Lennar Corporation and KB Home are two of the largest home building companies in the United States, and their recent earnings reports have shed some light on the state of the housing market.
Lennar Corporation, which is based in Miami, Florida, reported its second-quarter earnings in June. The company reported a net income of $831.4 million, or $2.65 per share, which was an increase from the previous year’s earnings of $517.6 million, or $1.65 per share. Lennar’s revenues also saw an uptick, coming in at $6.4 billion for the quarter, compared to $5.5 billion in the same quarter last year.
Lennar’s strong performance can be attributed to a number of factors, including increased home sales and higher prices. The company reported that it delivered 15,911 homes in the second quarter, a 14% increase from the same period last year. The average selling price of a Lennar home also rose to $415,000, up from $393,000 a year ago.
KB Home, on the other hand, reported its second-quarter earnings in June as well. The Los Angeles-based company posted a net income of $108.2 million, or $1.12 per share, which was a significant increase from the $24.1 million, or $0.27 per share, reported in the same quarter last year. KB Home’s revenues also saw a bump, coming in at $1.44 billion for the quarter, up from $1.08 billion in the previous year.
KB Home’s strong performance can be attributed to a robust housing market and increased demand for new homes. The company reported that it delivered 3,822 homes in the second quarter, a 46% increase from the same period last year. The average selling price of a KB Home also rose to $377,000, up from $360,000 a year ago.
Overall, both Lennar and KB Home have reported strong earnings in the second quarter of 2021, indicating a healthy housing market. With low mortgage rates and high demand for new homes, these companies are poised for continued success in the coming months. Investors and home buyers alike will be keeping a close eye on these industry giants as they navigate the ever-changing landscape of the real estate market.