Rising U.S. apartment rents are pushing apartment dwellers to become homeowners, to the benefit of leading homebuilders Lennar (LEN) and Toll Bros. (TOL), Investor’s Business Daily reported.
Since 2009, apartment rents have risen steadily as vacancy rates have climbed. The average asking rent was $1,061 a month in 2011, up from $1,032 in 2010 and $1,016 in 2009, according to IBD.
Lennar and Toll Bros. reported profits in fiscal 2011. Toll Bros reported a decline in 2011 revenue but Lennar posted a slight gain in revenue, reported IBD.
Both Lennar and Toll Bros. are expected to post solid profit gains over the next three years, IBD reported.
LEN and TOL are Cabot Top Ten Trader stocks.