""During the past three years of difficult market conditions, we have maintained volume, we've grown market share, and we've re engineered our operating platform for a better and more efficient future when the market bottoms and normalizes, we're extremely well positioned with very strong market share in strategic markets, and our margin is leveraged to the upside," Stuart Miller, co-CEO of Lennar, said on the homebuilder's December 17 earnings call."
"See, Lennar's average selling price, net of incentives, reflects the average selling price after incentives are deducted-it is not the actual price paid by the typical homebuyer before incentives. While some of the average selling price decline is due to outright price cuts and some to a mix shift toward smaller homes, the biggest driver is aggressive incentive spending-primarily through mortgage rate buydowns."
Lennar's average selling price net of incentives was $386,000 in Q3 2025, down 10.2% from $430,000 in Q4 2024 and down 21.4% from $491,000 in Q3 2022. Lennar prioritized volume over margin in recent years, gaining market share while other builders were more conservative, but signaled it will be less aggressive about volume going forward. Lennar maintained volume and grew market share while reengineering operations for efficiency, positioning margins to leverage upside when the market normalizes. Much of the reported price decline stems from aggressive incentive spending, mainly mortgage-rate buydowns, with some influence from outright price cuts and a shift to smaller homes. ResiClub estimates that Lennar spent roughly $12,074 in incentives on a typical Q3 2022 sale.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]