Builder Toll Brothers Boosts Guidance as Orders Beat Estimates

June 21, 2024
Prashant Gopal - Bloomberg

Toll Brothers Inc. raised its fiscal full-year outlook as the luxury builder reported stronger-than-expected orders with buyers, starved for inventory of previously owned properties, flocking to newly built homes.

  • For the three months through April, purchase contracts rose 30% from the same period a year earlier to 3,041, the company said Tuesday in a statement. Analysts in a Bloomberg survey expected 3,004 orders on average.

Portugal Tries to Fix Housing Crisis by Encouraging Homebuilding

June 17, 2024
Henrique Almeida - Bloomberg

Portugal will lower taxes on new homebuilding and make more rural land available for developing affordable flats in a bid to ease the housing crisis in one of western Europe’s poorest countries.

Faced with a housing shortage and growing popular discontent, the government plans to place state-owned properties on the market, lower the value-added tax rate for construction of homes to 6%, and provide incentives for developers to build homes to rent.

The aim is to cool real estate prices by increasing the supply of homes, Infrastructure and Housing Minister Miguel Pinto Luz said on Friday at a press conference in Porto, northern Portugal. “We want to have homes available at lower costs.”


LGI Homes Celebrates National Homeownership Month

June 10, 2024
LGI Homes, Inc.

THE WOODLANDS, Texas, June 07, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH) commemorates National Homeownership Month.

Since 2003, LGI Homes has recognized National Homeownership Month every June by promoting the benefits of homeownership and highlighting the Company's unique value proposition to first-time homebuyers.

"At LGI Homes, we are proud to have helped over 70,000 families achieve the dream of homeownership," said Eric Lipar, Chairman and Chief Executive Officer of LGI Homes. "Each year, we commemorate National Homeownership Month by educating buyers on the financial and personal benefits homeownership brings. Despite the current challenges to affordability, we continue to focus our efforts on making homeownership affordable and attainable for buyers across the nation."

Throughout the month of June, LGI Homes will be celebrating its current homeowners by featuring their stories and testimonials and sharing what they love about owning an LGI Home.

About LGI Homes, Inc.
Headquartered in The Woodlands, Texas, LGI Homes, Inc. is a pioneer in the homebuilding industry, successfully applying an innovative and systematic approach to the design, construction and sale of homes across 36 markets in 21 states. As one of America's fastest growing companies, LGI Homes has closed over 70,000 homes since its founding in 2003 and has delivered profitable financial results every year. Nationally recognized for its quality construction and exceptional customer service, LGI Homes was named to Newsweek's list of the World's Most Trustworthy Companies. LGI Homes' commitment to excellence extends to its more than 1,000 employees, earning the Company numerous workplace awards at the local, state and national level, including the Top Workplaces USA 2024 Award. For more information about LGI Homes and its unique operating model focused on making the dream of homeownership a reality for families across the nation, please visit the Company's website at www.lgihomes.com.


New California City’s CEO Says He’s Fighting Anti-Growth Bias

June 3, 2024
Nadia Lopez - Bloomberg

Jan Sramek, the controversial leader of an effort to develop a new city northeast of San Francisco, said criticism of the project’s initial secrecy amounted to an “excuse” by opponents who are looking to block much-needed housing in California.

“That whole thing has been used as an excuse by people who have hated any kind of economic development or growth for the last 30 years,” he said Thursday at the Bloomberg Tech Summit in San Francisco.

Sramek envisions his California Forever project as a green, walkable city in Solano County, but the plan has sparked opposition among some residents worried about the impact on local farmers and the environment. Sramek’s group, with backers such as former Sequoia Capital Chairman Michael Moritz and social-impact investor Laurene Powell Jobs, has won a place on the November ballot for a measure that would overturn restrictive zoning laws in the county.


More Immigrants Recruited to Aid Trudeau’s Homebuilding Ambition

May 28, 2024
Randy Thanthong-Knight - Bloomberg

Canada is on track to add more newcomers with construction skills than in recent years, an early sign that a targeted immigration program is working — though still not quickly enough to close a massive housing supply gap.

Admissions of permanent residents with trades skills rose 29% from January through March from the average quarterly rate in 2023, according to government data obtained by Bloomberg. If that pace is sustained, Canada will grant residency to some 17,800 skilled construction workers this year.

The increase is solely driven by recent immigration policy changes to bring in more tradespeople to ramp up homebuilding. It’s crucial to Prime Minister Justin Trudeau’s goal to more than double the pace of construction to add 3.9 million homes by 2031 as he tries to calm housing angst and reverse waning popularity.


Cash-Stretched New Homebuyers Are Drawing a Line at Fixer-Uppers

May 20, 2024
Prashant Gopal - Bloomberg

For homebuyers trying to crack into a tough US housing market, it would seem like relief is here: New listings are on the rise.

The quality of properties, however, is on the decline. Sometimes shockingly so.

Of about 1,400 resale agents nationwide surveyed by John Burns Research & Consulting, 99% said they’ve seen homes for sale that need repairs or updates, with two-thirds of agents saying listings showed deficiencies in at least four different areas, including outdated kitchens and bathrooms.

The takeaway: Desperate homebuyers aren’t that desperate. Fixer-uppers can stay on the market longer and sometimes require discounts, with elevated prices and mortgage rates already straining the budgets of Americans looking to purchase a house.


Brooklyn Waterfront Condos Open as Williamsburg’s Building Boom Nears End

May 13, 2024
Jennifer Epstein - Bloomberg

A Brooklyn neighborhood’s residential development boom is nearing an end, as a condo tower opens at one of the final sites on the Williamsburg waterfront.

Sales begin Wednesday at One Domino Square, a 39-story tower just north of the Williamsburg Bridge. It’s the sole condo offering in the 11-acre (4.5-hectare) complex that Two Trees Management has been building around the historic Domino Sugar refinery, which was converted into offices.

The tower’s debut is the latest step in the transformation of the onetime industrial area, made possible by a 2005 rezoning that cleared the way for construction of some of Brooklyn’s most expensive housing. Earlier efforts in Williamsburg had been focused closer to the Bedford Avenue L train stop, or farther north along the East River. Two of those waterfront projects — Toll Brothers’ Northside Piers and the Edge by Douglaston Development — were finished in 2007 and 2009, respectively.


LGI Homes Named a Top Workplace for the Fourth Consecutive Year

May 6, 2024
LGI Homes, Inc.

THE WOODLANDS, Texas, April 02, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH), one of the nation's largest and most recognized homebuilders, announced today that it received the 2024 Top Workplace USA award issued by Energage and USA Today. This is LGI Homes' 4th consecutive year to receive this distinction.

The Top Workplaces USA Award program celebrates nationally recognized companies who focus on making the world a better place by prioritizing a people-centered culture, giving employees a voice and seeking to optimize the workplace experience.

Honorees are chosen based solely on employee feedback gathered through a confidential employee engagement survey, issued by Energage. Results are calculated by comparing the survey's research-based statements, that evaluate factors such as leadership, culture, and benefits that are proven to predict high performance, against industry benchmarks.


LGI Homes Awarded Prestigious 2-10 Home Buyers Warranty Platinum Builder Award for Outstanding Leadership in New Construction

April 29, 2024
LGI Homes, Inc.

THE WOODLANDS, Texas, March 27, 2024 (GLOBE NEWSWIRE) -- LGI Homes, Inc. (NASDAQ: LGIH), one of the nation's largest and most recognized homebuilders, announced today that they have been awarded the prestigious Platinum Builder Award by 2-10 Home Buyers Warranty, recognizing their exceptional leadership, innovation, and excellence in new construction throughout 2023.

The 2-10 Builder Achievement Awards Program distinguishes builders across three tiers: Platinum, Premiere, and Select. LGI Homes earned this award for their leadership in the new-construction industry, for introducing innovative home designs, marketing strategies, and construction technologies. LGI Homes has now received the Platinum Builder Award every year since the program began in 2018.

To learn more about the Builder Achievement Awards Program, visit www.2-10.com/builders-warranty/builder-awards/.


US Homebuilder Sentiment Increases to an Eight-Month High

April 22, 2024
Michael Sasso - Bloomberg

Sentiment among US homebuilders climbed to an eight-month high in March as a limited number of existing homes for sale and mortgage rates that are down from their peak spurred demand.

The National Association of Home Builders/Wells Fargo index of housing market conditions increased by 3 points to 51, according to data released Monday. The median estimate in a Bloomberg survey of economists called for a reading of 48.


US New-Home Sales Rise After Downward Revisions to Past Months

April 15, 2024
Michael Sasso - Bloomberg

Sales of new homes in the US edged higher in January as builders and buyers capitalized on lower mortgage rates at the start of the year.

Purchases of new single-family homes increased 1.5% to a 661,000 annual pace after the prior three months were revised lower, government data showed Monday. The median forecast in a Bloomberg survey of economists called for a rate of 684,000.


Homebuilder Toll Brothers Hits Record With Strong Demand Outlook

April 8, 2024
Prashant Gopal - Bloomberg

Luxury homebuilder Toll Brothers Inc. rose to a record Wednesday as the company said it’s optimistic about its prospects for a key selling season.

Since mid-January, “we have seen a meaningful uptick in demand that has continued through this past weekend,” Chief Executive Officer Doug Yearley said in an earnings call Wednesday.

The builder lifted its outlook for home deliveries in its fiscal year. Shares climbed 6.1% to $109.61 at 10:09 a.m. Wednesday, the biggest intraday jump since the middle of December.


US Homebuilder Sentiment Climbed to Six-Month High in February

April 2, 2024
Michael Sasso - Bloomberg

Sentiment among US homebuilders rose to a six-month high in February as buyers continued to take advantage of mortgage rates that have fallen from their October peaks.

The National Association of Home Builders/Wells Fargo gauge of housing market conditions rose by 4 points to 48 this month, according to data released Thursday. That beat the median estimate in a Bloomberg survey of economists that called for a reading of 46.


British Columbia Hatches $1.5 Billion Loan Plan to Boost Homebuilding

March 25, 2024
Thomas Seal - Bloomberg

British Columbia’s government launched a program to accelerate the construction of thousands of affordable homes, backed with a C$2 billion ($1.5 billion) lending commitment and C$950 million in spending.

BC Premier David Eby said the new body will identify owners of low-cost land, bring them together with contractors and developers, then work with local governments to expedite planning approval.


Barratt to Buy Redrow in Deal Creating UK’s Biggest Homebuilder

March 19, 2024
Damian Shepherd & Jack Sidders - Bloomberg

Barratt Developments Plc has agreed to buy rival Redrow Plc, a deal that would create the UK’s biggest homebuilder.

With the acquisition, Barratt Developments is taking a major bet on the prospects for a rebound in Britain’s beleaguered housing market ahead of a general election. The deal would give Barratt access to a vast land bank at a time when pledges to increase housing output are likely to play a central role in the upcoming general election.

Reprinted courtesy of Damian Shepherd, Bloomberg and Jack Sidders, Bloomberg


Can a National Zoning Atlas Chart a Way Out of the US Housing Crisis?

March 11, 2024
Kriston Capps - Bloomberg

Two years ago, a Montana think tank called the Frontier Institute released a new tool to help push the group’s advocacy for pro-housing reforms: a zoning atlas, one of the first of its kind. The atlas used parcel-level data to analyze local regulations that restrict how and where homes can be built, an issue for a state with skyrocketing housing costs. The study revealed that more than 70% of residential areas in Montana’s most in-demand communities prohibited the construction of even modest duplex homes, much less apartment buildings.


Gauge of US Pending Home Sales Jumps to a Five-Month High

March 4, 2024
Vince Golle - Bloomberg

A gauge of pending US existing-home sales rebounded sharply in December to a five-month high, suggesting the recent drop in mortgage rates is helping to stabilize the resale market.

The National Association of Realtors’ index of contract signings increased 8.3% to 77.3 after holding at a record low a month earlier, according to data out Friday. Last month’s advance — the largest since mid-2020 — exceeded all estimates in a Bloomberg survey of economists.


Myrtle Beach Eyes Austin’s Boomtown Crown

February 26, 2024
Conor Sen - Bloomberg

Cities such as Boise, Austin and Phoenix defined the pandemic housing boom. Now, as falling mortgage rates raise the prospect of 2024 being a strong year for homebuilding, new “edge” markets are seeing a surge in activity.

This is because three factors that dictate where builders put up houses have changed: the land they control, the economics used to underwrite new deals, and signaling from the stock market about how aggressive they should be. It’s all pushing builders away from the big growth markets of the 2010s and into areas that haven’t been built up — or bid up — to the same extent.


As ‘Mansion Taxes’ Catch On in US Cities, Los Angeles Offers Lessons

February 19, 2024
Sarah Holder - Bloomberg

The new villain on the seventh season of the hit reality real estate show Selling Sunset wasn’t a sassy new luxury broker not there to make friends. It was a real estate tax.

“Makes me nauseous even thinking about it,” real estate agent Mary Bonnet said of the so-called mansion tax in the season’s first episode, as she surveyed the living room of a $26 million eight-bedroom home in Brentwood.

The tax, known as Measure ULA, was pitched in 2022 as a fix to Los Angeles’ dire housing crisis. Passed by ballot measure with 58% of voters in favor, the measure created a new land transfer fee on real estate transactions over $5 million, and directed the proceeds to affordable housing projects, tenant protections and homelessness prevention efforts.


Developer Halts 'Co-Living' Building Projects in Houston, Tampa and Phoenix

February 12, 2024
Richard Korman - Engineering News-Record

A developer with an ambitious business model for attracting young urban dwellers to clubs and shared rental apartments has stopped work on projects in Houston, Tampa and Phoenix, according to news reports from those cities.

Mr. Korman may be contacted at kormanr@enr.com


Harmony Housing Affordable Development Launches with Acquisition of the Development Business of Greystone Affordable Development

February 5, 2024
Greystone

RALEIGH, N.C., Jan. 03, 2024 (GLOBE NEWSWIRE) -- Harmony Housing Affordable Development Inc. (HHAD), a newly-formed wholly-owned subsidiary of Harmony Housing, is acquiring the property development, development management, and advisory business of Greystone Affordable Development, effective immediately. Harmony Housing Affordable Development Inc.'s mission is to increase and preserve critically needed affordable housing in the U.S., which it has committed to doing through its predecessor's history as a leading affordable housing developer.

Throughout its history, the development group has preserved, redeveloped, and constructed over 16,725 units of affordable housing for families and seniors in both rural and urban areas, helping to address the critically low levels of affordable housing for underserved populations in the U.S. As part of Harmony Housing, the group is now closely aligned with an established owner / operator of similar housing with which the group has partnered in the past.


Wall Street Expects Homebuilders’ Shocking 2023 Rally to Continue Into Next Year

January 29, 2024
Norah Mulinda - Bloomberg

Homebuilder stocks are on pace for their biggest annual advance in over a decade, a remarkable feat considering how rising interest rates sent mortgage rates soaring in 2023. Now that bond yields are coming down, Wall Street expects that rally to carry over into 2024.

When rates climb, homebuilders typically feel the pinch. This year was an anomaly as tight inventory coupled with insatiable demand outweighed high borrowing costs. As a result, shares of homebuilders soared, with the group on track to finish 2023 at a record high. The sector is up 79%, far surpassing the S&P 500 Index’s 24% gain.

And regardless of whether the Federal Reserve orchestrates a soft or hard landing for the US economy next year, its expected rate cuts have homebuilders poised to continue to outperform the broader market, said Seaport Research analyst Kenneth Zener, who accurately predicted the sector’s performance for two straight years. Zener currently has a buy-rating on all but one homebuilder stock.


US 30-Year Mortgage Rate Slides to 6.67%, Lowest Since June

January 22, 2024
Prashant Gopal - Bloomberg

Mortgage rates in the US continued their slide, dropping to the lowest level since June and bolstering hopes for a housing rebound in the new year.

The average for a 30-year, fixed loan was 6.67%, down from 6.95% last week, Freddie Mac said in a statement Thursday.

Borrowing costs have fallen each week since peaking at 7.79% in late October. The decline is welcome news for would-be homebuyers who’ve been postponing purchases in one of the least-affordable housing markets on record. Many economists expect demand for homes to increase and mortgage rates to slip further as the Federal Reserve winds down its inflation-fighting campaign.


US Housing Market Shows Signs of Life After Mortgage Rates Fall

January 16, 2024
Katia Dmitrieva & Michael Sasso - Bloomberg

Even before the Federal Reserve has begun cutting interest rates, the mere anticipation of such moves is already thawing the US housing market.

A series of reports this week showed activity coming back to life: Housing starts surged to a six-month high, sales of previously owned homes picked up from a 13-year low and builder optimism was boosted by increased interest from prospective buyers. Meanwhile, Americans’ home-buying plans rose this month by the most in more than a year.

Reprinted courtesy of Katia Dmitrieva, Bloomberg and Michael Sasso, Bloomberg



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