Homebuilder Lennar’s average home price is down 21% from the pandemic housing market boom peak

Core Insights - Lennar, the second largest homebuilder in America, reported an average price net of incentives for new-builds at $386,000 in Q3 2025, reflecting a decline of 10.2% from $430,000 in Q4 2024 and a 21.4% drop from $491,000 in Q3 2022 [2] Group 1: Company Strategy and Market Position - Lennar has shifted its strategy to prioritize margin over volume, which has allowed it to gain market share while other builders adopted a more conservative approach [3] - The company has maintained volume and grown market share over the past three years despite challenging market conditions, positioning itself strongly for future market normalization [4] Group 2: Pricing Dynamics and Incentives - The decline in Lennar's average selling price is influenced by outright price cuts, a shift towards smaller homes, and significant spending on incentives, particularly mortgage rate buydowns [6] - Incentive spending has increased dramatically, with Lennar spending approximately $12,074 in Q3 2022 compared to about $62,837 per home in Q4 2025 [7] - When accounting for incentives, the typical homebuyer paid around $503,074 in Q3 2022, which decreased to about $448,690 in Q4 2025, marking a 10.8% reduction from the peak quarter [8]