Charles Brecker

MIAMI—Call it a mega merger. Two of the largest homebuilders,Miami-based Lennar Corp. and Arlington, Va.-basedCalAtlantic Group struck a $9.3 billion deal tomerge and create the nation's largest homebuilding company.

The merger comes at a time when America's homebuilding sector isfaced with a number of challenges from labor shortages to higherregulatory expenses. At the same time, opportunity abounds in theindustry.

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