Homebuilding Surge Lifts LGI Homes Income 81 Percent

THE WOODLANDS, Texas – (Realty News Report) – LGI Homes, a Texas-based home builder, sold 9,339 homes in 2020, demonstrating evidence that ultra-low mortgage rates are fueling a nationwide residential surge.

“LGI Homes delivered another record-breaking quarter, capping off the best year in our company’s history,” stated Eric Lipar, the company’s Chief Executive Officer and Chairman of the Board. “During the fourth quarter we closed 3,408 homes, an increase of over 35 percent year-over-year. For the full year, we closed a record-breaking 9,339 homes and generated approximately $2.4 billion in revenue making 2020 our seventh consecutive year of double-digit top line growth.”

Mortgage rates have been below 3 percent for months, making home ownership more affordable.

Home builders have gained momentum during the Covid pandemic as home buyers have been moving to more suburban locations as employers shift to work-for-home practices. With reduced commute times to the office, residing in outlying suburbs are a smaller challenge. Land sales have been hot.

In 2020, LGI Homes recorded $323.9 million in net income, up 81.3 percent from last year.

Annual home sales revenues totaled $2.4 billion, up 28.8 percent over the previous year.

Home prices also increased. In the fourth quarter of 2020, LGI reported its average sales price was $263,321, up 9.8 percent over the comparable period in 2019.

LGI’s home closings during the fourth quarter of 2020 totaled 3,408, an increase of 35.5 percent from 2,515 home closings during the fourth quarter of 2019.

For the year, LGI’s home sales were up 21.4 percent, the company said in its earnings release report Tuesday.

At the end of the fourth quarter, LGI was operating in 116 communities, up from 106 communities at the end of the fourth quarter of 2019.

LGI Homes engages in the design, construction and sale of homes in Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia and Pennsylvania. LGI Homes has been ranked as the 10th largest residential builder in the United States based on units closed.

Feb. 23, 2021 Realty News Report Copyright 2021

File: Homebuilding Surge Lifts LGI

Photo credit: Ralph Bivins, Realtyt News Report. Copyright 2021

File: (2) Eric Lipar. Homebuilding Surge Lifts LGI Homes. Homebuilding. Lots. Land. Construction. The Woodlands.

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