Lennar Corporation (LEN) in Miami, Fla., operates as a homebuilder primarily under the Lennar brand in the United States. It operates through Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other segments. In comparison, D.R. Horton, Inc. (DHI) in Fort Worth, Tex., operates as a homebuilding company in the East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It acquires and develops land and constructs and sells residential homes.
Multi-decade high inflation and supply chain constraints could mar the near-term growth of the home builders’ industry. However, the desire to remodel living spaces for comfortable living and remote working should buoy the demand for home building products and services. In addition, relatively low housing inventory is expected to boost new housing construction, benefiting the industry. According to the U.S. Census Bureau, construction spending increased 9% year-over-year to $1.6 billion in December 2021. Moreover, the home builders’ industry is expected to benefit from improving macroeconomic conditions because consumer spending and per capita disposable income are increasing. Therefore, both LEN and DHI should benefit.
