LAR Price Cuts Signal Shifts in Housing Market Dynamics
"Home builders have cut prices significantly. LAR, the second largest home builder in America, has cut their average selling price by about 24% over the last three years, LAR's average selling price net of incentives was 383,000. That's the lowest it's been at least going back to 2018. Some element of that is price cuts. Some element of that's the mortgage rate buy downs and closing costs. And look at this: LAR was selling at 491,000 in August 2022 and is now selling at 383,000. Lenar's order book is actually two times bigger today than it was in 2019."
— Nick Gerli
Nick Gerli highlights that LAR, a major home builder, has aggressively cut prices (24% off over three years) while seeing its order book double compared to 2019. He uses this data to illustrate that the housing market is undergoing deflationary pressure, where new home prices are now lower than resale prices. This commentary underlines the importance for investors to monitor micro market trends and inventory dynamics within the housing sector.
Target:N/A
Horizon:Medium-term 3–12 months Company CommentaryNeutral/Mixed Medium ConvictionScore: 7.5
Company Opinion •Thoughtful Money (with Adam Taggart) • Oct 12, 2025