Dive Brief:
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Horsham, PA-based Toll Brothers held onto the No. 1 spot in the homebuilders category on Fortune's list of the world's most-admired companies.
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The company, which was also ranked as the leading homebuilder in 2015, was followed by Lennar, D.R. Horton, CalAtlantic Group and NVR.
- Toll Brothers was evaluated on several criteria, including people management, quality of products/services, innovation and global competitiveness.
Dive Insight:
Toll Brothers ranked the highest among the homebuilders assessed in the people management and quality of products/services categories, while Miami-based Lennar led in innovation, quality of management, long-term investment value and global competitiveness. D.R. Horton, which is headquartered in Fort Worth, TX, came in No. 1 among builders for the use of corporate assets and financial soundness. Irvine, CA-based CalAtlantic topped in social responsibility. All five companies were in the top 10 of the 2016 Builder 100 list.
In December, Toll Brothers announced plans to partner with Chinese developer Gemdale Properties and Investment on a 133-unit luxury condominium project in Manhattan’s Gramercy Park, in New York.
As demand at the top of the luxury apartment market cools and tight financing makes it difficult for developers to convert those units into condos, builders and developers like Toll Brothers are shifting focus to the middle-luxury market in major metros and the entry-level category elsewhere.
To reach the latter group, the company debuted its T|Select line in Houston in January, with plans to expand the offering to its existing markets this year. Homes in that line will be smaller and with fewer added features, allowing the builder to meet the price point required by buyers in the category.
Executives forecast a robust year ahead, reporting in the company's fourth quarter and fiscal year 2016 results that reservation deposits for the first five weeks of 2017 were up 10% in units from a year ago. The company expects to deliver between 1,000 and 1,250 units in the first quarter of 2017 and 6,500 to 7,500 for the year. The company delivered 6,098 units in 2016 and 5,525 units in 2015.
Lennar also expects a steady market conditions this year, despite recent upward movement in mortgage rates, citing healthy employment levels, wage growth and consumer confidence. In September, the company bought Florida-based homebuilder WCI Communities for $643 million, which gave the company more than 14,000 home sites in high-growth markets.
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