Lennar Corporation is a national home building company with many projects underway or recently finished in Southwest Florida. While SWFL experiences a record-breaking home inventory shortage, buyers are focusing on new development construction perhaps more than ever. However, between construction material demand and the Covid-induced home improvement boom, we are experiencing material shortages like never before as well. Soaring material costs have pushed new home building costs up around $24,000 on average, according to Lennar. Just lumber alone averages $2,300 more for every home now versus a year ago. This has Lennar focusing more strictly than ever on keeping costs down in other areas of the home building process. According to Lennar’s 2nd Quarter 2021 filing, while homebuilding revenues went up more than 18%, their homebuilding expenses only rose 11% despite the increase in material costs.
What does this mean for you if you plan to build a home soon?
If you are looking to build a home in Verdana Village with Lennar (or even Pulte I’m guessing), plan on them taking a different approach from how they priced and built out recent developments. Our team has been told that in 2021-2022 homes will not be officially “sold” until they are much closer to being able to break ground. That way homes can be priced according to actual upcoming material costs. You won’t be able to lock in pricing several months in advance of breaking ground like customers have done in other developments.
This means it may become more important than ever to have your best interests protected by a real estate agent even when you build a home. The builders have their best interest in mind – a hard-working real estate agent will have YOUR best interests in mind. And the very nice thing about this arrangement is that your pricing with or without a real estate agent is the same! Whether you are hoping to build in Verdana Village or you would like help with another home, please consider contacting us for assistance by calling 239-351-0377 or fill out the quick form below.