New House Construction Given New Push
New house construction is expected to improve with the move of home builders around the country to turn renters into buyers of homes. By gathering contact information of renters across different areas, they attract renters through different marketing strategies.
According to Dan Klinger, K. Hovnanian American Mortgage president, construction companies are going back to basics as the market for the construction industry gets tougher as time passes by. He further adds that talking to renters and reaching out to them is one of the most basic strategies in the market.
Also, home builders are redesigning their houses by making them smaller and more affordable than before, this move is expected to attract first-time home buyers. Home builders are now faced with a lot of other challenges, such as fears from home buyers that prices may even fall further, their inability to get enough credit for new house construction, foreclosure cases, and the insecurity of almost all jobs in the country now. All these problems have hurt the construction industry badly.
According to Mid-America Apartment Communities, the number of people who are leaving their houses for rent to buy new homes have already fallen by around 31 percent, compared to a year before. With around 89 million occupants of properties or apartments for rent, home builders still see positive light and sense that people would still opt for a new house than stay in a house for rent.
According to Jeffrey T. Mezger, president and chief executive officer of KB Homes, the renting market is an untapped one. There are a lot of opportunities to sell new homes, so this is a very important area that home builders are currently exploring.
The company, KB Home, has recently redesigned its website to give more emphasis on savings and good deals for those interested to buy homes. According to Mezger, this strategy has been very useful in their marketing strategy. The company is also more flexible to customer requests now, such as specific requests in floor plan. This strategy has improved their performance in the market.
They also hold seminars in which they teach renters to design their houses and make a nearly customized house. This helps new house construction companies attract buyers. Further, KB Homes work with Equity Residential for its Rent with Equity Program.
