Karl E. Case’s recent OP-ED piece in the New York Times offers a contrarian view from today’s headlines about the value of home ownership. He makes several good points about why home ownership still makes sense. A good read for builders and manufacturer’s of building materials.
A recent article in the WSJ shows how consumers are shifting their spending away from improving their homes to purchasing high tech toys. Retailers like Depot and Lowes can embrace this shift by featuring the growing number of technology products that they carry. There’s no reason for consumers only to think of Best Buy for technology. Perhaps a “Technology Days” promotion or even their own Geek Squad would gain these sales. They also should more actively reach out to early adopters of technology like the readers or Dwell and Wired magazines.
Existing home sales showed a 7.6% increase to an annual rate of 5.77 million homes in April. Existing home sales are expected to continue to outpace new home sales growth until the employment level improves. Building material manufacturer’s should continue to focus on the remodel and repair market and pay special attention to those fixing up their homes for resale and that key period of the first six month’s after a new home owner moves in. Read the article in the WSJ.
Home prices are down 60% in Las Vegas. There are 9,517 brand new unsold homes. 5,600 homes were repossessed in the first quarter of 2010. And yet builders are working on 1,100 more new homes and looking for land to build more! It makes no sense yet it’s happening. What are you doing as a building material manufacturer to be part of this opportunity? What other unlikely markets are showing activity? Read the whole story in the New York Times.
While reading a review of Meghan Daum’s new book, “Life Would Be Perfect If I Lived In That House” in the New York Times Book Review, I came across an interesting fact. After married couples, single women are the nation’s largest group of first time home buyers.
How many builders and building material manufacturer’s are targeting this important market? Not many from what I can see.
No matter how bad the economy seems, people still need a place to sleep. Two recent reports show that they may have had enough of doubling up or living with mom and dad. Apartment rents are rising due to increased demand as reported in the Wall Street Journal. Also The New York Times reports that home sales rose significantly in February. Both are good signs for an uptick in construction and remodeling to follow soon.
Homebuyers are now using apps from IPhone to aid in their house hunting. It’s time for manufacturer’s to offer their own apps to aid home buyers. For example checklists on energy or features could help differentiate homes with your products and encourage future upgrade sales. Read more in the WSJ
