Many savvy investors are turning to new construction properties because of compelling advantages that can significantly impact their bottom line and long-term strategy. As an industry leader with over 70 years of experience, Lennar’s Investor Marketplace stays on the cutting edge of real estate trends and brings you opportunities you can’t get anywhere else.
1. Immediate Cash Flow Without the Renovation Headaches1
Lennar’s new construction properties offer something that seasoned investors dream about: immediate rental readiness with premium rental rates. Unlike older properties that often require months of renovations, new homes come with modern amenities that today’s tenants actively seek and are willing to pay extra for.
Think about it, open floorplans, energy-efficient appliances and contemporary finishes aren’t just nice-to-haves anymore—they’re tenant magnets.
2. Future-Proof Building Codes & Lower Long-Term Costs
Here’s something many investors overlook: new Lennar homes are built to current building codes that specifically address today’s climate realities. While older properties were designed for yesterday’s weather patterns, new homes incorporate advanced weatherization, improved drainage systems and energy-efficient designs.
By improving energy efficiency, congressionally mandated requirements save residents an estimated $15,071 for single-family homes over 30 years, with residents saving $963 every year on energy costs, on average.1 This translates directly to your investment performance.
Additionally, insurance companies favor new homes because they have lower risk profiles, allowing you to save more than $700 a year in insurance costs compared to a home built in 1990.2
3. The Warranty Advantage
Lennar’s brand-new homes come with warranties that provide some financial safeguards for the first several years of ownership. Builder warranties for newly built homes generally offer coverage on workmanship and materials for one year, two years coverage for HVAC, plumbing and electrical systems, and up to 10 years coverage for major structural defects3 .
On average, you’ll save 10 to 20% on repair and maintenance when you invest in new construction, as a result of avoiding both one-time and ongoing expenditures needed to maintain older single-family homes4,5.
4. Depreciation Benefits and Tax Optimization
The tax advantages of new construction are substantial but often misunderstood. New properties typically qualify for accelerated depreciation schedules, and you can often depreciate the full purchase price over 27.5 years for residential rental properties.
Additionally, many of the modern systems and appliances we include in our new homes qualify for bonus depreciation, allowing you to front-load significant tax deductions.
Recent tax legislation has created significant new opportunities.
With the enactment of the One, Big, Beautiful Bill (OBBB) on July 4, 2025, bonus depreciation permanently returns to 100%. Any qualifying property acquired and placed into service after Jan. 19, 2025, will be eligible for this significant increase in deductibility⁶. Cost segregation studies can further enhance these benefits by reclassifying assets to 15, 7 and 5-year property categories instead of the standard 27.5-year life spans⁷.
5. Premium Rental Prices for Years to Come
Brand-new Lennar properties maintain their “new” status longer than most investors realize. A Lennar home that is 3 to 5 years old generally commands a rental price premium compared to homes built a decade earlier, given retention of modern features and sustained market appeal.
The magnitude of the premium may vary, as local inventory growth and competition from newer developments can moderate appreciation for Lennar homes relative to other builders.
Moreover, Lennar builds in up-and-coming markets that are bringing community development and infrastructure improvements to areas where interest may grow within the next few years. You’re not just buying a home, you’re investing into the vision of what the community will become.
New Construction is Smart Investing
The key to successful new construction investing lies in selecting the right markets and builder. Lennar is an expert in 90+ markets nationwide with more than 70 years of a respected, established and trusted reputation.
Consider the total cost of ownership, not just the purchase price. While new construction may have a higher upfront cost, the reduced maintenance, warranty protection and premium rental rates often result in higher net operating income, immediate cash-on-cash return and total returns over the life of the investment.
Get started today by browsing a curated selection of rental-ready, new construction single-family homes on Lennar’s Investor Marketplace.
Sources:
1 Source: Council for an Energy-Efficient Economy, “Groups Celebrate Updated Energy Efficiency Rules for New U.S.-Backed Homes,” 2024
2 Source: https://atimn.com/new-homes-vs-old-homes-homeowners-insurance-cost
3 Source: Federal Trade Commission, “Warranties for New Homes,” February 27, 2024; 2-10 Home Buyers Warranty, “What Does A Home Builders Warranty Cover,” September 20, 2022
4 Source: https://www.revive.realestate/post/how-much-do-you-lose-selling-a-house-as-is
5 Source: https://www.census.gov/library/stories/2023/10/older-home-costs.html
6 Source: Plante Moran, “100% bonus depreciation returns with the One, Big, Beautiful Bill,” July 21, 2025
7 Source: GBQ, “Real Estate Improvements Tax Deduction Strategies For 2024,” October 1, 2024
Additional Sources:
2-10 Home Buyers Warranty, “What Does A Home Builders Warranty Cover,” September 20, 2022
Internal Revenue Service, “Publication 527 (2024), Residential Rental Property”
Insurance Journal, “FEMA Pushing for Stronger Building Codes Nationwide,” June 17, 2022
Lennar makes no guarantee of present or future market conditions. Forecasts, projections and other predictive statements should never be relied upon. Before making a decision to purchase based in whole or in part on tax treatment or tax benefits, you should consult your own accounting, legal and tax advisors to evaluate the risks, consequences and suitability of any real estate transaction. Features, amenities, floor plans, elevations, and designs vary and are subject to changes or substitution without notice. Items shown are artist’s renderings and may contain options that are not standard on all models or not included in the purchase price. Availability may vary. Energy efficiency will vary due to many variables, including but not limited to, actual utility rates and fees, actual construction, floor plan, occupancy, appliance usage, thermostat settings, weather conditions, number of individuals occupying the home and orientation of the home. Lennar provides no guarantee of savings or efficiency that will be achieved by each homeowner. Lennar Limited Warranty (“Limited Warranty”) consists of: (a) a limited 1-year warranty on workmanship, (b) a limited 2-year warranty on systems, and (c) a limited 10-year warranty on structural elements. Exclusions apply. Proper maintenance of your Home is vital; failure to perform regular required maintenance can limit your Limited Warranty rights. Claims must be submitted as soon as possible and in no event later than the expiration date of the applicable limited warranty. Lennar has no obligation with respect to claims submitted more than 30 days after the expiration of the applicable limited warranty. Homeowner must provide Lennar with prompt and complete access to inspect and investigate claims and make repairs, and cooperate fully in the investigation of any claim. Failure to provide access to the home shall void the Limited Warranty with respect to that claim. Lennar reserves the sole right to determine the repairs and/or replacements necessary to meet the standards of the Limited Warranty, and reserves the option to repair, replace or pay homeowner the reasonable cost of repair/replacement for any warranted and covered claim. Disputes are subject to mediation and binding arbitration. State law may affect the terms of the Limited Warranty. See a New Home Consultant for details or to obtain a copy of the Limited Warranty. All product and/or company names are trademarks TM or registered trademarks ® of their respective owners, and use of these marks does not imply any sponsorship, endorsement, support, or affiliation between the trademark owners and Lennar. This is not an offer in states where prior registration is required. Void where prohibited by law. Copyright © 2025 Lennar Corporation. Lennar and the Lennar logo are U.S. registered service marks or service marks of Lennar Corporation and/or its subsidiaries. Alabama – Lennar Homes Coastal Realty, LLC. / Arizona – Lennar Sales Corp.; HSP Arizona, Inc. ROC 242267B-2; ROC 138431B; ROC 144869A; Lennar Arizona Construction, Inc. ROC 228129B; Lennar Arizona, Inc. d/b/a Lennar Homes ROC 232731B; Lennar Communities Development, Inc. ROC 137295KA / California – CalAtlantic Group, Inc. (Responsible Broker: Joanna Duke) #02058246; BMR Construction, Inc. 830955; Lennar Sales Corp. (Responsible Broker: Joanna Duke) #01252753; CalAtlantic Group, Inc. 1037780; Lennar Communities, Inc. 66241; Lennar Homes of California, Inc. 728102 / Florida – Lennar Realty, Inc.; Lennar Homes, LLC CBC038894; CGC062343, CGC1518166, CBC1257529, CGC1523282, CBC1260831, CGC1526578, CBC051237; Standard Pacific of Florida GP, Inc. CGC1506052, CGC1517342; U.S. Home Corporation CGC1518911; WCI Communities, LLC CGC031523 / Idaho – RCE – 57241 / Maryland – CalAtlantic Group, Inc. MHBR No. 128; U.S. Home Corporation MHBR No. 316 / Minnesota – Lennar Sales Corp; CalAtlantic Group, LLC, BC736565; U.S. Home, LLC, BC001413 U.S. Home, LLC / Nevada – Lennar Sales Corp.; Greystone Nevada, LLC 48844; Ryland Homes Nevada, LLC; Lennar Reno, LLC 64226; Ryland Homes Nevada, LLC 56652 / New Jersey – Lennar Sales Corp. / North Carolina – Lennar Sales Corp. / Oregon – Lennar Sales Corp. #201206464; Lennar Northwest, Inc. CCB #195307 / Pennsylvania – Lennar Sales Corp. / South Carolina – Lennar Carolinas, LLC / Tennessee – Lennar Sales Corp. ph. 615-465-4328 / Utah – Lennar Homes of Utah, Inc. / Washington – Lennar Sales Corp.; CalAtlantic Homes of Washington, Inc. CALATHW836LR; Lennar Northwest, Inc.LENNAN1893QG / West Virginia – US Home Corporation d/b/a Lennar; #WV060106. Date 09/25
