Dive Brief:

• Homebuilders that  survived the economic downturn emerged with a conservative strategy that involves less speculative construction, which may have contributed to the downfall of those whose businesses failed, a homebuilding executive said this week.

• In a conference call with investors, Stuart Miller, CEO of Lennar, the second-largest U.S. homebuilder, said a slower-than-expected housing recovery, combined with limited land supply and restricted access to capital, "constrains" smaller builders who made it through the recession.

• Miller outlined four other trends he said are influencing the decisions of homebuilders. First, he said, the slow recovery has created tight inventory in many markets, and that has led to higher home prices. Second, strict credit standards are keeping many first-time homebuyers out of the market. Third, more millennials are renting instead of buying, diluting demand for new homes. Finally, the welcome news that some of those millennials are ready to become homeowners is clouded by their slow entry and the difficulty they face qualifying for mortgages.

Dive Insight:

Miller made the comments as the publicly traded builder’s stocks rallied on Wall Street Wednesday in response to news from the Census Bureau that home sales and prices were up in May.

In a statement, Miller said Miami-based Lennar is "well positioned for multi-year growth ahead."

Still, Lennar reported that increasing land costs are cutting into the firm's gross profit margins, even as deliveries of homes rose by 21% when compared with the second quarter of 2015, and the value of new orders rose 28%.