"America's Luxury Homebuilder continues to rely on its move-up, active adult, and luxury segments and their pursuit of the home of their dreams to navigate a languishing housing market, where other large, medium, and small enterprises have been largely hampered by affordability constraints, economic uncertainty, low consumer confidence, and stubbornly high interest rates. This product-mix strategy helped Toll Brothers grow its community count, maintain high margins, and keep incentives relatively low in 2025."
"The builder, not expecting any market improvements next year, plans to stick with this playbook to remain relatively strong in a weak market that's hammering margins for other operators. Toll Brothers also plans to close its more than $300 million sale of Toll Brothers Apartment Living to Kennedy Wilson Holdings in the first quarter of next year. The transaction represents a calculated, focused reset, with executives planning to reinvest much of the proceeds in the core homebuilding business."
Toll Brothers targets affluent move-up, active-adult, and luxury buyers who are less affected by high prices and interest rates, enabling sales resilience. The company used its product-mix strategy to increase community count, preserve high margins, and keep incentives low in 2025. The builder expects continued market weakness and plans to maintain its focus on higher-end segments rather than reposition for entry-level demand. Toll Brothers plans to close a more than $300 million sale of its apartment business to Kennedy Wilson and intends to reinvest much of the proceeds into core homebuilding operations.
Read at www.housingwire.com
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