Suburban Migration, Customization Drives Record Toll Brothers Growth

Image via Toll Brothers.
Liseter - The Devon Collection Carriage House by Toll Brothers.

Fueled by the continuing migration of homebuyers to the suburbs during the pandemic, Horsham-based Toll Brothers has recorded better-than-expected order growth for the last quarter, writes Prashant Gopal for Bloomberg.

The luxury homebuilder saw purchase contracts for the three-month period ending with October go up by 68 percent compared to a year earlier to 3,407.

Orders were record-high, exceeding any other quarter in the history of the company, both in number and dollar value.

“We are currently experiencing the strongest housing market I have seen in my 30 years at Toll Brothers,” said Toll Brothers Chief Executive Officer Douglas Yearley.

The company was able to raise prices in most of its markets, with demand remaining strong for the last six weeks.

Customers are also now paying extra to customize their homes with features such as offices and homeschooling spaces. They are also relatively wealthy and have not been heavily affected by job losses during the pandemic, which means that they are more likely to have cash if they need it and can put down bigger down payments.

Shares in the company have recorded an increase of 25 percent throughout the year.

Read more about Toll Brothers at Bloomberg by clicking here.

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