by Blair Kuhnen
Why do builders seek to build in markets where there is strong job growth? It’s demand for housing, of course. Are any of you looking to expand into Detroit or Cleveland? Probably not. Does it make sense to do expand into markets with more demand than supply? Absolutely! Easy to say, but hey, it’s not exactly easy to pull up the stakes in Detroit and move to San Antonio.
What if you could find above average growth right where you are while driving higher customer satisfaction? It comes down to segmentation. There are segments that are growing faster than the average, and will for years to come. These are segments where new housing demand is strong and will stay strong. Here are just a few to consider: Hispanics, Baby Boomers, Asians, and Europeans (with all those inflated euros). Some segments are niches. If you have one of these in your local market, great. Start tapping into it. Two of these growth segments are nationwide and available to every homebuilder.
Hispanics and Baby Boomers are here and now. They are buying and will do so for decades. You need to get your fair share. You don’t have to move, but you may need to change your marketing, your advertising and even your product. Let’s take them one at a time. Continue Reading...