March 12 (Reuters) - Lennar ( LEN ) on Thursday reported first-quarter home deliveries below Wall Street estimates as an inflation-driven affordability crisis in the U.S. dampens sales.

The Miami, Florida-based homebuilder's shares fell 1.2% after the bell.

"Our first quarter of fiscal year 2026 was defined by the same persistent headwinds that have challenged the housing market for over three years - high mortgage rates, constrained affordability, cautious consumer sentiment, and geopolitical uncertainty, especially now including the recent conflict in Iran," Lennar Co-CEO Stuart Miller said.

The company reported 16,863 home deliveries during the first quarter, compared with estimates of 17,677 homes, according to data compiled by LSEG.

Single-family homebuilders like Lennar ( LEN ) have been grappling with slowing sales over several quarters as a supply shortage resulting from years of underproduction, coupled with sustained inflation, has pushed up prices.

The company has been cutting costs to protect margins and using targeted incentives like mortgage rate buydowns.

However, U.S. homebuilder sentiment deteriorated for the second straight month in February, a survey showed, weighed down by persistently high land and construction costs as well as still-elevated house prices relative to incomes.

The National Association of Home Builders/Wells Fargo Housing Market index eased one point to 36 in February, remaining below the 50 break-even point for 22 straight months.

Lennar ( LEN ) now expects to deliver 20,000 to 21,000 homes in the second quarter, compared with analysts' estimate of 20,232 units.

The homebuilder delivered 20,131 homes during the second quarter of 2025.

It forecasts second-quarter gross margin on home sales between 15.5% and 16%, compared with 17.8% previously.

Excluding items, first-quarter profit was 88 cents per share, compared with Street expectations of 96 cents per share.

Revenue for the quarter ended February 28, 2026, came in at $6.62 billion, compared with estimates of $6.88 billion.