Toll Brothers CEO Weighs In on U.S. Housing Market

The transcript discusses Toll Brothers' success in the luxury home market, highlighting their strong brand, strategic locations, and diverse offerings. It compares the current housing market to past booms, noting strong fundamentals and limited supply. The impact of global factors and foreign buyers is minimal, with a focus on California's pricing power and East Coast land challenges. Labor market improvements are noted, with no significant delays in construction projects.

What factors contribute to Toll Brothers' success in the luxury home market?

• High volume of sales

• Great brand and locations

• Low-cost materials

• Government subsidies

How does Toll Brothers' resale value compare to other brands?

• It is lower than most brands

• It is comparable to Porsche

• It is declining

• It is not a focus for the company

What is a key difference between the current housing market and the mid-2000s boom?

• Mortgage money is easier to obtain now

• Current market has strong fundamentals

• Current market has bad fundamentals

• There is an oversupply of homes now

What percentage of Toll Brothers' buyers are foreign nationals?

• 4%

• 25%

• 50%

• 10%

What is a challenge Toll Brothers faces in the East Coast market?

• Difficulty in finding and entitling land

• Lack of demand for luxury homes

• Excessive labor costs

• High competition from local builders

How does Toll Brothers manage labor challenges in their projects?

• By reducing project sizes

• By managing cost creeps effectively

• By hiring unskilled workers

• By delaying projects

What strategy has Toll Brothers employed for growth west of the Mississippi?

• Increasing foreign buyer focus

• Reducing operations in the East

• Expanding active adult communities

• Focusing on low-cost housing