After the recent year or so in a sluggish market, custom home builders are making strides in meeting the expectations and desires of their buyers. While recuperating from a slow housing economy, custom home builders are finding solace and increasing sales by giving buyers what they want in the form of upgrades and eco-friendly features.
Large national companies also consistently provide consumers with attractive amenities, but they are finding it more difficult to meet the demands of buyers who yearn for “greener” options and inexpensive homes. As the laws of demand in a market dictate, both custom home builders and large national companies are attempting to “give people what they want.”
Custom home builders are accommodating the desires of their buyers by offering personalized options in new homes. Outdoor living options are a high priority in the minds of many buyers and designers. While a barbecue grill and kidney-shaped pool have traditionally been the standard, buyers are now opting for outdoor kitchens, kid-friendly pools, putting greens, ramadas, and even a few backyard skate parks. Designers say kitchens are a key focal point indoors, showcasing convenience and beauty.
Custom home builders are trying to promote a particular lifestyle through gourmet kitchens, islands, and upgraded appliances. They maintain buyers do not want standard kitchen appliances, choosing instead to have upgraded appliances in their new homes. In custom homes, buyers are also requesting bigger and more elegant guest rooms and bathrooms. In response to buyers wishes, custom home builders are “going the extra mile” to please their buyers.
Arizona new home buyers also follow national trends in their desire to live an eco-friendly lifestyle, and Arizona custom home builders are meeting their demands. Installing energy-efficient appliances is commonplace, but custom home builders are doing more to accommodate buyers who wish to live a “greener” lifestyle. Many Arizona custom builders have adopted construction techniques that emphasize conservation of energy, water, and resources. Yet this type of construction for the large national builders (who build a majority of the new homes in metro Phoenix,) this means completely revising their business structure, which is driven by production. The large builders view this as risky at a time when revenue is down and sales are stalled.
National home builders recognize the environment-friendly market, and many already include more common features such as dual-pane glass and low-water bathroom fixtures. More extensive green construction, though, involves numerous other items: ductwork placed underground or in “conditioned” enclosures and “gray water” systems that reclaim used water from kitchens, bathrooms, and laundry rooms and use it to irrigate the landscaping. These features can be expensive, and national builders are skeptical as to whether enough buyers are willing to spend the additional money on a new home. It is estimated that “going green” increases a home’s price by approximately 5%. National companies are finding it difficult to justify any features that raise a home’s price, at a time when they are trying to clear out their excess inventory.
Markets are influenced by consumer demand. If Arizona’s home buyers continue to follow national and global trends in eco-friendly housing, national builders will benefit from “going green” and begin to see their sales increase. Custom home builders in Arizona are already reaping the benefit by giving buyers exactly what they want.
Sources: “Greater Expectations: Model Homes Build up Buyers’ Appetite for Upgraded Amenities,” Susie Steckner, The Arizona Republic: July 7, 2007.
“Going Green is a Hard Sell for Struggling Home Builders,” Glen Creno, The Arizona Republic: July 20, 2007.