“Could Changing Buyer Needs Be Good News For New Home Builders?”
I’ve started working with a group of young investors. Although their business model is to buy, fix, and flip houses, the market at the bottom where they troll is hot. While looking for fresh opportunities, I found an approved, but as yet, unbuilt subdivision. Even in a depressed market like Waterbury, new homes sell for more than existing homes. So what is it that new homes have that buyers want?
New homes are more energy efficient. Studies show that over 90% of all homebuyers want Energy Star rated appliances. New homes have Energy-Star rated windows, and insulation in all the right places. Finally, buyers want ceiling fans. Running the central air all summer is not only expensive, but unhealthy. When it’s not sweltering, ceiling fans keep the air moving, so you can open the windows to let the fresh air in and the stale germs out.
Buyers want ample storage to keep the house organized, and the storage has to make sense. Today’s buyers want laundry rooms to hide the dirty laundry, linen closets in the bathroom large enough to hold comforters, and space in the garage for bikes and outdoors equipment. I have a listing with a laundry chute. The buyer’s daughter thought this was the greatest thing since sliced white and check out this cool storage system:
So if we know what buyers overwhelmingly want, then what can they live without? How about an elevator? It makes sense, since more buyers are interested in ranch homes, which are seen as more energy efficient than their double height entryway counterparts. Buyers want master baths with a useful tub, not just a shower stall. I always counsel my flippers to make sure there’s a tub in the house to accommodate a family with small, bath aged children, but this surprised me.
Finally, buyers are rejecting certain types of communities. They don’t feel the overwhelming need to live on a golf course, or in a gated community, and they don’t want to live in a high density planned urban development or mixed use community.
So why could this be good for new home builders? Because if buyers want what they want and they can’t find it in pre owned houses, building their own home, whether from stick or manufactured in a factory, may be the most economical solution.
- What do home buyers really want? (eyeonhousing.wordpress.com)
- Home Buyers Want Organized Homes And Laundry Rooms With Storage (prweb.com)
- Home Builders Catering to Home Buyer Wish Lists: Energy Efficient Homes (prweb.com)