The Housing Chronicles Blog: Toll Brothers
Showing posts with label Toll Brothers. Show all posts
Showing posts with label Toll Brothers. Show all posts

Tuesday, July 10, 2018

The Rise of the New Single-Family Rental Home: A Hedge Against Real Estate Cycles


My column for the July edition of Builder & Developer magazine is now posted online.

An excerpt:

In September of 2015, I wrote a column about the introduction of a new product type to the home building marketplace: the single-family home for rent, otherwise known as build-to-rent (B2R). At that time, just a few builders, including Lennar and Toll Brothers, had dipped their toes into these waters, but today it’s being seen as a clever hedge against the boom-and-bust real estate cycles which can test even the best-run companies.

To be sure, it’s not just homebuilders getting into this game. Wall Street-backed companies like Invitation Homes and AmericanHomes4Rent started the trend by buying up cheap, existing single-family homes in foreclosure back in 2012 when home prices were near their lowest, eventually assembling a portfolio of 200,000 units across the country. Even with that rapid growth, their holdings still represent just 1.4 percent of the estimated 14 million single-family rental homes, with most owned by small “mom and pop” operators.


Saturday, April 15, 2017

The Persistency of Architecture: Many Classic Ideas are Always in Style


On a recent trip to Italy to visit family living overseas, it was hard not to acknowledge the treasure trove of building methods and techniques started by the Greeks and Etruscans, refined by the Romans, and copied ever since throughout the world. Even in the residential subdivisions and urban infill projects of today, a variety of architectural elements and exterior elevations continue to borrow from ideas of the past.

After inventing a cold-method process for creating concrete around 200 B.C., the Romans went on to build roads, temples and palaces, many of which, when excavated, were still partly standing up to 2,000 years later or more.

But it was probably their expertise with arch-based structures which allowed them to expand, strengthen and defend their territory to a much larger empire with the use of bridges, aqueducts and gates. Due to the way in which arches transfer forces to the surrounding foundation, such structures tend to both strong and long-lasting, which is why you’ll still see remnants of arch-based aqueducts throughout Italy today.

These arches soon morphed into vault-type roofing and then domes, which, after being first used in the Roman marketplace, were eventually instrumental in creating many large interior spaces, including halls, temples and Catholic basilicas still standing today. Over time, other influences, especially from the Ottoman Empire, also imprinted their own design cues on the practical arch.

While our large public spaces of today often include obvious design cues from the Greeks and Romans with their rows of high columns and detailed porticos, the influence of the ancient, Renaissance, Baroque and Colonial periods of history continue to be used in many new homes today. 

In the U.S., because the country was colonized by so many different types of Europeans, colonial architecture can also include design cues from Germany, the Netherlands, Spain and France. When the industrial age made mass production and transportation more affordable over rail lines, various elaborate Victorian homes sprung up in even more modest neighborhoods.

For a luxury builder such as Toll Bros. today, which can invest in more exterior details than a entry-level builder, it’s not surprising to see such classic elevation choices in California as the Mediterranean, with its finished columns supporting multiple arches and accompanied by balustrade balconies. Or the Italianate, with a more under-stated, Baroque elevation characterized by several large stone walls in the front, an arched entryway, and a two-story foyer capped by a small dome.  Or even the Tuscan, featuring an earthier look including a wall of natural-looking stone but keeping the arched entry and the domed foyer.

In other locations such as suburban Pennyslvania, however, builders such as Toll pull from a more recent palette for their estate homes on one acre of more.  In this case, buyers might opt for the colonial-esque Williamsburg, with an elevation of small bricks with multiple gabled roofs. Or perhaps the Federal, which offers a similar, conservative look but with toned-down brick colors.Or even the Farmhouse, which evokes more of a Prairie-home look with a wooden cladding exterior, multiple gables and a covered porch.

Not surprisingly, most of these architectural design choices are generally matched to the local climate, but builders haven’t always brought in the outside as much as they do today. This is certainly good to see, as the ancient homes of Pompei and Herculaneum – both victims of the infamous Mt. Vesuvius eruption of AD79 --were often quite large, and almost always included a central, unroofed space including gardens, fountains and cisterns around which the rest of the home was built.

I think what struck me most about seeing these ancient communities was just how well these people were living two millennia ago without modern conveniences such as electricity, indoor plumbing in the home (that was generally reserved for the public bath houses) or central heating. Once the Roman Empire collapsed in the late 400s AD – and other than some clever inventions by royals in Britain and France --- it wasn’t until 1829 that we saw the re-introduction of commercial indoor plumbing, in this case at Boston’s Tremont Hotel.

And, whereas the City of Rome was the first city to boast one million residents as early as 133 B.C., it wasn’t until 1810 that the City of London was able to match those numbers. In those intervening years of the Dark Ages, the Renaissance and the Industrial Revolution, many great ideas about home building and urban planning were lost to history. It’s nice to see them being appreciated again.



Sunday, September 20, 2015

September column for Builder & Developer magazine now online

My column for the September 2015 issue of Builder and Developer magazine is now posted online.

For this issue, entitled "More Builders are Becoming Landlords" I wanted to review and discuss the nascent trend of builders such as Lennar and Toll Brothers building rental housing (including single-family homes) in order to broaden their business scope and provide steadier cash flow.

An excerpt:

According to recent U.S. Census data, in 2014 just under 65 percent of new home starts were for the traditional single-family home, with the balance mostly comprised of multi-family projects with five or more units.   And yet as recently as 2009, single-family starts stood at 80 percent versus just under 18 percent for larger multi-family developments, which means that the share of multi-family housing starts nearly doubled in just five years.

So if the share of new, single-family home starts is not returning to normal as originally planned, how are builders coping in this strange, new world?  For some, such as Lennar and Toll Brothers, by joining it.
To read the entire column, click here.

To read the entire September 2015 issue in digital format, click here.

Monday, March 2, 2009

Who are the most admired home builders?

Although the current state of the housing market makes it an odd time to be declaring the 'most admired home builders,' for the second year in a row, Fortune magazine compiled their list of 'most admired' companies based on input from businesspeople in all types of industries. Number 1 across all industries? A tech-related company called Apple, followed by Warren Buffett's Berkshire Hathaway.

In the home building sector, KBHome took top honors, followed very closely by Toll Brothers, which specializes in luxury housing. According to the press release issued by KBHome (which is helpful because it was hard to find on the Fortune Web site), the survey methodology was as follows:

FORTUNE’s survey partners at Hay Group, a global management consulting firm, started with some 1,400 companies: the FORTUNE 1,000—the 1,000 largest U.S. companies ranked by revenue; non-U.S. companies in FORTUNE’s Global 500 database with revenues of $10 billion or more; and the top foreign companies operating in the U.S. They then sorted the companies by industry and selected the 15 largest for each international industry and the ten largest for each U.S. industry.

The survey covers 64 industries: 25 international industries and 39 primarily U.S.-market industries. To create the 64 industry lists, Hay Group asked executives, directors, and analysts to rate companies in their own industry on nine criteria, from investment value to social responsibility. This year only the best are listed: a company’s score must rank in the top half of its industry survey.

In other words, if a builder isn't listed below, then 'better luck next year!'

Following are the Top 5 'most admired' as well as the next 'contenders.'

Most Admired
Company Industry Overall score
1 KB Home 6.58
2 Toll Brothers 6.53
3 Centex 6.24
4 Pulte Homes 6.06
5 NVR 5.71


Contenders
Company Industry Overall score
6 D.R. Horton 5.09
7 Ryland Group 4.89
8 Lennar 4.70
9 Hovnanian Enterprises 3.84
10 Standard Pacific 3.45

Finally, Fortune also compiled a list of 'least admired' companies in various sectors, which you can find here.

The survey will be published in the March 16 edition of Fortune magazine.