Despite ongoing softness in the housing market and a decline in consumer confidence, Lennar reported growth in new orders and deliveries during the home builder’s fiscal second quarter.
The No. 2 company on the 2025 Builder 100 list said its average sale price in the quarter—$389,000, down 8.6% from $426,000 a year ago—was a reflection of the softer market conditions. Given the persistence of high mortgage interest rates and deflated confidence among would-be buyers, the builder continued incentivizing sales to help solve affordability hurdles and enable consumers to purchase homes.
Quarter By the Numbers
- Home sale revenue decreased 7% in the second quarter to $7.8 billion, driven by a 9% decrease in the average sales price of homes delivered.
- Home deliveries increased 2% on a year-over-year basis to 20,131 in the second quarter.
- New orders increased 6% to 22,601 homes in the fiscal second quarter.
- The builder ended the quarter with a backlog of 15,538 homes representing a dollar value of $6.5 billion.
- Second quarter profit was $477 million and profit per share was $1.81, compared to $954 million, or $3.45 per share, a year ago.
- Controlled home sites of 98%.
What They’re Saying
“While we continue to see softness in the housing market due to affordability challenges and a decline in consumer confidence, we adhered to our strategy of driving starts, sales, and closings in order to build long-term efficiencies in our business.” — Stuart Miller, executive chairman and co-CEO
“We expected that the new normal of higher interest rates for longer would mean lower margins for longer as we drove affordability. We knew that we were initially going to have to bring down the price of homes that we build through incentives and mortgage rate buydowns to meet affordability and normalize the supply and demand balance. We believe we have gotten ahead of these market realities and are building what will become a stronger, margin-driving platform by using volume to enable us to drive costs down across our platforms.” — Miller
“Looking ahead, there is little evidence to support expectations of materially lower interest rates in the near term. As a result, elevated interest rates have solidified as the new normal. The environment is about recognizing that short supply is keeping prices higher and that only lower prices enabled by lower cost structures will define affordability.” — Miller
“Our starts pace and sales pace in the second quarter were 5.1 homes and 4.7 homes per community per month, respectively, as we continue to move toward an even flow operating model. Our production-first focus led to a cycle time of 132 days this quarter, 12% lower than last year, which has a positive impact on our construction efficiency.” — Jon Jaffe, co-CEO and president
