Suburban Migration, Customization Drives Record Growth for Toll Brothers

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Image via 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.

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 CEO 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 like offices and homeschooling spaces. These customers 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 increased 25 percent throughout the year.

Read more about Toll Brothers at Bloomberg by clicking here.

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