In a segment we’re calling Friday Round Up we gather the most important and interesting stories from around the web as it pertains to home building.
Home Builders Are Among Ameria’s Fastest Growing Companies
After several tough years, America’s builders are back. Real estate in America has turned around to such an extent that four of the fastest growing companies (Standard Pacific, M/I Homes, Toll Brothers, and Lennar) in America are home builders, while another five are building materials companies (Eagle Materials, Patrick Industries, PGT, Caesarstone Sdot-Yam, and Deltic Timber). The average revenue growth for the four builders on this years list was 37.25%, above the overall average revenue growth of Fortune‘s 100 Fastest Growing Companies of 33%.
The New American Home 2016 – NAHB’s official show home of the IBS
Source: The New American Home 2016
The 2016 home, the 33rd edition in a series, is being built in the foothills of Henderson, Nevada. At 5,200 square feet, this contemporary, multigenerational “Desert Elegance” home is designed for gracious living and entertaining and will offer spectacular views of the Las Vegas Strip. Built to the National Green Building Standard, TNAH will feature a flexible floor plan that is open, light, and spacious, incorporating innovative low-maintenance materials, healthy home features, cutting edge technology, energy efficiency, and sustainability.
The Unite States of New Home Construction
Source: Coyne College
Single-unit housing represents 634,597 of the total 1,046,363 permits issues in the United States in 2014. Homes in the U.S. are selling at the highest rate since February 2007. Median home prices climbed 6.5 percent over the past 12 months. Let’s take a look at each state’s new home construction numbers.
U.S. Housing Starts Fall 3% In August
Source: Builder Online
The Wall Street Journal’s Anna Louie Sussman and Eric Morath report on this morning’s starts numbers, which show the home building industry declining 3% month-over-month, as starts on both single-family and multifamily both fell.
All told, starts reached a seasonally adjusted rate of 1.126 million last month, below economist expectations of 1.18 million. And yet, new applications for permits rose 3.5%, to 1.17 million, up from July’s 1.13 million, beating economist expectations of 1.15 million.
Despite this month’s slip, housing starts were 16.6% higher in August than a year ago, and permits were up 12.5% from a year ago.
Five Design Attributes Guaranteed To Wow Gen Y
Source: Builder Online
- The most important thing Gen Y buyers care about is functionality. Everything should serve a purpose. From overhead storage, to… tech hubs in the laundry room, to… a kitchen island and everything in between. Nobody wants to spend money on things they don’t use.” And they want to have confidence in the knowledge that every detail has been designed, not just done because “That’s how we’ve always done it.”
- Gen Y cares intensely about community. They want to step outside and feel community. Understanding the ‘why’ includes being able to articulate the story and purpose behind the history and design decisions to create community. What makes it a community? Is there a community garden, farm, park, or trail system?
- Modern Aesthetics
- Gen Y doesn’t want the clutter, the fluff, or the crown molding. They want simplicity. They’ve been influenced by Dwell, Design Within Reach, Houzz, Pinterest, modern prefab houses, and the Tiny House movement. Gen Y is influenced by brands they trust, so consider brand collaborations for model merchandising: West Elm, IKEA, CB2, Crate & Barrel.
- Let’s not forget, Gen Y buyers have been through a recession. Many see a house not as an asset, but as a burden. They don’t want a big house to maintain. They want something where they can just pack up and go, and not worry about the maintenance. It’s not about size, it’s about the space, and how concisely it’s designed.
- Convenient Sustainability
- For this group, health and wellness is the new status symbol, and they expect their homes to reflect this value.
- The Gen Y buyer grew up with technology, making them more comfortable with digital electronic systems than any previous home buyer group. But they don’t expect any setup or troubleshooting problems, so technology needs to be configured, integrated, low maintenance and ready to perform.