As a follow-up to last month’s column, here are a few more key findings from the consumer research survey conducted this summer of active home shoppers. The research was conducted for BDX, a new-home digital marketing company owned by a consortium of 32 of the largest home builders in the U.S., to set the baseline for a new advertising campaign to drive greater awareness of and preference for new homes.
Based on the way respondents indicated their likelihood to consider a new home or an existing home, the study revealed that 46 percent of home shoppers prefer existing, 19 percent prefer new, and 35 percent are indifferent or show no clear preference.
The top five considerations for shoppers provide a clear focus on what builders must do to convince them to buy new over existing. At the top of the list: quality of construction. To convert those who prefer new and to convince more to prefer new, builders need to reinforce the advantages of new and develop the capability to frame the understanding that the long-term cost of owning an existing home is much higher than the differential in initial price.