Builders May be Marketing More Services to Sell New Homes

As the housing market continues to struggle, builders are seeking demographic groups that represent potential buyers. Consumers in the 55+ demographic comprise one segment that might be willing to purchase a new home, if the price and the amenities are right. According to jointly funded research by the National Association of Home Builders and MetLife Mature Market Institute, up to 12% of consumers in this group plan to buy a home and about 26% are undecided about their future purchase plans.

This demographic also knows exactly what it’s looking for in a new home:

  • Either close-​in or outlying suburbs – 63%
  • Single-​story residence – 79%
  • Master bedroom on first floor – 75%

But offering these features alone won’t be enough to induce a potential buyer to sign a purchase document. The top reasons for buying a new home, for this age group, include lower-​maintenance living, closeness to family, and lower cost of living. Builders can tap into consumer aspirations by marketing desired services to potential homeowners and they may want to consider joining forces with local service providers to achieve sales. This strategy might be especially effective in new developments that are not specifically planned communities. Here are the top home and community services that consumers ages 55+ would like to enjoy:

  • Outdoor maintenance service 52%
  • Exterior home maintenance 50%
  • Partial housekeeping 48%
  • Major home repair service 47%
  • Minor home repair service 47%

As the U.S. population continues to age and older consumers seek assistance, builders who can deliver the promise of maintenance services along with a new home stand to gain market share.

[Source:  55+ Housing: Builders, Buyers & Beyond, MetLife Mature Market Institute, 2009] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.