Home prices and mortgage rates are high but haven’t hampered demand for what Toll Brothers calls its “luxury niche.” That niche is made up of empty nesters, rich millennials, and wealthy buyers who are inoculated from housing market swings.
“Demand for our homes continues to be supported by our affluent customer base,” Toll Brothers chief executive and chairman Douglas Yearley said in an earnings call on Wednesday.
“Over 70% of our business is luxury move-up and empty-nester, which serves a wealthy cohort that has benefited from years of home price and stock market appreciation. The remaining 25% to 30% serves the more affluent first-time buyer, many of whom are older millennials buying their first home later in life when they have higher incomes and are more financially secure.”