LEN · News · 20260920N
Gross Margin Drivers
LENNAR CORP /NEW/ · 2026-09-20 · Importance 31 · Surprise 32 · In source text
Lennar’s fiscal Q3 2026 gross margin on home sales was 15.8%, up from 15.6% in the prior quarter. Construction cost per square foot fell 6% year over year, while buyer incentives remained approximately 12% of home value. Since late 2023, construction cost per square foot has declined 14%, but land cost per home site has risen about 6%; the company attributed the margin gap to land committed to under different market conditions.
Key facts
- Lennar's construction costs per square foot fell 6% year over year, while incentives remained approximately 12% of home value. source
- In fiscal Q3 2026, Lennar's gross margin on home sales was 15.8%. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | — | Lennar's construction costs per square foot fell 6% year over year, while incentives remained approximately 12% of home value. |