Have you ever heard of Zillow®?
What a rhetorical question in the year 2023. Zillow is that shiny blue app on all of our smartphones that we frequent to check how much our neighbor’s home just listed for, browse homes within our budget in our desired school zone and, let’s be honest, where we go to dream home shop, BUT, did you know Zillow comes out with a consumer Housing Trends Report annually? I don’t know about you, but if I had to choose where I’d get trusted insight, it’s from sources with copious amounts of data. If we were extrapolating how often I check that blue app, I can’t fathom the amount of data Zillow consumes and processes. With this in mind, when Zillow’s New Construction Consumer Housing Trends Report for 2023 is released, it’s critical to dive into the weeds.
Zillow’s 2023 report revealed some interesting insights we should unpack.
- Customization matters to the 2023 new construction home buyer
- Builders need to fill the awareness and digital gaps for their customers
- New construction buyers are purchasing in existing communities at a higher rate than previous years
Let’s chat customization. Zillow’s Senior Economist Jeff Tucker notes, “The ability to help a customer design their dream home, with the perfect finishes and up-to-date design, is more essential than ever because buyers have many more options in the existing home market and are no longer being deterred by homes selling over one weekend with multiple offers.” Zillow notes, “the rising enthusiasm for customization may be the biggest trend uncovered among new construction buyers this year.” Chris Thomas Custom Homes is thrilled about this news, as it is a truly custom experience from start to finish and is seeking a truly custom client. What Chris Thomas Homes is not is a builder that will only build certain floor plans, in specified developments, and leaves the final few details to the buyer. Chris Thomas means custom. “In 2022,” Tucker says, “new construction buyers were really attracted by the chance to customize a home throughout its construction process, rather than looking for a completed home to move into right away, which was more common in 2021.”
Image is owned by Zillow.
Don’t underestimate the awareness and digital gaps that exist for customers. Zillow explains in its report, “among new construction buyers who didn’t initially consider newly built homes, 71% cite not being aware of any in their desired location as a reason why.” There is a clear gap in awareness that builders must work to eliminate. Digital tools including up-to-date websites, listings, social media presence and more, should be implemented to fill the void potential buyers have as they begin their search. Zillow urges “buyers are increasingly relying on digital tools to research and shop for new construction.” Builders that ignore this increasing reliance of consumers on these digital tools will be left behind, and unfortunately their consumers may miss the opportunity to partner with the perfect builder for them. Chris Thomas Custom Homes has revamped its website to increase ease of navigation, its available lots and homes are current, and contact with the office has never been easier by phone, email, Facebook Messenger, or Instagram DM.
Location matters. A surprising insight from the report explained: “33% of new construction buyers made their purchase in existing communities.” This gradual shift may be due “to a limited supply of existing homes for sale in good condition.” Did you know that Chris Thomas Custom Homes does not exclusively build in new development neighborhoods like other builders? In fact, you could choose to build on a lot owned by Chris Thomas Custom Homes or your own. As long as the project fits the geographic limitations of Lake Granbury and surrounding areas, and is a right fit for both Chris Thomas and its customer, the community is up to YOU! Additionally, its likely that this shift comes from the desire for community. “Buying an existing home typically means moving into an established neighborhood. Since that’s not always the case with new construction projects, many buyers have put an emphasis on shared amenities and a sense of community,” Zillow report notes. In fact, “These new construction amenities jumped 15 percentage points in importance over a four-year period, reaching 53% in 2022” and “a similar trend line rose for buyers who wished to be close family and friends. This preference rose 13 percentage points in importance over a three-year period”.
Image is owned by Zillow.
There you have it folks.
Zillow’s 2023 New Construction Consumer Housing Trends Report offers valuable insights into the evolving preferences of new construction home buyers. The report highlights the growing importance of customization, as buyers seek the opportunity to design their dream homes throughout the construction process. It also emphasizes the need for builders to bridge the awareness and digital gaps by utilizing digital tools to enhance customer engagement. Furthermore, the report reveals a shift in location preferences, with buyers increasingly purchasing homes in existing communities for a sense of community and access to shared amenities. Chris Thomas Custom Homes stands out as the ideal builder, providing a truly custom experience, leveraging digital platforms to enhance communication, and offering flexibility in location choices. By aligning with the trends identified in Zillow’s report, Chris Thomas Custom Homes is well-equipped to cater to the evolving demands and preferences of new construction home buyers in 2023 and beyond.
All information quoted and images are owned by Zillow.