Economic Downturn and Housing Demand Declines: The company's performance is highly sensitive to general economic conditions, including employment levels, consumer confidence, and housing affordability, which could lead to reduced demand for new homes and lower revenues.

Rising Interest Rates and Mortgage Affordability Concerns: Increases in mortgage interest rates can significantly impact homebuyer affordability and demand, potentially slowing sales, increasing inventory holding costs, and reducing profit margins.

Material and Labor Cost Volatility: Fluctuations in the cost of building materials, such as lumber, steel, and concrete, along with shortages or increasing costs of skilled labor, can negatively affect construction budgets and profitability.