Pulte (PHM) To Build New Del Webb Community In Summerville

PulteGroup Inc. (NYSE:PHM) has announced plans to introduce yet another new active adult community this month. Located in Summerville, SC, the community will be called Del Webb Nexton. This marks Del Webb’s second community in the greater Charleston area and is expected to be opened in Feb 2018.

Del Webb Nexton will accommodate 1,000 homes over 350 acres, with prices starting from mid $200s. The new community particularly aims to match the lifestyle and housing needs of 55+ residents. The new community will offer facilities like a large clubhouse, with indoor and outdoor pools, walking and biking trails, tennis and pickleball courts. The homebuyers will also enjoy easy access to shopping and dining destinations. Del Webb Nexton will also have a full time lifestyle director who will help the active adult resident to plan activities, outings and other well being programs.

PulteGroup’s Del Webb brand builds active adult (retirement) communities for those aged 55 years and above in the U.S. The active adult space constitutes roughly a third of Pulte’s business. This is the fastest growing housing segment due to the increasing aging population in the country. The brand has been outperforming all other brands of Pulte for the past few quarters. Earlier this month, the company revealed its plan to build another Dell Webb Community in Wilmington, NC, called Del Webb Wilmington. This marks Del Webb’s first community in Wilmington and is expected to be opened in Oct 2016. (Read:Pulte (PHM) to Build New Del Webb Community in Wilmington)

Housing sales are gaining traction amid improvements in the economic environment and employment picture. Given such a market scenario, PulteGroup’s development of a new community appears well timed.

PulteGroup currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Better-ranked stocks in the construction sector include Masco Corporation (NYSE:MAS) , TopBuild Corp. (NYSE:BLD) and GCP Applied Technologies Inc. (NYSE:GCP) . While TopBuild sports a Zacks Rank #1 (Strong Buy), Masco and GCP have a Zacks Rank #2 (Buy).