In the postwar housing boom, Builder William Jaird Levitt's 17,000-house Levittownson Long Island and in Pennsylvaniacame to symbolize an era of mass-produced, look-alike homes. Though they made Levitt & Sons the nation's largest home builders, the Levittowns were sneered at by esthetes, spoofed by cartoonists, massively aped by other builders. His old image lingers on, but Levitt, now 60, has stayed at the top of the $25 billion industry by changing his whole approach to housing.
Cheaper in Clusters. Instead of monolithic developments, Levitt today has eleven neighborhood-size communities of varied styles and prices ($16,000 to $33,000) rising from Long...