Builders Cater to the Move-Up Buyer
May 4, 2015
More than 100 homebuilding companies on a list of the top 200 firms nationwide say they're targeting move-up or second-time buyers, according to this year's Builder 100/Next 100 data by BUILDER magazine. Move-up housing has become the most popular product type of housing -- with more builders favoring it over entry-level, luxury, active-adult, and other housing categories.
During the last recession, officials with Quadrant Homes, based in Seattle, veered away from starter homes to turn the focus to buyers who were looking to trade up. The builder sought to appeal to move-up buyers such as by offering amenities like 9-foot ceilings, oversized windows, and outdoor living spaces, as well as trying to keep home prices as low as $430,000 – a sweet spot, it says, for many move-up buyers. "The research tells us that this market in years to come will be strong, and will appreciate a premium builder," says Ken Krivanec, Quadrant's president.
Likewise, many other builders see growing profit margins by catering to the move-up buyer, who tend to have more money to spend as they look to make a move. However, that doesn't mean that builders are completely shying away from entry-level houses, although the number has drastically decreased. BUILDER's survey shows that more than 30 firms of the top 200 nationwide are building homes targeted to those who are looking to enter the housing market.
Source: "Move-Up Housing Dominates the Builder 100 List," BUILDER (May 1, 2015)
Updated: August 07, 2020