The numbers are looking up for the 55-plus housing market. But there’s a question of how long these numbers will be available, according to the National Association of Home Builders (NAHB).
At a briefing during the group’s annual conference, NAHB Vice President of Survey and Housing Policy Research Paul Emrath was upbeat about the recovery of housing targeted toward seniors and baby boomers. He noted in particular that builder confidence in new, single family homes in the 55-plus market tripled in the third quarter of 2012 as compared to the same time in 2011.
“Everything is up, year-over-year,” Emrath said. “It’s an indication that we’re starting to dig out of the hole we fell into in 2009.”
In NAHB’s forecast, boomers and seniors are projected to grow their share of the market over the next few years. By 2020, the group expects the market share of U.S. households in the 55-plus age bracket to grow more than four percent, to 46.6 percent.
Yet Emrath warned that the future of NAHB’s reporting on boomer and senior markets is in peril because the Census Bureau changed the way that they collect generational information.
“The forecast that you just saw is at risk right now,” Emrath said. “When I get back to Washington, I’m going to spend a lot of time writing letters trying to persuade [HUD and the Census Bureau] that they were misguided in removing these 55-plus questions from their surveys.”
In addition to the economic data, Emrath hit a few of the boomer and senior highlights of NAHB’s new consumer preference survey, called What Home Buyers Really Want. Continue reading »
By Erica Christoffer, Multimedia Web Producer, REALTOR® Magazine
Developers of multifamily homes should be relishing in the fact that demand is incredibly strong. But in reality, developers are struggling to build new apartments because financing is so hard to come by.
The National Association of Home Builders is forecasting the construction of 208,000 multifamily residences in 2012, which is well below the 350,000 units needed to maintain balance in the market, according to Sharon Dworkin Bell, NAHB senior vice president for multifamily and 50-plus housing.
Bell, who spoke on a panel during the NAHB International Builders’ Show in Orlando last week, said that the demand for new apartments will only continue to grow as the economy improves and job seekers find employment.
What’s more, the young adult population entering the job market today is one of the largest in U.S. history, which is creating even more demand for multifamily real estate, said Ron Witten, president of Witten Advisors, a market research firm that works with multifamily developers.
“As an industry, we can’t keep up with this demand right now. This is likely to put inflationary pressure on rents, resulting in higher rents for consumers,” Witten said.
The multifamily market suffered a serious slowdown in production from 2008 to 2010, and now the lack of credit to finance the development of new apartments is likely to cause a supply and demand imbalance, according to the NAHB panelists. Continue reading »
By Erica Christoffer, Multimedia Web Producer, REALTOR® Magazine
Single-family home starts were at a 40-year-low in 2011, with just 429,000 homes built. That’s also a 75 percent decrease from a peak of 1.7 million starts in 2005.
But today’s new-home buyer may surprise you.
Let’s start by looking at a few builder and consumer statistics presented during the International Builders’ Show in Orlando Thursday.
The average start size increased from 2,381 square feet to 2,522 square feet and the average sales price rose from $264,900 to $274,400 in 2011.
New homes have more amenities, too. More houses built in 2011 had four or more bedrooms, three or more bathrooms, three-car garages, finished basements, patios, and two stories.
Is the buyer profile becoming clear?
“It’s sort of counterintuitive to what we’re hearing and reading about consumers,” said Rose Quint, assistant vice president of research with the National Association of Home Builders. “The answer is in who is able to buy.”
In the tightened lending environment, buyers have had to be a “superstar” qualifier, says Quint, with at least 20 percent down, a high credit score, well-documented income, and proof of established employment history. Continue reading »
By Erica Christoffer, Multimedia Web Producer, REALTOR® Magazine
When considering your Web presence, ask yourself this: Am I interacting with my client base?
If the answer is no, or not quite sure, here are eight tips from the International Builders’ Show Thursday morning session on unleashing the sales power of your Web site (presented by Scott Stroud of Builder Radio Media Network, Rick Storlie of New Home Sales Coach, and Erik Cofield of Buildtopia and Builder1440).
1.) Don’t pay a developer to run your Web site. Make the move to WordPress. You’ll save oodles of dollars, have the ability to update more frequently, and ensure more control over your site.
2.) Start blogging… A LOT! A blog is all about human interaction. Blog regularly and promote your posts via social media.
3.) Stumped on what to blog about? Three ideas: progress of a design or building project, interesting client stories or profiles, and community news or events.
4.) Use negative feedback as an opportunity to shine. If you receive a complaint or unflattering comment, “turn it into a positive,” says Stroud. Respond with an apology and outline a solution. Negative comments can be relevant. Continue reading »
By Erica Christoffer, Contributing Editor, REALTOR® Magazine
For all those who have been burned by the economic downturn, the “Success Out of Ashes” session of the International Builders’ Show Wednesday provided some advice for getting back on track.
John Geoffroy, president of Atlanta-based Construction Data Control, was one of three panelists who shared how he has found success through 42 years of industry ups and downs.
Connect With Customers: Write cards or pick up the phone and call past clients – let them know you are still in business; let them know you are survivors.
Talk With Your Staff: Brainstorm ideas with your team and be creative. Consider diversification, such as refurbishing foreclosed homes. “There is an opportunity here for someone,” Geoffroy says. Continue reading »
What products, if any, have you found at the International Builders’ Show Expo that you are planning to integrate into your business right away?
“We’re looking at an alternative for composite cement siding. We are interested in what innovations have come about — second generation, so to speak.”
– Kevin Estes, Estes Builders, Sequim, Wash.
“Yes, I have found several. As a representative of a builder who is building the first LEED home certified in our marketplace, I’m looking for products that will add to this home and how I can get better get that message to the consumer and to other REALTORS®. I’m in the process of getting my Green Designation from the NATIONAL ASSOCIATION OF REALTORS®, but I have trouble verbalizing it to other people. But after sitting through a Dow slideshow about building green from affordable to million-dollar homes that was given by an architect, it helped my solidify how I can explain it to people.”
– Karolina Miller, Chase International, Incline Village, Nev. Continue reading »
By Erica Christoffer, Contributing Editor, REALTOR® Magazine
Whether you are working with a Baby Boomer, Gen Xer, or someone in the Gen Y age range, it’s important to know what your buyers wants in a home.
While age demographics are still a driving factor in the type of home your buyer is interested in, and three presenters at the International Builders’ Show Wednesday said there is a tie that binds – today, less is more.
Saying goodbye to McMansions, Mary Dewalt of Mary Dewalt Design Group, Steve Lane of Denver-based KEPHART, and Ken Perlman of Sullivan Group Real Estate Advisors outlined the driving demand behind each generation and what features they want in their downsized home in the session “From Wow to Now: What Today’s Home Buyers Really Want.”
Baby Boomers (age 45-65):
They don’t see themselves as getting older, and they don’t want to compromise their active lifestyles. Continue reading »
By Erica Christoffer, Contributing Editor, REALTOR® Magazine
In the world of architects, builders, and designers, the annual debut of the New American Home at the International Builders’ Show is an institution. For 27 years it has been the mainstay of the convention, the pinnacle for all things new, the height for which to reach – the cutting-edge, state-of-the-art, ultimate trend-setting home.
But this year there is no New American Home to tour at the show in Las Vegas. That’s because this year the realities of the economic climate have proven themselves heartbreaking once again.
The storm culminated with two blows against Adam Knecht, general manager of Domanico Custom Homes and builder of the 2010 New American Home. First, the original private financier dropped out in February 2009, just one month after construction began. Then, the tight lending environment made it impossible to secure adequate financing to finish the project. By October, construction was all together halted, followed by foreclosure in December. Thus, for the first time in the history of the program, the home was not completed in time for the show and proved to be a sign-of-the-times for the housing industry. Continue reading »
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