There is some concern among economists that the red-hot apartment segment is getting overbuilt, but that isn’t stopping two of the largest U.S. home builders.
The Wall Street Journal reports that home builders Toll Brothers Inc. and Lennar Corp. are “redoubling their push into the rental-apartment market. Toll Brother’s plan is focused on the Boston-to-Washington, D.C., corridor. An amount of up to $300 million in equity investment is set aside for this division of the company.
Meanwhile, rival Lennar Corp. announced in the summer that “it has recruited sovereign-wealth funds and institutional investors to create a $1.1 billion fund for building and holding apartments.” The company plans work in 25 major U.S. markets, and intends to expand the fund’s equity to $2 billion within a year.