Segmentation Strategies May Help Builders and Developers Best Predict Buyer Demand

Many publicly traded home builders have rolled out strategies to attract entry-level homebuyers over the past two years, while other builders are expanding their brands to court retiree buyers.

According to John Burns Real Estate Consulting's demographic research, the numbers of first-time and retiree buyers are rising, while the number of move-up buyers is dipping, referred to as a barbell of future home demand.

While projected entry-level and retirement demand is strong, those markets can still become oversupplied, which is why builders and developers build a variety of homes targeted at different consumer profiles within each segment.

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