Record Merger, Tax Reform Plan Offer Differing Industry Outlooks
Lennar Corp.'s record takeover of CalAtlantic will be the largest merger of home builders, with a stock-market value of about $18.5 billion.
“We continue to see strength in the housing market,” Lennar CEO Stuart Miller said in a statement to Bloomberg. However, industry anxiety has not abated. Both the National Association of Home Builders and the National Association of Realtors have voiced industry-wide concerns about the proposed tax plan having a negative impact on housing markets; both organizations have stated they will strongly oppose the reform.
Real estate industry lobbying groups may be making headway. The House of Representatives’ chief tax writer said over the weekend he’ll preserve the tax break. “At the urging of lawmakers, we are restoring an itemized property-tax deduction to help taxpayers with local tax burdens,” House Ways and Means Chairman Kevin Brady said in a statement Saturday afternoon.
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