Yes, the builders are leveraged, but only because of greed. It’s almost as if their whole industry only thinks in ‘greed-cycles’.
‘What can we make in this cycle?’
Every cycle has it’s end, and they know this, so it’s key to maximize each aspect before it’s over: hire illegals, put as many homes as you can on a tract, charge as much as possible, finance your buyers yourself, package off their loans to Wall St, and then get out.
Greed, greed, greed.
They have built their brand identity, so when the next cycle comes around, they just create their slick marketing brochures, install the signs and flags, and presto: back in biz! And the cycle goes again.
