Toll Brothers' profit misses estimates due to higher costs

NEW YORK, May 22 (Reuters): US luxury homebuilder Toll Brothers Inc's second-quarter profit missed Wall Street estimates on Tuesday, hurt by higher costs due to rising prices for building materials and shortages of land and skilled workers.

Costs rose 20.5 per cent to $1.29 billion in the quarter, while orders, an indication of future revenue for homebuilders, rose 6.2 per cent to 2,666 homes.

"Home ownership and household formation rates are increasing, while supply remains constrained," Executive Chairman Robert Toll said in a statement.