Page 14 - GSABA Builder Brief February 2021 Issue

TRENDS
SIX SINGLE-FAMILY TRENDS THAT WILL TAKE OFF IN 2021
In the wake of COVID-19, builders and buyers hit the reset button
By Joe Bousquin | Originally published at builder.com
Home builders had already begun to pivot their focus heading into 2020. After years of catering to luxury and move-up buyers, many builders found the new religion of entry-level homes. The result was median new- home prices finally losing some of their air, flirting with $300,000 toward the end of 2019.
What a difference a year and a worldwide pandemic make. Instead of the smaller, more efficient homes that were ascendant just 12 months ago, today’s homes need form and function to serve the entire family. While more space, “Zoom rooms,”
and outdoor access are a few of the headline impacts of 2020, builders also say there’s been a fundamental shift in what home means to American buyers.
“People are realizing more than ever the fragility and expiration of life,” says Scott Acton, CEO of Las Vegas– based Forté Specialty Contractors, which focuses on custom, luxury homes. “They’re steadfast and determined to turn their residential dreams into reality. We see them chasing a feeling, one that is good, safe, and permanent.”
Erik Heuser, EVP, chief corporate operations officer at Scottsdale, Arizona–based home builder Taylor Morrison, sees the impacts of 2020 lasting well into 2021, and beyond. “You’re looking at a greater range of virtual home-buying options, healthy home features and products, earthy color tones, a desire for organized and orderly home spaces, and a favorable single-family rental market,” he says.
Here are the trends and outlooks that are shaping the home building industry heading into 2021.
ONE
Drive Until You Find Your Happy Place
Perhaps one of the biggest shifts in home building for 2021 is where people are willing and now able to live today. With the pandemic accelerating and cementing work-from-home in a way that few anticipated, the old maxim of “drive until you qualify” is being seen in a new light, as more workers are increasingly able to live anywhere.
TWO
Build-to-Rent Getting Even Stronger
The flight from cities that has caused so many builders in secondary markets to boom in 2020 will continue, which has also spurred the rise of single-family build-to-rent homes. That was a strong trend before the pandemic struck, and today it’s even more pronounced.
Taylor Morrison partnered with Christopher Todd Communities in 2019 to create two build-to-rent communities in Phoenix. Now, that business line is being fast-tracked to meet the changing demands in the market.
have decided to build in dream home locations where they’ve always wanted to live, but couldn’t commute from,” says Kim Hibbs, president of Hibbs Homes, which builds in St. Louis and Park City, Utah.
“People are moving out of the city to the suburbs where they can get more square footage and outdoor space,” says Marc Rousso, CEO of Seattle-based JayMarc Homes. “With so many people working from home, being close to employment centers is less important.”
That is true both for production builders, who are increasingly seeking tracts of land in tertiary markets, as well as custom builders, who are now seeing their customers’ aspirations limited only by their imaginations. “We have more clients who
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FEBRUARY 2021 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
With so many people working from home, being close to employment centers is less important.