Lennar sees most home orders in a decade in Q2
Lennar’s strong quarter bucked an industry trend. While the homebuilder saw its deliveries and orders increase, tight inventory has activity across the industry trending downward. The most recent data from the Department of Housing and Urban Development and the Census Bureau revealed housing starts hit lows in May while new home sales dropped 11.4% in April, HousingWire reported.
In a call with analysts Tuesday, company executives said they plan to focus on shorter-term land acquisitions and maintain a 7% to 10% growth rate for the company while reducing selling general and administrative expenses. Activity generated from the acquisition of Florida builder WCI, which was finalized earlier this year, should help attain that growth, officials said.
The company is also focused on expanding its offerings to first-time buyers, which make up 40% of its product mix currently. “The general trajectory is positive, even at the first-time buyer level, as the millennials start to unwind their doubling up and come to the market realizing that rental rates have gone up, and there is a real reason to go ahead and purchase,” Lennar CEO Stuart Miller told analysts, adding that first-timers are proving “flexible” as prices increase.