The Housing Market Just Hit a Dangerous New Low (Video)

In this 21 October 2026 published video, host Michael Bordenaro talks about how Lennar used Millrose Properties Inc., a publicly traded land-banking REIT based in Miami, Florida, spun off from Lennar Corporation in February 2025. to inflate Lennar sales numbers.

America’s second-largest homebuilder, Lennar Corporation, is sounding the alarm on a deteriorating housing market as a severe affordability squeeze forces massive operational shifts. In its recent Q3 2026 earnings report, Lennar revealed that its new home orders plummeted 9 percent year-over-year, prompting the company to slash its full-year delivery guidance for the second time this year down to 80,000–81,000 homes. 

The rapid slowdown is driven by a combination of macroeconomic headwinds that are pricing everyday consumers out of the market. Lennar executives noted that nearly 50 percent of prospective home visitors fail to qualify immediately for a mortgage due to rigid debt-to-income limits. The 30-year fixed mortgage rate has hovered near 7.4 percent to 7.5 percent, pushing buyer traffic to its lowest levels in over a decade. Lennar’s gross margin fell sharply from 29 percent down to 15.8 percent. This drop is heavily driven by legacy land option agreements locked in at higher pre-slowdown prices. 

To keep transaction volumes moving, builders are aggressively stepping in where traditional buyers cannot. Lennar is averaging 12 percent to 14 percent  of the sales price in buyer incentives (equating to roughly $55,000 per home), primarily used to buy down mortgage interest rates. In a highly unusual market pivot, Lennar has begun offloading hundreds of finished, unsold single-family homes in bulk to Millrose Properties, a corporate rental entity originally created and spun off by Lennar. This converts thousands of intended homeownership properties directly into corporate rentals to clear builder backlogs. 

Despite the alarming data causing many analysts to turn bearish, institutional heavyweights are treating the housing freeze as a generational buying window. Notably, Greg Abel and Berkshire Hathaway poured roughly $596 million into Lennar stock over a recent two-week span, expanding their ownership stake to 12 percent in a bet that the structural U.S. housing deficit (estimated at 4.7 million homes) will fuel long-term recovery.

https://youtu.be/8B_i1DCXXpE