Mold lawsuits against home builders D.R. Horton and Lennar: HVAC sizing, building science failures and what new-home buyers should do.
I think mold is quietly turning into the next lead paint or asbestos, and I'm waving a big flag about it. Volume builders like D.R. Horton and Lennar are getting hit with lawsuits over undersized HVAC, poor framing, poorly ventilated attics, wet lumber and homes built so tight they sweat themselves into mold. That's not "just maintenance." It's basic building science, and it's failing.
I walked through the Dixon v. D.R. Horton case in Louisiana, which stayed in state court and could grow into a class action going back years. There's also the Seminole Tribe litigation in Florida, where 450 homes and about a thousand tribal members are dealing with defective roofs and moldy walls. Follow the money: Horton has a $1.1 billion self-insurance reserve, Lennar raised its reserve 21% to $336.9 million, and jury verdicts over $10 million rose 52% between 2023 and 2024.
The human cost is real. One Texas house dropped from $318,700 to $117,000 once mold was disclosed. If you're buying new, get pre-drywall inspections, make sure the punch list is 100% done before closing, and get a proper air quality test from a pro before you panic or sign away any rights.
In this episode:
- Why mold may be the next asbestos for national home builders
- Undersized HVAC, tight houses, wet lumber and attic ventilation failures
- Dixon v. D.R. Horton and the Seminole Tribe mold case in Florida
- Builder self-insurance reserves and rising jury verdicts
- How a mold disclosure can tank a home's value
- New-construction buyer checklist: pre-drywall inspection, a finished punch list, professional air testing
Links: https://aroundthehouseonline.com
Takeaways:
- We warned mold is becoming the new lead paint — builders are ignoring humidity, and that's a systemic failure.
- I walked a Lennar job with wavy walls and undersized HVAC systems, proving sloppy framing and poor load calculations aren't isolated oopsies.
- We talked legal fireworks: the Dixon vs. D.R. Horton fight stayed in Louisiana courts and may expand into a class action reaching back years.
- I pointed out insurers and builders are quietly padding self-insurance reserves into the hundreds of millions, because construction litigation costs are rising fast.
- If you're buying new, we insist the punch list is 100% done before closing; seriously, pay for pre-drywall inspections and someone to manage the build, don't take their BS.
- Mold testing is a circus — spore counts and remediation estimates can vary wildly, resale values can plummet, so get proper air quality tests from pros like Caroline Blazowski before you panic or sign away rights.
Links referenced in this episode:
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Information given on the Around the House Show should not be considered construction or design advice for your specific project, nor is it intended to replace consulting at your home or jobsite by a building professional. The views and opinions expressed by those interviewed on the podcast are those of the guests and do not necessarily reflect the views and opinions of the Around the House Show.
