Lennar Stock Sinks as Homebuilder Warns of Weak Housing Market

https://www.investopedia.com/lennar-stock-sinks-as-homebuilder-warns-of-weak-housing-market-11700985

Shares of Lennar (LEN) are tumbling 7% in intraday trading Friday, as the home builder’s warning of a weak housing market offset better-than-estimated quarterly results.

Co-Chief Executive Officer Stuart Miller said in a press release Thursday that a challenging "macroeconomic environment for homebuilding" weighed on the company in its fiscal first quarter. “While demand remains strong, persistently higher interest rates and inflation, combined with a downturn in consumer confidence and a limited supply of affordable homes, made it increasingly difficult for consumers to access homeownership," he said.

Miller said in general, net prices for homes, as well as rents in overbuilt apartment markets, have begun to drop as "demand remains constrained by affordability."