Lennar Defies Housing Market Trends

Across the country home sales are slowing and prices are dropping. The trend is causing most production home builders scale back their development plans. However, Lennar views the slowdown differently.

1 minute read

October 1, 2006, 11:00 AM PDT

By Mike Lydon


"Standing in a hallway at Lennar's offices, chief executive Stuart Miller clears his throat. He then proceeds to recite the entire seven stanzas of Scratchings From The Little Red Hen by heart.

The poem -- about a hen that labors to find worms in tough times -- is something of a rite of passage at Lennar, the third-largest home builder in the country. Since 1994, some 4,000 employees have recited the poem to the applause of their peers, with the name, date and place of each performance memorialized on large plaques outside Miller's office.

But these days, the poem is taking on a whole new significance. After a housing boom of more than a decade, the long-awaited downturn has finally hit with a speed and force few anticipated. Home-builder confidence has dropped to its lowest in 15 years. Cancellations are up. And new construction is down to a level not seen in three years."

Perhaps worst of all, it's hard to tell when things will get better.

'It doesn't feel like we can identify a bottoming yet,' said Miller, who recently downgraded Lennar's earnings estimates for the year. 'It happened very quickly, very suddenly. I can't identify the trigger.'"

Thanks to Senen Antonio

Monday, September 25, 2006 in The Miami Herald

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Floor-to-ceiling rotating gates at Fairmount subway station in Philadelphia, Pennsylvania.

Crime Continues to Drop on Philly, San Francisco Transit Systems

SEPTA and BART both saw significant declines in violent crime in the first quarter of 2025.

5 hours ago - Mass Transit

South LA Wetlands Park in Los Angeles, California.

How South LA Green Spaces Power Community Health and Hope

Green spaces like South L.A. Wetlands Park are helping South Los Angeles residents promote healthy lifestyles, build community, and advocate for improvements that reflect local needs in historically underserved neighborhoods.

6 hours ago - ABC 7 Eyewitness News

Intersection in downtown Sacramento, California with neoclassical building with columns on left.

Sacramento Plans ‘Quick-Build’ Road Safety Projects

The city wants to accelerate small-scale safety improvements that use low-cost equipment to make an impact at dangerous intersections.

7 hours ago - The Sacramento Bee