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Pulte to Build New Del Webb Community in Tennessee

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PulteGroup Inc.PHM intends to build a new active adult community called Southern Springs in Spring Hill, TN. The community would be constructed under its Del Webb brand. This marks Del Webb's second community in Tennessee.

The ground breaking ceremony is expected to take place in Jan 2016. Official opening of the community has been scheduled for spring 2017. The community will accommodate 600 homes on over 300 acres of land.

The new community particularly aims to match the lifestyle and housing needs of baby boomers, who prefer to live close to family and friends, and enjoy various lifestyle choices. The new community will offer facilities like a clubhouse, tennis and pickleball courts, an indoor pool, and an outdoor resort-style pool.

Moreover, PulteGroup's Del Webb brand is a dominant builder of 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.

Housing sales are gaining traction amid improvements in the economic environment and employment picture. In fact, higher job numbers, a recovering economy, moderating home price gains, affordable interest/mortgage rates, rising rentals and a limited supply of inventory - all point to increasing momentum in 2016. Given such a market scenario, PulteGroup's building a new community appears well timed.

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

Stocks to Consider

Investors interested in the construction sector can consider The Home Depot, Inc. HD , TRI Pointe Group, Inc. TPH and Lennar Corporation LEN . All three companies carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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