President Donald Trump is now openly pushing to make homeownership more attainable by calling for lower mortgage rates and directing the federal government to buy $200 billion in mortgage bonds, a step he argues will help pull borrowing costs down from current levels near 6% on a 30‑year loan.
He is also urging Congress to cap credit card interest rates at 10% for a year, down from an average near 21%, to help households save faster for down payments. At the same time, he is seeking to ban large institutional investors from buying single‑family homes so ordinary buyers are not competing with deep‑pocketed landlords.
Amid this news, one established homebuilder has been thrust into the spotlight — Lennar Corporation (LEN). Lennar shares jumped roughly 8% in the past month, following many of these headlines. Still, the bigger question is whether this income‑paying name now offers a compelling way to gain exposure. Let’s dive in.
Lennar Corporation is a Miami‑based homebuilder designing and constructing affordable, move‑up, and active‑adult homes across the United States. Its equity base stands near $27.9 billion, and it returns cash through a forward annual dividend of $2 per share, which currently implies a yield of about 1.8%.
At a share price of $115 as of this writing on Feb. 5, LEN is up about 11% year‑to‑date but down 10% over the last 52 weeks.
The forward price‑to‑earnings (P/E) multiple of 17.39x versus a sector median of 18.20x, alongside a price‑to‑book (P/B) ratio of 1.28x versus 2.67x, points to a modest discount.
Lennar’s latest financial results, released on Dec.16, 2025, showed total sales of roughly $9.4 billion, up 6.33% year-over-year, while net income fell to about $490.2 million, down 17.04%. The company reported adjusted earnings per share (EPS) for the quarter of $2.03 versus a consensus estimate of $2.23, an 8.97% shortfall, which reflects tighter margins and incentives needed to keep homes moving.
The report indicated operating cash flow of roughly $216.8 million for November 2025, more than doubling with 114.05% growth. While overall net cash flow was negative at about $1.16 billion, it still represented a 64.14% improvement from the prior year as LEN invested heavily in land, communities, and its pipeline.
Lennar is leaning directly into the affordability theme. The company recently began selling homes at River Bridge Ranch, a single‑family community in San Marcos, Texas, aimed at cost‑conscious buyers. Homes there range from 1,200 to 2,780 square feet, with three to five bedrooms and two to three bathrooms. Pricing starts in the mid‑$200,000 range. Each home comes with a standard features package included in the base price, which lines up with the kind of attainable product likely to benefit.
