Lennar missed revenue estimates, orders fell 9%, and leaders said conditions worsened as labor and tariff costs added pressure. Strong trade ties cushion shortages, only about 20% of divisions face greater pressure, and resale activity may bring move-up buyers, but sales weakness dominates.
These pressures can make homes more costly to build and harder to sell. Lennar’s trade-partner relationships cushion labor shortages, and more resale activity may bring move-up buyers. Still, falling orders, missed sales estimates, and worsening conditions point to a weaker business picture.
KB Home beat revenue and profit estimates, but reported rising fuel, inflation, and tariff cost pressure and expects higher direct costs for fourth-quarter deliveries. Fuel charges can fall if prices ease, and the company reported few labor problems, leaving mixed signals for its business.
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