National Home CEO, President Bergman targets 18 percent gross margin

National Home Corp. Targets Growth and Margin

National Home Corp., the entry-level homebuilder, is pacing to close more than 800 homes this year, up from 550 in 2025. CEO and President Bergman wants National Home Corp. to exit the year with roughly 1,200 homes under construction by December.

That pipeline creates production capacity for 1,500 to 1,800 closings in 2027 if market conditions and the company's operational capacity cooperate. In July, CEO and President Bergman said the company generated an approximately 18% gross margin while maintaining its business-plan overhead.

National Home Corp. closed 25 in 2022, 304 in 2023, 747 in 2024, and 550 in 2025 amid weak market conditions. This year, CEO and President Bergman expects National Home Corp. to get back again above 800 total home closings in 2026.

National Home Corp., an entry-level homebuilder, was originally co-founded in October 2021 by Executive Chairman Wade Jurney, the CEO and President Bergman, and co-founder Gregg Erickson.

Execution Exceeds Plan as Production Scales

By the end of the first quarter, National Home Corp. had started 23 more homes than planned and finished ahead. The company also generated 100 net sales above plan and finished slightly ahead of its closing target during the quarter.

During the second quarter, National Home Corp. put another 107 starts above plan into production, exceeding its internal build schedule. The company finished the first half with 23 more total closings than its original business plan projected overall for the period.

National Home Corp. buys finished lots, builds the same floor plans repeatedly, and purchases the same concrete, windows, doors and roofing materials, and its homes are 100% spec.

Chief Operating Officer John Hayes, who previously worked with Executive Chairman Wade Jurney, is now very deeply involved in purchasing and day-to-day operations at the company.

CEO and President Bergman said National Home Corp. is leaning on scaling out to people who do the work more than executives who simply manage or sit there.

Warranty Accruals Reveal Wide Industry Differences

A review of warranty disclosures for 12 of the largest U.S. homebuilders found wide differences in accrual per home closed. Toll Brothers reserves roughly $3,800 per home while LGI Homes reserves roughly $384, a ratio of nearly ten to one.

Among builders analyzed, the FY2025 accruals per home closed ranged from Toll Brothers at $3,808 to LGI Homes at $384. Other major builders also included the NVR at $3,345, KB Home at $3,178, Lennar at $3,035, and PulteGroup at $2,905.

The list continued with M/I Homes at $2,690, D.R. Horton at $2,225, Meritage Homes at $1,238, and Century Communities at $963. Comparing warranty accrual with gross profit changes the story significantly for several major homebuilders, including both Toll Brothers and Lennar.

Lennar's roughly $3,035 reserve per home equates to about 4.4% of gross profit, the overall highest percentage in the comparison among all publicly traded major builders analyzed.

The article says the industry needs an agreed-upon common ruler to measure warranty claims per 1,000 closings and standardized resolution times at company, division and community levels.