Toll Brothers, a luxury home builder focusing on high-end markets in California and New York, reported a second quarter revenue of $1.2 billion while analysts predicted $1.04 billion. Business Insider staffer Bob Bryan takes a look at the Toll Brothers strong earnings as well big problems that they still see facing the housing market.
Robert Toll, executive chairman, said the fundamentals are in place for the market's slow but steady growth. He also acknowledged that not enough homes are being built to meet the demand. This impacts multiple demographics outside of Toll's typical clientele:
Toll also said the number of houses completed in the future would need to increase to allow millennials to access homes. New home buyers entering the market typically moves people already in first-time homes up to larger houses, supporting luxury builders like Toll Brothers.