Lennar CEO Explains Housing Recovery's Shortcomings

The housing market has recovered from the financial crisis meltdown, but still the recovery hasn’t been as spectacular as expected. Lennar Corporation LEN CEO Stuart Miller was on CNBC Wednesday to discuss the improvement in the housing market and why people are still apprehensive about purchasing.

Steady Improvement, But Pace Is Slow

"It (the housing market) has continued to be steadily improving," Miller said. "And that’s what we have seen for the past years – steady improvement, but at a pretty low slope."

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New York Doesn’t Show The Actual Picture

Miller was asked if it has been disappointing to not see a more fast-paced rebound. He replied, "I think it has been disappointing to everybody, to the economy overall."

"I think, economic recovery has generally been defined by a recovery in housing, kind of leading the way, and that’s been sorely missing this time around.

"As you interview people here in New York City that are talking about $95 million penthouse apartments and everything, it seems like market is on fire and it has come back strong and the competition for these high-profile, high-priced properties is better than ever.

Different Story For The 'Average American'

Psychological Impairment Might Be The Reason

On why people are not buying homes at a rate they used to, Miller said, "I think there is a little bit of psychological impairment that comes from the downturn, the severe downturn that we had."

"The Millennials haven’t jumped into the market as first-time buyers. Historically, it's always been kind of axiom of our business that when 20-something year old people move back home, it takes six to 12 months for everyone to decide, ‘This is a bad idea,’" Miller concluded.