Dive Brief:

• Lennar Corp, the second-largest homebuilder in the U.S., posted a 10% increase in new orders, a 16% increase in deliveries and a 5% increase in average home price for the third quarter, ending August 31.
• Lennar’s profit for the quarter rose to $223 million, or 96 cents per share, and total revenue rose 24% to $2.5 billion.
• Lennar’s results were better than industry analysts expected and support hopes for a "slow and steady" recovery, according to Lennar CEO Stuart Miller.

Dive Insight:

While Lennar continues to face obstacles — like prohibitive mortgage qualification standards, a weak demand for starter homes, and shortages of construction labor and buildable land — Miller said first-time buyers accounted for 30% of Lennar's sales in the third quarter, up 5% from a year ago.

Miller is optimistic that the industry recovery will maintain its momentum. "We have believed and continue to believe that the downside in the housing market is very limited and the upside very significant," he said.

Lennar is also optimistic about its rental business, and currently has 28 projects totaling 7,700 units under development. It also is in the process of establishing a $1.1 billion fund to construct apartments in about 25 of the country's largest housing markets. The builder said it will increase the equity of that multifamily fund to $2 billion in the next year.