Skip to Content

Lennar Corp Class A

View Stock Summary
Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation

Lennar's Lighter Land Strategy Should Bolster Cash Flow Generation and Reduce Land Risk

Business Strategy and Outlook

US homebuilders enjoyed a robust demand environment from 2020-22 despite the covid-19 pandemic. We believe several factors explain the pandemic-era housing surge, including increased suburban and cross-state migration (due in part to the rise of flexible work arrangements), government stimulus (which bolstered household savings), and record-low mortgage rates (which supported affordability despite rising home prices). However, home sales activity began to decline in 2022 as rising mortgage rates and high home prices reduced homeownership affordability. Total housing starts declined 3% in 2022 and another 9% in 2023.

Free Trial of Morningstar Investor

Get our analysts’ objective, in-depth, and continuous investment coverage of LEN so you can make buy / sell decisions free of market noise.

Start Free Trial

Sponsor Center