The first homebuilder initial public offering (IPO) since 2004 can only be described as a huge success. Tri Pointe Homes Inc. (NYSE: TPH) upped its planned offering of 11.7 million shares in a price range of $14 to $16 a share to 13.7 million shares priced at $17 this morning.

The company raised $233 million in the IPO, which it said it plans to use to acquire land. Tri Pointe currently builds houses in California and Colorado. Another homebuilder, Taylor Morrison Home Corp., also has filed to raise $250 million in an IPO.

Demand for new homes is driving the new players. The National Association of Homebuilders (NAHB) estimated that 2013 demand for new homes would reach 650,000, up 22% from 2012, though still well below what the NAHB calls a “normal” rate of 1.3 million new homes a year.

Tri Pointe is controlled by Barry Sternlicht’s Starwood Capital Group LLC, will own about 45% of the company’s stock following the IPO. Sternlicht-controlled Starwood Capital Trust Inc. (NYSE: STWD) and Starwood Capital Group recently paid $1.05 billion for distressed property firm LNR Property LLC.

Tri Pointe’s shares are up nearly 14% at $19.36 in the first hour of trading today.

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