KB Home

Two of America's largest homebuilders are pointing to different forces driving housing costs higher. Lennar says competition for construction labor from booming data center projects is pushing up its costs, while KB Home flags pressure from fuel prices, tariffs and broader inflation. The remarks add to concerns that affordability pressures on homebuyers will persist despite cooling demand.

KB Home executives said the US housing market has weakened since June, with the softening most visible in Texas, where resale home sellers are 'capitulating a little bit more' by cutting prices to close deals. The builder's comments point to growing seller concessions in previously hot Sun Belt markets as elevated mortgage rates and slower demand weigh on home sales.

Major US homebuilders, including KB Home and Lennar, are warning that housing market conditions are deteriorating as 30-year mortgage rates climb above 7%. The builders say elevated borrowing costs are cooling buyer demand and squeezing sales, raising concerns about a broader slowdown in residential construction and home sales across the United States.

US homebuilders Lennar and KB Home say housing costs keep rising, but they blame different pressures. Lennar points to competition for construction labor from booming data center projects, while KB Home flags higher fuel costs, tariffs and other input expenses. The comments highlight how factors beyond traditional housing demand are pushing up build costs and, ultimately, home prices for buyers.

Major US homebuilders, including KB Home and Lennar, are warning that housing market conditions have deteriorated as mortgage rates climb above 7%. The companies are flagging weakening demand and a broader slowdown in home sales, raising concerns about the outlook for the housing sector and the wider economy.