The April 2 policy announcement from the White House was meant to get tough on global trade competitors. Its ripple effects may reshape the ground war for land in U.S. homebuilding.

Since "Liberation Day" — as several private builders have come to call the post-tariff declaration moment — the balance of power between public and private builders has shifted in ways not seen in nearly a decade. Deals once locked up by public builders are falling out of escrow. New land parcels are surfacing at terms regional and private builders haven't seen since pre-COVID.

We’re looking at three land opportunities right now that, six months ago, never would have come our way," says Nate Gibson, CEO of Columbia, SC-based McGuinn Homes. "They were tied up by public companies, and now they’re back on the table."

Private Builders Back on Offense

For the past several years, private builders have played defense. Constrained by capital access, burdened with higher interest rates, and priced out of many land deals by public competitors flush with balance sheet strength, they have often watched from the sidelines.

There was no way we were going to outbid the publics," says Wade McGuinn, managing shareholder at McGuinn Homes. "But now, with interest rates still elevated and sales slowing for them, they’re walking away from land. That’s new."

What changed? Two forces converged: public homebuilders’ deteriorating Spring 2025 sales pace and the unexpected hit of tariff cost implications. This double-whammy has many national players prioritizing short-term profit protection over long-term land control. In markets like the Carolinas, Georgia, Texas, and Arizona, that means walking from option contracts or renegotiating terms — moves that ripple fast in a tight land ecosystem.

These companies are defensive now," says McGuinn. "And that creates our opening."

Tariffs Are a Headline — But Regulation Is the Real Drain

While the media focused on the tariff shock and its 5% estimated hit to material costs, McGuinn argues the bigger story is hiding in plain sight: regulation.

The tariffs are a 5% issue," he says. "But 23% of our home cost is regulation. That’s the smoke bomb nobody wants to talk about."

That 23% figure, drawn from McGuinn’s internal data and national estimates from the NAHB, includes zoning delays, permit fees, code compliance mandates, and infrastructure requirements. These costs, McGuinn says, disproportionately harm the very housing segments — entry-level and workforce — the administration claims to support.

Tariffs are easy to headline. But we’re being regulated out of building homes for people who need them most," he says. "If we really want affordability, let’s fix what’s driving the real cost."

To that end, McGuinn Homes is hiring a government liaison to advocate not for regulatory rollback, but simply for adherence to existing guidelines.

We’re not asking for loopholes," he says. "Just clarity and fairness."

Culture Clash: Publics Can’t Pivot Fast Enough

Perhaps the biggest story, though, is cultural.

The public builders aren’t set up to respond quickly," says McGuinn. "By the time they adjust product lines or budgets, the moment’s gone."

That lag may prove costly. Where big builders need quarters or even years to bring new affordable products to market, private players like McGuinn Homes already operate lean, entry-level operations. Their sales pace may not rival the big players’ national totals, but their ability to pivot is proving to be a strategic asset.

The culture of value doesn’t just show up overnight," says Gibson. "You can’t bolt on affordability. It has to be baked into every part of your process."

That includes efficient designs, fast permitting, low land basis, and trade relationships that prioritize speed and repeatability. McGuinn Homes’ 360-degree win philosophy — where customers, trades, employees, and the company all benefit from clear, efficient practices — is paying off in a way public companies can’t easily replicate.

Operational Excellence Rooted in Culture

At McGuinn Homes, the principle of affordability isn’t a pivot — it’s the operating system. The company’s leadership has long emphasized customer-centricity, standardized product design, and efficient builds not as tactical levers, but as cultural cornerstones.

We don’t build homes and then try to find buyers," says Gibson. "We build for buyers who need a home they can afford — and everything we do is engineered around that starting point."

This extends to land strategy as well. While many public companies use "land-light" as a balance sheet management slogan, McGuinn’s approach treats land-light as an ethos: a business model that drives decisions across sourcing, operations, and product planning.

Land-light isn’t just about owning fewer lots," McGuinn says. "It’s about how your entire company functions. You turn inventory faster, manage capital tighter, and deliver homes more predictably. That’s how we compete."

A Window That May Not Last

While private builders are seizing this moment, they know the window could close quickly. Should interest rates fall or the economy stabilize, public builders could reenter land markets in force.

As soon as the pendulum swings back, they’ll drop us like a rock," says McGuinn. "This industry’s full of short-term memory."

Still, for now, McGuinn and others are acting decisively.

We’re not just reacting to the opportunity," says Gibson. "We’ve been preparing for it. When your whole company is built to move fast and deliver value, you don’t have to pivot. You just keep doing what you do best."

Takeaway

The post-tariff market isn’t just a story of macroeconomics. It’s a case study in operational culture, land strategy, and leadership mindset. Private builders with vision, discipline, and systems now have a rare opportunity to play offense. Whether they capitalize fully depends on their ability to maintain focus, execute quickly, and resist the temptation to imitate the companies they’re temporarily outmaneuvering.