LGI Homes Opens Two New Communities in the Albuquerque Market

Rhea-AI Summary

LGI Homes (NASDAQ: LGIH) has announced the opening of two new communities in Albuquerque: Villa De Marcos Gabriel and Legacy at Sierra Vista. These neighborhoods offer new construction homes starting in the low $300s, featuring 3-5 bedroom floor plans ranging from 1,200 to 2,200 square feet. Both communities boast convenient locations near major amenities, employers, and schools.

The homes come equipped with LGI Homes' CompleteHome™ package, which includes energy-efficient Whirlpool® appliances, granite countertops, designer wood cabinetry, luxury vinyl-plank flooring, and Wi-Fi-enabled garage doors at no additional cost. Move-in ready homes are now available for interested buyers.

Positive

• Expansion into new markets with two community openings
• Competitive pricing starting in the low $300s
• Inclusion of CompleteHome™ package with premium features at no additional cost
• Strategic locations near amenities, employers, and schools

Negative

• None.

Insights

Real Estate Analyst

The opening of Villa De Marcos Gabriel and Legacy at Sierra Vista by LGI Homes in Albuquerque represents a strategic expansion in a growing market. With prices starting in the low $300s, these communities target the affordable segment, potentially capturing first-time homebuyers and young families. The location near major employers and amenities enhances the appeal, likely driving demand.

The inclusion of the CompleteHome™ package at no additional cost is a strong value proposition, differentiating LGI Homes from competitors. This could lead to faster sales and potentially higher margins. However, the current high-interest rate environment may impact affordability and slow sales velocity. Overall, this expansion aligns with LGI Homes' growth strategy but success will depend on local market conditions and the company's ability to manage construction costs effectively.

Market Research Analyst

LGI Homes' expansion in Albuquerque taps into a market with potential for growth. The median home price in Albuquerque is around $305,000, aligning well with LGI's starting prices. This positioning could attract a broad range of buyers, from first-time homeowners to those looking to upgrade.

The variety of floor plans (3-5 bedrooms, 1,200 to 2,200 square feet) caters to diverse family sizes and preferences, potentially widening the customer base. The emphasis on move-in ready homes with upgraded features addresses the current market trend of buyers preferring turnkey properties. However, the success of these communities will largely depend on Albuquerque's job market stability and overall economic growth, which investors should monitor closely.

Financial Analyst

While this expansion demonstrates LGI Homes' continued growth strategy, its financial impact may be in the short term. The company's focus on affordable housing could provide some resilience in a challenging market, but rising interest rates may pressure margins and sales velocity. Investors should watch for updates on absorption rates and average selling prices in upcoming earnings calls.

The CompleteHome™ package, while attractive to buyers, may impact gross margins if material costs increase. However, if it accelerates sales, it could improve inventory turnover and return on assets. LGI's ability to manage construction costs and maintain pricing power in this new market will be crucial. Overall, this expansion aligns with LGI's business model but its success will depend on execution and market conditions.

ALBUQUERQUE, N.M., Aug. 09, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) is excited to announce the opening of its latest communities, Villa De Marcos Gabriel and Legacy at Sierra Vista, in the Albuquerque market. These exceptional new neighborhoods offer stunning new construction homes, with prices starting in the low $300s.

Villa De Marcos Gabriel is ideally situated in Stinson Tower, providing residents with quick and easy access to a wide array of big-city amenities. This charming community is conveniently located near numerous employers, parks, recreation centers and other local attractions.

Legacy at Sierra Vista offers a serene living environment paired with convenient access to major city amenities. Located near I-25, this beautiful community is near various employers, top-rated schools, parks, recreation centers and other local conveniences.

Both communities feature an impressive selection of floor plans, ranging from three to five bedrooms. Designed with growing families in mind, these move-in ready homes are equipped with designer upgrades and features. The homes range from just under 1,200 square feet to over 2,200 square feet and include chef-ready kitchens, spacious family rooms, two-car garages, ample storage space and LGI Homes' highly coveted CompleteHome™ package.

The CompleteHome™ package offers exceptional interior upgrades, including a full suite of energy-efficient Whirlpool® appliances, beautiful granite countertops, designer wood cabinetry with crown molding detail, luxury vinyl-plank flooring and Wi-Fi-enabled garage doors, all at no additional cost.

Move-in ready, upgraded homes are now available. For more information or to schedule a tour, interested homebuyers are encouraged to visit LGIHomes.com/Albuquerque.

About LGI Homes

Headquartered in The Woodlands, Texas, LGI Homes, Inc. is a pioneer in the homebuilding industry, successfully applying an innovative and systematic approach to the design, construction, and sale of homes across 36 markets in 21 states. As one of America’s fastest growing companies, LGI Homes has closed over 70,000 homes since its founding in 2003 and has delivered profitable financial results every year. Nationally recognized for its quality construction and exceptional customer service, LGI Homes was named to Newsweek’s list of America’s Most Trustworthy Companies for the second consecutive year. LGI Homes’ commitment to excellence extends to its more than 1,000 employees, earning the Company numerous workplace awards at the local, state and national level, including the Top Workplaces USA 2024 Award. For more information about LGI Homes and its unique operating model focused on making the dream of homeownership a reality for families across the nation, please visit the Company’s website at www.lgihomes.com.

MEDIA CONTACT:

Rachel Eaton

(281) 362-8998 ext. 2560

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2d92f102-832d-4370-8691-26e4ba11199e

FAQ

What are the names of LGI Homes' new communities in Albuquerque?

LGI Homes has opened two new communities in Albuquerque: Villa De Marcos Gabriel and Legacy at Sierra Vista.

What is the starting price for homes in LGI Homes' new Albuquerque communities?

Prices for homes in the new LGI Homes communities in Albuquerque start in the low $300s.

What is included in LGI Homes' CompleteHome™ package?

The CompleteHome™ package includes energy-efficient Whirlpool® appliances, granite countertops, designer wood cabinetry with crown molding, luxury vinyl-plank flooring, and Wi-Fi-enabled garage doors at no additional cost.

What is the size range of homes in LGI Homes' new Albuquerque communities?

The homes in LGI Homes' new Albuquerque communities range from just under 1,200 square feet to over 2,200 square feet.