Rich Get Richer?

Housing markets are slowing down, but the slow-down is far from uniform. As is always the case with real estate, it's location, location, location. Consequently, big builders like D.R. Horton, KB Home, and Lennar continue to post gains, due to geographic diversity, while more local builders such as M.D.C. are feeling the slowdown. M.D.C. showed steep declines in Arizona and D.C. and is pulling out of Texas entirely. The company is skating on increased business in California, Illinois, Utah, and Nevada, although the profit margin in Nevada has declined sharply. Steep increases in housing costs are apparently the chief villain in the declines.