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Amid a deepening housing slowdown, Lennar—America’s second-largest homebuilder— is deploying the most substantial buyer incentives since 2009, Fast Company writes.
Lennar is offering the equivalent of roughly 13% of a home’s sale price in mortgage buydowns, price reductions and design upgrades. The surge in incentives reflects softness in key Sun Belt markets like Florida and Texas, where excess inventory and weaker demand are giving buyers leverage.
In its second quarter, Lennar saw average home prices fall to around $389,000—its lowest in five years—while gross margins dipped to about 17.8% due to elevated incentive spending. Despite broader economic pressures—from high mortgage rates nearing 7% to rising construction costs and tariff uncertainty—Lennar delivered over 20,000 homes and maintained margins near 18%, placing it ahead of some peers. With housing sentiment at near-decade lows and inventories peaking, the company plans to sustain aggressive incentives to preserve sales volumes through a challenging market.
