Lennar, one of the nation’s leading homebuilders, announced the unveiling of its Premier Homes series in the Phoenix market, opening in neighborhoods across the Valley as a solution to home affordability.
READ ALSO: Home prices fall in Phoenix as sales decrease
Last summer, when real estate and new home prices across Arizona were the fastest rising in the country, Lennar was looking for a new approach that could provide affordable homes for buyers. The result is Premier Homes – a unique collaboration between Lennar and its many business partners that creates a lower monthly payment option that allows a first-time homebuyer to purchase a home rather than rent. The partnership includes mortgage lenders, trade partners and realtors.
By working together to find ways to cut costs and reduce expenses, Lennar is able to offer its new Premier homes for sale at more than $100,000 less than the median home sold in Maricopa County.
Lennar is currently debuting Premier Homes in nine communities across the Valley, including:
- Western Enclave at 91st Ave & Camelback in West Phoenix
- Verde Trails in Tolleson
- Alamar in Avondale
- Bella Vista Farms in the San Tan Valley
- Liberty in Phoenix near South Mountain
- Magma Ranch Vistas in Florence
- Sunset Farms in Tolleson
- Wales Ranch in San Tan Valley
The new three-bedroom, two-bath and two-car garage Premier Homes have three standardized plans to choose from ranging from 1,250 to 1,400 square feet and are offered at a price starting in the low $300,000s.
More developments are scheduled for the future, including:
- Harvest in Queen Creek
- Middle Vistas in North Phoenix
“Last year we set out to find a solution and made an appeal to our trade partners to join us in providing more housing options for Arizonans,” says Alan Jones, Phoenix division president of Lennar.
Lennar’s trade partners were very motivated to help create more housing options for first-time homebuyers. According to the Home Builders Association of Central Arizona, housing starts have seen a significant downward trend over the past year. The association reported that 7,785 permits were issued in the second half of 2022, down from 16,518 permits issued in the first half. Permits hit a low in December of 2022 with just 822, followed by only 867 permits in January of this year.
“At the time Lennar approached us with an appeal to partner in order to provide more affordable housing, we were certainly feeling the pinch of a declining new home market,” says Dave Sherwood, chief operating officer of Younger Brothers Companies. “We were doing what we could to keep our workforce busy, but market conditions had forced us to consider other options such as a four-day work week for some divisions.”
Sherwood explains that when Lennar came to Younger Brothers seeking a solution, they treated them as partners in solving a problem. “Lennar’s strategy for Premier Homes was different than all others and included an opportunity for us to provide input,” he says. “Their plan provided a pathway for us to implement a simplified and standardized approach to build and provide our workers an even flow of work.”
Today, Younger Brothers Companies are keeping more of their employees working because of Premier Homes, according to Sherwood. Lennar and its trade partners created the standardized Premier model, which helps in building efficiency, creating less chance for errors while reducing homebuilding costs and construction time. All homes are part of Lennar’s “Everything’s Included’ program and come with upgraded standard items such as stainless steel appliances, granite countertops, oversized floor tiles, faux blinds, shaker cabinet doors, raised panel interior doors, Ring security alarm systems and are wi-fi enabled.
All Premier Homes are also energy efficient and Energy Star rated – meaning new homeowners will save money on lower utility bills.
“We’re grateful to all of our trade partners,” Jones says. “Without their collaboration, we wouldn’t have been able to offer the lower cost of Premier Homes and many first-time buyers in Arizona would not have the ability to afford a new home. The result is a home that realizes a 20% cost saving compared to another home of similar size.”
Premier Homes will account for about 20% of all Lennar homes built this year, totaling about 450 to 500 homes by the end of 2023. As one of the nation’s leading homebuilders celebrates 50 years of doing business in Arizona, it sees the Premier home option continuing into the future, with the intent of keeping this a part of Lennar’s homebuilding portfolio. Lennar just began sales of the Premier model option.
