We’ve performed well over 500 market studies over the last 17 years. Builders always ask us, “who should we build for?”
Millennials are on the cusp of surpassing Baby Boomers as the nation’s largest living adult generation, according to population projections from the U.S. Census Bureau. As of July 1, 2016 (the latest date for which population estimates are available), Millennials, whom we define as ages 20 to 35 in 2016, numbered 71 million, and Boomers (ages 52 to 70) numbered 74 million. Millennials are expected to overtake Boomers in population in 2019 as the numbers for this age cohort grows to 73 million and Boomers decline to 72 million. FACT TANK Richard Fry, Pew Center
So, understanding the demographics is critical because the Millennials have been late to the new home buying game in comparison to the Boomers and Generation X (ages 36-51). More recently, the Millennials are forming households and looking to purchase new homes.
In some cases, if you build 1st floor masters the 50 plus will buy at higher prices and at a faster pace. In other cases, if you build 2nd floor masters the 50 minus demographic or Millennials and Generation X will purchase at lower prices and slower pace. Having a full understanding of who you’re building for, what you’re building, what you’ll realize in price, and how fast you’ll sell out is essential to maximize your profit.
Builders, let’s talk about how our Advisory services can determine positioning, price, pace, and product for your community.
Connect with New Homes CEO Tom Skahen