always looking out for your best interests.

Laura
Laura
1 year ago
Reply to  Jon

This doesn’t apply to all cities. We previously lived in a condo. Our association usually hired the cheapest bidder and the work was crap and sometimes the contractors tried to do work without permits. Our village inspectors didn’t let them get away with anything. They made the contractors fix the shoddy workmanship and get permits.

Stuki Moi
Stuki Moi
1 year ago

It’s “Made in America.” Of course it’s falling apart.

Falling apart is what America does.

Roads, planes, cars, hospitals and health care, military misadventures…

It would be a lot more shocking if anything from the land of blind and uncritical belief in: Wall-fungi; random number picking and dead-guys’-head printing creating value, did not fall apart.

Doug78
Doug78
1 year ago

Builder problems are not limited to the US. Just about everyone I know here has had similar problems.

Dr Funkenstein
Dr Funkenstein
1 year ago

They know how to get Pudgy Walsh on the horn. D B Horton making a great case for the government to nationalize the home building industry

Frilton Miedman
Frilton Miedman
1 year ago
Reply to  Dr Funkenstein

Same low quality at a cheaper price?

wheeler gannon
wheeler gannon
1 year ago

That darn Biden; ‘comes in and everything falls apart.

Frilton Miedman
Frilton Miedman
1 year ago
Reply to  wheeler gannon

He personally built the homes, I saw it…on Fox news.

Astroboy
Astroboy
1 year ago

Don’t quit your day job.

Frilton Miedman
Frilton Miedman
1 year ago

Once any company goes public, priority shifts from quality of product to quantity of revenues, quality inhibits turnover.
It’s more profitable to sell a car every 8 years than every 10, a water heater every 10 instead of 15, etc.
In the case of home builders, it’s probably profitable to scalp $10K in material/labor off the price if only 10% of them complain, especially if you dominate the market.

This 17 minute video (by a physicist) does a great job explaining why quality products aren’t profitable, and how that’s almost become an accepted norm
.
https://www.youtube.com/watch?v=j5v8D-alAKE

.

Last edited 1 year ago by Frilton Miedman
Yooj
Yooj
1 year ago

The counterexample: Apple

Thetenyear
Thetenyear
1 year ago
Reply to  Yooj

Apple is not immune. Sales fell four billion dollars from the same quarter last year. Apple knows that wall street will not fall for the buybacks/dividend smoke and mirrors trick again. Sales are shrinking and costs are rising so they must do something to continue to meet high expectations. That something is to figure out how to make their products cheaper.

Not saying the wheels will fall off but Apple is arguably more vulnerable than most companies.

DavidC
DavidC
1 year ago

Some of the most profitable companies on the planet make the highest quality products and NOT the highest volume of products. Go do better research about Super-Premium products.

Frilton Miedman
Frilton Miedman
1 year ago
Reply to  DavidC

I almost didn’t bother, you see a tree and I’m describing the forest, but here… a construction related example.

Plumbing: Back around 20 years ago plastic pipe manufacturers started promoting plastic water pipe over copper.

Copper water piping is quality, but any plumbing company or supplier that refused to “sell that crap” went under, the price difference is absolutely huge.

As time has passed, that plastic piping is starting to fail, “PEX” piping is now rupturing, flooding homes, starting to reveal its shelf left, there are also concerns over chemical leaching.

Copper piping lasts 50 years.

Publicly traded companies spend massive amounts of lobby money in exchange for deregulation, deregulation should not revolve around who pays campaign funds, nor what Fox news says about its sponsors.

They also spend massive amounts of money on P.R. and NDA’s to keep failures out of the news.

wheeler gannon
wheeler gannon
1 year ago

Gosh, that’s an interesting video in many respects. (The obvious one is planned obsolescence. Also there’s cartel collusion, monopolistic suppression of competition. Note that Dupont by 1919 bought today’s equivalent $930 million GM stock, and was forced to divest a 23% GM stock holding in 1957 for antitrust reasons. So how to deal with companies like Google, Meta, Microsoft, Amazon, and other new tech giants with ‘natural monopolies?

Frilton Miedman
Frilton Miedman
1 year ago
Reply to  wheeler gannon

Sherman Anti-trust, not very popular with the anti-regulation crowd.

J.M.Keynes
J.M.Keynes
1 year ago

Blame this on that nice thing called “Capitalism”.

Last edited 1 year ago by J.M.Keynes
KGB
KGB
1 year ago
Reply to  J.M.Keynes

Capitalism rewards those who supply a need and bankrupts those who do shoddy work or cheat the customer.

J.M.Keynes
J.M.Keynes
1 year ago
Reply to  KGB

Nope. Sometimes this shoddy work shows up months or years later when the builder ahs gone bankrupt.

Jon
Jon
1 year ago
Reply to  KGB

In theory. Not always in practice.

Frilton Miedman
Frilton Miedman
1 year ago
Reply to  J.M.Keynes

Well, “unregulated” capitalism.

This is what happens when government can be bought.

Regulations can be costly, but deregulation can be even more costly.

If anyone blindly thinks all regulations are bad, let’s talk 2008 & subprime monetization.

.

Last edited 1 year ago by Frilton Miedman
Doug78
Doug78
1 year ago
Reply to  J.M.Keynes

You should look at the houses and apartment buildings built during the communist period in the old USSR before making that comment.

DavidC
DavidC
1 year ago
Reply to  Doug78

The regulations were crap in those buildings too.
You were rewarded for “Party Loyalty” and “Hitting Your 5 Year Plan” Quantities” NOT for producing Quality Work.
Don’t confuse Regulations related to Quality with “Cronyism”. Cronyism happens in all kinds of Governments and Economic Systems. Giving power to people (leaders / lawmakers) to favor their Special Interests is bad in Communism and Capitalism and Democracies Dictatorships.
Regulations are there to protect the people and consumers and the country. “Regulatory Capture” of the Government / Industry / Markets by Special Interests is the bane of effective markets and society.

phil davis
phil davis
1 year ago
Reply to  J.M.Keynes

Why do you guys always make the word capital and then add the “ism” a pejorative? You are just repeating Marx. There is absolutely nothing wrong with a person using their own capital to venture into any damn project they want. This is what a farmer does every year. Do you have a problem with him?

A better word is industrialism. This word covers the scope of bigness, which usually turns into cheapness.

DavidC
DavidC
1 year ago
Reply to  phil davis

“Crony Capitalism” is the problem. It’s Regulatory Capture or Special Interests that can influence Government (or Markets) at ANY Level. Some of the most corrupt and incompetent practices happen at the local levels, where the government and / or markets are beholden to a handful (or one) people with little in the way of Checks and Balances.
It doesn’t have to be “BIG Industrial” although the bigger they get the more cash and influence they can exert at All Levels.
Cheers!

Bayleaf
Bayleaf
1 year ago
Reply to  DavidC

It is crony capitalism, but its not the special interests, markets, or big industry to blame. They will always seek to maximize profits and they should. The problem lies squarely with gobberment and its meddling into everything at every level.

gwp
gwp
1 year ago
Reply to  phil davis

Free enterprise good.
Corporate capitalism bad.

Fast Bear
Fast Bear
1 year ago

Nothing gets done correctly by anyone anymore.
ADHD, no one can focus.

The homeowners should sue the city for passing inspection. You pay a lot for permits, that’s what their for.

Are we experiencing the final collapse “cannibalization phase?” Civility is dead, in this horrifically bifurcated society.

There is a mechanic shop I use.
Word got around, it’s highest rated shop within 60 miles.
People drive 60+ miles, past 100’s of shops and dealer’s and over on the ferry from the big city and leave the car for 3 + weeks then have the person who accompanied them in another car, return them back home over the ferry and then repeat the process again for pick up. Takes 2 people half a day+ just to drop your car off. When they pick their car up it will be fixed. The used parts will be in the trunk and they’re simply honest and fair.
They bought the lot next door to store this insane number (50 – 75) of their city customers waiting cars.

I work in tech as a system architect. Tech people (with rare exception) in the west can no longer digest white paper theory documents. They go fuzzy. Everything needs to be reduced into tranches of bullets, paragraphs need to be 3 sentences or less, each category with clear headings.

(((cognitive end times)))
few can think
parroting is not thinking
you’ll see it in the comments in here reflexive regurgitations of other peoples truths

Frilton Miedman
Frilton Miedman
1 year ago
Reply to  Fast Bear

Nothing gets done correctly by anyone anymore.”

Probably right, but it’s not by accident, nor is it stupidity, it’s intentional…for the seller who owns the majority of that market with little competition the math is highly beneficial..

See my post above.

.

DavidC
DavidC
1 year ago
Reply to  Fast Bear

Overgeneralize Much??
There are plenty of people in the world (and in the US) who do things very well or even exceptionally well. Quality is a function of Leadership and Culture in a Company that is backed up with hiring great talent and training for the future and advancement, not just for the minimum acceptable levels to skate by.
Cheers!

KGB
KGB
1 year ago

I have never seen a Hispanic construction worker do sloppy shoddy work. I blame affirmative action.

TexasTim65
TexasTim65
1 year ago
Reply to  KGB

Agreed. I have a crew remodeling my kitchen, bathroom and tiling my floors right now and they are doing excellent work.

Frilton Miedman
Frilton Miedman
1 year ago
Reply to  KGB

Light bulbs used to last decades, manufacturers stopped making them to last that long because turnover was too slow.

That’s because factory workers were Hispanic, right?

Boeing planes falling apart, ‘cuz Latino workers, right?
.
I’ll bet money Horton will be found to have cut material & labor costs, fully knowing a small enough percentage would fail after the fact to make it profitable.

.

Last edited 1 year ago by Frilton Miedman
Bayleaf
Bayleaf
1 year ago

They cut labor costs by hiring untrained and inexperienced labor. They don’t have to be Hispanic, but in the Northeast, that is all that I see nowadays.

Decorate Your Walls with Mish Fine Art Images

Click each image to view details or purchase in the store.

Stay Informed

Subscribe to MishTalk

You will receive all messages from this feed and they will be delivered by email.