THE WOODLANDS, Texas – (Realty News Report) – LGI Homes, a Texas-based homebuilder, sold 9,339 homes in 2020, a strong indicator that historically low mortgage rates have helped drive a nationwide housing surge.
“LGI Homes delivered another record-breaking quarter, capping off the best year in our company’s history,” said 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 remained below 3 percent for months, improving affordability and encouraging many prospective buyers to enter the market.
Homebuilders have gained momentum during the COVID-19 pandemic as buyers shift toward suburban communities while remote work reduces the need for daily commutes. As employers adopt work-from-home policies and buyers prioritize space and lower-density neighborhoods, demand for suburban land and homes has increased. Land transactions for residential development have been particularly active.
In 2020, LGI Homes reported net income of $323.9 million, an increase of 81.3 percent from the previous year.
Annual home sales revenue rose to approximately $2.4 billion, up 28.8 percent from 2019.
Home prices also moved higher. In the fourth quarter of 2020, LGI reported an average sales price of $263,321, a 9.8 percent increase compared with the same period in 2019.
LGI’s home closings in the fourth quarter totaled 3,408, a 35.5 percent increase from 2,515 closings in the fourth quarter of 2019.
For the full year, LGI’s home sales increased 21.4 percent, according to the company’s earnings release.
At the end of the fourth quarter, LGI operated in 116 communities, up from 106 communities at the end of the fourth quarter of 2019.
LGI Homes designs, builds, and sells homes across multiple markets, including Texas, Arizona, Florida, Georgia, New Mexico, Colorado, North Carolina, South Carolina, Washington, Tennessee, Minnesota, Oklahoma, Alabama, California, Oregon, Nevada, West Virginia, Virginia and Pennsylvania. Based on units closed, LGI Homes ranked as the 10th largest residential builder in the United States.
Feb. 23, 2021 Realty News Report Copyright 2021
File: Homebuilding Surge Lifts LGI
Photo credit: Ralph Bivins, Realty News Report. Copyright 2021
File: (2) Eric Lipar. Homebuilding Surge Lifts LGI Homes. Homebuilding. Lots. Land. Construction. The Woodlands.