Trump's Housing Chief Criticizes Buybacks, Leading to Declines in D.R. Horton, Lennar, and Other Homebuilder Stocks.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy LEN?
Source: Barron's
- Home Builder Stocks Decline: Home builder stocks experienced a significant drop on Wednesday.
- Criticism of Share Buybacks: The decline was influenced by comments from Bill Pulte, Director of the Federal Housing Finance Agency, who criticized share buybacks.
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Analyst Views on LEN
Wall Street analysts forecast LEN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LEN is 101.18 USD with a low forecast of 80.00 USD and a high forecast of 122.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
0 Buy
7 Hold
6 Sell
Moderate Sell
Current: 115.370
Low
80.00
Averages
101.18
High
122.00
Current: 115.370
Low
80.00
Averages
101.18
High
122.00
About LEN
Lennar Corporation is a homebuilder and an originator of residential and commercial mortgage loans. The Company is also a provider of title insurance and closing services, and a developer of multifamily rental properties. The Company's segments include Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar others. Its Homebuilding segments primarily include the construction and sale of single-family attached and detached homes, as well as the purchase, development and sale of residential land directly and through its unconsolidated entities. The Company's Financial Services segment primarily provides mortgage financing, title and closing services primarily for buyers of its homes, as well as property and casualty insurance. The Company’s Multifamily segment is involved in the development, construction and property management of multifamily rental properties. its Lennar Other segment includes fund investments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Housing Plan Overview: The plan may focus on a rent-to-own model where private investors fund home construction and rent them to tenants, allowing rent payments to count towards a down payment after three years, aimed at addressing the U.S. housing affordability crisis.
- Need for Government Support: The initiative might require backing from the White House, with government-backed mortgages (potentially through Fannie Mae or Freddy Mac) likely playing a role, highlighting the government's critical influence in the housing market.
- Market Context: The U.S. housing market has been sluggish for years, with home prices rising over 50% from 2000 to 2024 while wage growth has stagnated, exacerbating affordability issues; if successful, this plan could positively impact the upcoming mid-term elections.
See More
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- Information Flow Review: The investigation may focus on the flow of information with the trade group Leading Builders of America, amid worries that member companies could use this information to limit new home supply or coordinate pricing, potentially harming market competition.
- Housing Affordability Issues: With housing affordability at record lows, builders are exploring avenues for cooperation with the White House, including a proposed
See More
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- Antitrust Investigation Potential: The Trump administration is considering an antitrust investigation into U.S. homebuilders, although no final decision has been made, raising concerns about the industry's outlook and potentially impacting investor confidence.
- Stock Price Fluctuations: Following this news, shares of Lennar Corp. (LEN) and D.R. Horton (DHI) fell approximately 2%, reflecting the market's sensitivity to potential regulatory risks, which could lead to short-term capital outflows.
- Industry Impact: Should the investigation proceed, it could have far-reaching implications for the entire homebuilding sector, especially in the current market environment where companies may face stricter compliance requirements, thereby affecting profitability.
- Future Developments Monitoring: As the investigation could commence in the coming weeks, investors need to closely monitor related developments to assess the long-term impacts on the market and individual stocks, particularly in the context of the recovering real estate market.
See More
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- Affordability Crisis: Major builders are launching the 'Trump Homes' initiative to tackle America's housing affordability crisis, aiming to construct up to 1 million entry-level homes, which could unleash over $250 billion in housing development funding, blending private capital with government-friendly policies for significant market impact.
- Demand Activation: Industry giants like Lennar and Taylor Morrison are actively participating, planning to activate sidelined demand through a rent-to-own model, particularly benefiting first-time buyers, which is expected to significantly enhance sales velocity and market absorption rates, driving overall industry recovery.
- Material Innovation Demand: Xeriant's advanced building materials, such as the NEXBOARD panel system, align with the needs of large-scale housing initiatives by reducing costs, improving construction speed, and enhancing durability, and are anticipated to gain commercial relevance under policy encouragement, aiding builders in cost control.
- Supply Chain Effects: Builders FirstSource, as a supplier of construction materials, stands to benefit from the million-home initiative, with expectations of incremental growth across regional markets, particularly in standardization and logistics efficiency, further propelling the overall development of the construction industry.
See More
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- Housing Development Initiative: Lennar and Taylor Morrison are reportedly working on a plan to develop one million 'Trump Homes' in response to President Trump's affordable housing initiative, which is expected to significantly increase housing supply in the market.
- Innovative Financing Model: The proposal involves financing from private investors, with initial plans to rent these 'entry-level' homes to tenants, allowing rent payments to convert into down payments after three years, thereby lowering the barriers to homeownership.
- Market Scale Expectations: The initiative aims to deliver $250 billion worth of housing, and while initial losses will be borne by private investors, the project's scale could expand if more builders join, potentially driving industry growth.
- Policy Context: The proposal was pitched to the Trump administration in 2025, and although finer details are still being refined, this move indicates the government's focus on the housing market, which could influence future housing policies and market dynamics.
See More
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- Earnings Expectations Impact: Eli Lilly's shares fell nearly 4% on Tuesday, primarily due to disappointing 2026 guidance from its competitor Novo Nordisk, causing market concerns about Lilly's upcoming earnings report and signaling potential disappointment.
- Housing Market Recovery Hopes: Housing-related stocks rallied on a report suggesting a plan to make entry-level homes more affordable, although a White House official indicated that the Trump administration is not actively considering the plan, it still highlights the potential for a housing market revival.
- Investor Focus on Earnings: After Tuesday's close, several companies including AMD, Chipotle, and Uber are set to release earnings reports, with the market closely monitoring these announcements to gauge signs of economic recovery and industry outlook.
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