Homebuilders Look to Get Ahead of Demand

A Toll Brothers home under construction in Randolph, N.J. Photograph by Emile Wamsteker/Bloomberg

Megan McGrath, an analyst at MKM Partners who covers homebuilders, used to have a photograph in her office that showed a sign in Las Vegas that advertised: “Buy one house, get one free.” For McGrath, the ad was a reminder of what she calls “the peak of the awfulness” in the industry she tracks. After so many years of pain, McGrath says things are looking up for homebuilders and has a “buy” rating on almost all of the industry’s largest players, including Toll Brothers, KB Home, and Lennar.

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