A recent story from the New York Times suggests that developers, homebuilders and related trades are still waiting for their economic recovery to take hold. Click here to see the article in full.
Implications: I’ve heard testimony from many small contractors who turned away from the homebuilding business during the recession, and put their focus on home improvement and remodeling work to make ends meet until their more sizable and preferred projects start rolling again. According to this story, it might be a while before that happens, at least in most parts of the country.
As an alternative to building their new dream home, will consumers continue to seek ways of making their current residence the home of their dreams? From home theatres to home furnishings, from exotic landscaping to exquisite kitchen makeovers, there is ample evidence that people now look at their homes more as a place to live, rather than seeing it as a property to flip every few years.
Meanwhile, as this NY Times story indicates, those developers who are succeeding are going to very creative lengths to make it happen. From elaborate rebates to free cars with the purchase of a house… the new era of sales promotions and advertising tactics make this a fascinating category to watch.