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Week of September 8, 2003

Front Page

President's Message

* Housing Advocates Are Prevailing in Court on Policy Issues

Housing Forum

* Solving the Housing Crisis — California's Oldest Permanent Emergency

Housing Politics

* NAFTA Panel Questions Basis for Tariffs on Canadian Lumber

Regulation

* HUD Web Site a Clearinghouse for Regulatory Concerns

Housing Finance

* Builders Working to Step Up Participation on State Financing Boards

Small Builders and Remodelers

* Remodeling Index Finds a Big Upswing in the Second Quarter
* Home Warranties Open the Door to Future Business Opportunities

Business Management

* The General Liability Insurance Crisis: Seven Strategies for Builders

Multifamily

* Fully Automated Garage a First for U.S. Multifamily Buildings

Commercial Builders

* Commercial Buildings Go 'Green' With Sustainable Design

Seniors Housing

* Research Is Essential For Targeting the Active Adult Market

Member Dividends

* NAHB Advocates Help Make a Bad Land Plan Better

Building Products

* Douglas Fir Is Pretty Hard for a Softwood

Building News Coast To Coast

Association News & Events

* Survey Aimed at Improving Arbitration Services
* Boost Your Marketing Through These Awards Programs
* Calendar of Events

NBN Back Issues

 

Research Is Essential For Targeting the Active Adult Market

Given the complexity of the seniors housing market that is shaping up over the next 15 years, builders should be rightfully concerned about reducing the risk of missing the target, particularly since active adults want to see it before they'll buy it. That’s where the research comes, an especially important ingredient in building successfully for independent older adults.

Research can help with assessing the market, identifying opportunities, differentiating the product, developing and refining the product and troubleshooting. It can also help to build the confidence of the builder team and lenders, not to mention enhancing your credibility with consumers and subs.

Research enables builders and their team members to answer pressing questions; assess customer expectations and perceptions; evaluate customer satisfaction; determine features that consumers value; assess lifestyle issues that are important to prospective buyers; and test floor plans, options packages and marketing messages.

In order to effectively analyze opportunities within the active adult market, a combination of quantitative and qualitative research is needed. Research that looks only at what already exists or only at the demographics of a particular market risks missing the opportunities that are inherent in any emerging market.


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Conventional market feasibility alone is limited by the unique nature of the market — older persons don’t neatly fit in to employment or earnings classifications. Assets beyond home equity can be difficult to measure. And, because there typically is little urgency for these buyers to move, just because prospects fit your profile doesn't necessarily mean that they are likely to purchase a new home from you.

Understanding the psychological factors that influence consumer motivations is key, and that means understanding what makes a mature buyer decide to move and decide that they are entitled to a new home.

To reach their target audience, successful builders for active adults need to learn several things about their prospective customers:

  • Their hopes and dreams for retirement
  • How they view their lifestyle, especially as it relates to time spent at home and how they use their home
  • What’s most important to them in a new home and community
  • What a new home in a new community can offer that the current one does not
  • Barriers to moving
  • Who is the decision maker in the household and who influences the decision to purchase a new home
  • How much time they expect to spend at their primary residence

Qualitative research techniques for making these determinations can include:

  • Analysis of visitors to your sales office to determine whether they are qualified and seriously considering moving, to learn what they find most and least appealing, and to assess competitive issues
  • In-depth interviews to probe consumer perceptions and to evaluate specific aspects of a project, such as architectural styles and floor plans
  • Focus groups to explore lifestyle and life-stage issues, to gather opinions regarding site or floor plans, to prioritize features and amenities and to determine what consumers want most and what they are willing to pay for in their next home
  • Surveys to determine customer satisfaction with construction and service, to assess and find ways to improve a company’s reputation for quality and service, to assess the performance of subcontractors and to improve product and sales.

Since mature buyers are highly influenced by the opinions of friends and they are likely to be an influence on others who decide to purchase in the community, telephone surveys on customer satisfaction are well worth the investment.

Builders know how to develop new communities and build homes, but building for active adults goes beyond that. It hinges on creating a lifestyle that they long to experience, a community that will enable them to enjoy their desired lifestyle and a home that mirrors their image of themselves as they enter the best years of their lives.

Consumer research is the key to understanding and creating that product.

Doris Payne, a gerontologist, is the senior consultant at Marketscape Research and Consulting, which is based in Chula Vista, CA. She and her colleagues work nationally with home builders to assist them in designing, answering questions and making decisions about conventional and seniors for-sale and rental housing. Payne is a member of the NAHB Seniors Housing Council and was a speaker at the 2003 Seniors Housing Symposium. She can be reached by e-mail or at 619-934-1816.


2004 Seniors Housing Symposium

To learn more about the seniors housing market, plan to attend the 2004 Seniors Housing Symposium, Building for Boomers & Beyond: It's All About Lifestyle in Chicago from April 14-16. The symposium will focus on the lifestyle component of 50+ seniors housing.

Seniors Housing Council

For more information about seniors housing and the 50+ market, visit the NAHB Seniors Housing Council Web site at www.nahb.org/seniors. To join the Seniors Housing Council, click here or e-mail Jeff Jenkins or call him at 800-368-5242 x8292.


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