Home Builder Growth Markets: Just Move to San Antonio, and Everything Will Be Okay

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...

KB Home Enhances the Design Experience with Envision

By Kevan Irsch

Since 1957, Los Angeles-based KB Home has been a top U.S. homebuilder, building thousands of homes for families each year.  KB Home has adopted an aggressive design center approach, offering state-of-the-art studio experiences for new home buyers.  This approach coincides with their build-to-order business model.  This model is based around freedom of choice for the buyer, and the design studio is a core part of KB Home’s plan to drive custom-minded buyers.  In August of 2005, KB Home implemented a comprehensive options selection tool, Envision, in four of its markets.  I spoke with Lisa Kalmbach, Senior Vice President of Design Studios for KB Home, and discussed KB Home’s successful experience with Envision at the recent 2007 Summit in Austin, TX.

Envision Delivers Immediate ROI

by Melissa Morman

Wow!  Since going live 2.5 years ago, Envision has matured into a stable enterprise application, and now over 20K buyers have become 'Envision Enabled'!  The best news is that the Envision Builders & Manufacturers are experiencing some great results - some that we theorized would be possible, and others that are unexpected benefits. 

Here are some highlights:

-- Options upgrade sales were initially reported with around a 10-15% increase, which in and of itself is exciting, as this delivers several thousands of dollars of margin to the bottom line. However, as builders have become more sophisticated in using Envision features such as packaging, we are now starting to see sales increases in the 30% and up range! As soon as we have hard data to share, we will pass it along, but suffice it to say that Envision has delivered on this very important metric. This accomplishment is starting to capture the attention of the guys who own the P&L in the builder organizations. In this time of reduced units, increasing the margin per home has become extremely critical. With just the sale of one or two additional electrical plugs, the Envision product is paid for!

-- One of our top five builders reported an increase in JD Power customer satisfaction design center scores from 8.5 to 10 (on a 10 point scale – yes, that is 100%!), a direct result of implementing Envision. While customer satisfaction is high, we are also receiving positive feedback from design center and purchasing personnel. Envision is helping them do a better job on a daily basis. 

-- Envision has many other benefits, which range from increased operational efficiency around internal data management, reduced design center appointment hours, and increased 'stickiness' with the buyer through the design/construction process. An engaged Envision buyer is more likely to stick with his contracted home and less likely to cancel, as he is very invested in the process. 

We are happy to announce the addition of two new builders to the Envision program: WCI Communities and Reynolds Plantation! This brings the total number of Envision Enabled builders to 23, representing a total number of annual home starts well over 150K. Seventeen of these builders are now live in various markets across the country.

Want to learn more? Just shoot us an email, and we will send you a login/password to enable 'members' access. We now offer an online demonstration of Envision every Friday at 10:00 CST, where we will take you on a guided tour of how the Envision product suite works. If you wish to attend, please contact us at builders@newhometechnologies.com. Let us know which Friday you plan to attend, and we will send you an invitation. If you are a manufacturer who would like more information on Envision, please contact us at engage@newhometechnologies.com.

Don’t forget about the upcoming Summit/07, our annual Envision users conference! The Summit is for all participating and interested Builders and Manufacturers. Mark your calendars for the eve of October 16th and all day October 17th!  To reserve your spot now, click here.