While this pace over price strategy helped Smith Douglas Homes gain market share, it also resulted in a steeper margin decline than most public homebuilding peers over the past year. Determining a margin floorWhen asked if there was a margin floor that Smith Douglas Homes set for itself, Devendorf offered a candid response. This 15% margin floor is partially because Smith Douglas Homes now spends 15% of revenue on SG&A spending. A commitment to the affordable segmentSome builders have shifted away from or deemphasized the affordable segment, but Smith Douglas Homes reiterated its commitment to delivering affordably priced homes. Delivering a product that is more affordable than competitors remains a key part of Smith Douglas Homes’ strategy.