Davis Homes closes doors

July 23, 2008
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Davis Homes logoThe housing downturn has claimed a local powerhouse: Davis Homes, one of the state’s largest local homebuilders, ceased operations today after its fight for survival came up short. The company joins more than 30 homebuilders nationwide who have discontinued operations since 2007. The builder said it has secured warranty insurance so Davis homeowners will be covered. It also has arranged for regular maintenance and is looking for other homebuilders to complete its neighborhoods. The full story is here. IBJ first reported on the grim prognosis for Davis back in May. You can read that story here. What does this mean for the local housing market? What's next?
  • Am I the only one that thinks this is good news?
  • I guess that means one less developer building aluminum siding crap in the suburbs.

    So yes Benji, i'd say it's a VERY good thing!
  • Yep, and fewer suburban homes in the flatlands to be struck by lightning. Maybe we'll see more SOLD signs in M-K, then, too.
  • So, those of you thinking this is a good thing are really happy people have lost their jobs? Wow... thanks for reminding me why most people suck.
  • The demand for tan vinyl siding just dropped 50%.
  • OK Don, Now all the people who lost their jobs can go home to Mexico. And stop living 20 to a house.
  • Ouch.
  • Bob,

    Since you were probably educated in a government school, I'll take this slow and explain it to you.

    The people who lost their jobs are actual Davis employees... most likely sales people, superintendents, marketing, customer service. These would be hard-working Americans. Those going home to Mexico, as you put it, would be hard-working constructors who are all sub-contractors and not employees. While they may be out of work as a result of this, their employer may very well have work for them with another builder.
  • As a past employee of Davis Homes, I am very very sad. This a company that
    has helped build Indianapolis for over 57 years. As production builders go
    they are better built, and more style than any in the same price point. The
    employees we dedicated, hard working, and committed to customer satisfaction.
    Don is correct, the ones who get hurt are your neighbors. I pray people will
    find some kindness for the employees and perhaps help them find jobs instead
    of taking cheap shots.
  • I'm sure those hard-working Americans are well-equipped to work elsewhere. Furthermore, they should have seen the writing on the walls.

    Good riddance, Davis! :)
  • Hey Don -- don't be so quick in judging government schools. My entire education was public. I went to IPS, then BSU CAP and am still able to put some pretty good posts up on this blog!

    It's too bad that the Davis people are losing their jobs but it is great that they are setting up the pull out with saving the homeowner's purchases. What now needs to be explored is how we make better and denser suburbs. This will be more profitable and beneficial to the Indianapolis region in the long-run.
  • My daughter's Barbie Doll house has more character than a Davis built house.
  • Don't worry Don, My government education made sure I would never use the word Constructors outside of a star trak reference.
  • Milkmen, elevator operators, typewriter manufacturers, and most GM employees all lost their jobs at the point that their products or services were no longer demanded. That's no different here.
  • Ever wonder where the sub-prime financing mess originated?

    Entry level production homes of questionable quality, financed with captive mortgage companies aligned with builders, offering outrageous terms with nonexistent controls, which where then sold to other financial institutions to refuel the sales cycle.

    Its past time that these bottom feeders are weeded out.

    Just look at what happened to Beazer/Crossman Communities.

    Someone should go to jail.
  • Now we know why Indiana has one of the best home-ownership rates and also leads the nation in foreclosures.
  • Feds are investigating homebuilder Beazer

    Residential builder probed in connection with potential mortgage fraud

  • Crossmann was reinvented under the Westport Homes name a few years ago. It has the same owner, who owned Crossmann.
  • Buyer Beware:

    Get your facts straight. Indiana does not lead the nation in foreclosures.
    California, florida Nevada, Arizona are well out in front. In fact Indiana's
    rate is below the national average.

    Another fact. Home building creates 125 jobs per home built throughout
    the economy. A loss of along term builder eliminates those jobs forever and
    the negative effect hits us all. T
  • The fact that Davis is shutting down has less to do with the economy/credit issue and more to do with poor management. When Charlie Davis started building homes in 1957, he was dedicated to building quality neighborhoods for a fair price. When he sold the company to his three sons, everything began going downhill. For the past 10 years, the company has been run on greed and poor leadership. Once the two oldest brothers sold out and left only the youngest son (Brad), the company was doomed. He doesn't know how to run a company.
  • According to Realtytrac, Indiana ranks 9th out of 50 states for foreclosures. Our top five lead for the past 10 years has now moved west and has been surpassed by California.

    Indiana now ranks 6th in the nation for homeowner vacancy rates for 2007 according to StatsIndiana.

  • If I remember correctly, and I didn't try to find any supporting research, it was the Indianapolis Metro Area that towards the tops in the nation for foreclosure rates.
  • BOB - How are you going to crack on DON for using “Constructors” then go and misspell “Trak.” It’s Trek… And try not to state your racist views when you post comments. It only discredits your comments and your government education you speak so highly of. How can you be happy about anyone losing their job in today’s economy? Kick any puppies or push down an old lady lately??
  • Bob -

    I guess your government education didn't teach you to use a dictionary, either.

    con·struc·tor /kənˈstrʌktər/ Pronunciation[kuhn-struhk-ter]
    1. a person or thing that builds.
    2. a person or company engaged in the construction business.
    3. a person who devises crossword puzzles.
    Also, constructer.
  • OK folks....ease up.

    What gets me is something I noticed earlier today when I logged on to MSN.com. Among the mess of ads was one offering a $200,000 mortgage for a rediculous low monthly payment with no SS# needed.
    And people wonder why we got into this debacle. (Hope I speld that rite.)
  • I don't know anything personally about Davis Homes, but presumably they weren't building the best homes, providing the best value to the consumer, and/or running their company well, otherwise they'd still be in business, right?

    Nobody should be happy about others losing their jobs, but i think people won't miss the continued overcontribution to the housing supply that has prevented housing prices from appreciating, thus risking their investments.
  • Idyllic -

    I don't necessarily think Davis overcontributed to the market. I have a couple of friends that live in Davis communities and they seemed to be placed realitively nicely in different parts of town.

    I think they got hurt by the CP Morgans of the world that built much bigger homes for the same money. Obviously, the quality of homes were different, but first time home buyers were looking for size more than quality, in my opinion.

    Davis will come back under a new name and won't miss a beat.
  • Davis Homes will now be a custom home builder. Is that okay with all the arrogant know-it-alls here?
  • Davis Homes a custom builder? Will there be upgrades from .040 vinyl to .042 ? Waiting for the answer...... It is hilarious how these clowns manage to go out of business, leaving trashy, empty unfilled subdivisions and then reappear a few weeks later like a new bigger cockroach. Maybe Davis & the old Crossmann owners can hook up and build custom homes.
  • Davis homes
    We have a 1965 Davis home for sale. Solid through and through, all brick exterior.

    Last year, we bought a 2004 Davis home. It's spacious, but it's vinyl clad. I call our neighborhood U-taupe-ia.
    I'm getting used to hollow, plastic doors. Our neighborhood consists of bland colors,but varied styles, and unique landscaping. The important thing? Great neighbors. It's what we can afford.

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