| Even Locally, Several Distinct Housing Markets Exist |
| Written by Jonathan Smoke | |
| 02.05.2008 | |
Discuss this article on the forums. (0 posts) The posts last week regarding home sales and optimism about a better 2008, at least for healthy, non-bubble markets, received several comments. In the January 25 post, I presented the idea that we should really look at housing markets across three distinct groups: former bubble markets, healthy non-bubble markets, and economically ailing markets.My segmentation led one of our readers to write me and suggest that we should really analyze housing as three distinct markets: 1. Affordable low income housing ($100K -$250K) 2. Middle class income housing ($300K - $700K) 3. Custom home housing for high income ($1 mil +) This reader has a great point, and it’s one that is especially critical in this market where credit impacts may be more severe in certain price points. I will go one step further and state that we should really segment housing by the demand or the customer and not by the product, and we should do so specifically in each market area. This is because even identifying segments by price points can be dangerous because of the significant variation in prices across markets and even within many markets. Affordable in Houston does not equate to affordable in Los Angeles. For years, we have been studying demand based on consumer and household demographics and psychographics. To do this well requires very detailed demographic and lifestyle data in each market, so we’re testing the demand for this information with a new set of reports. Initially, we have focused on 5 markets where we have a lot of clients and subscribers: Atlanta, Charlotte, Dallas, Houston, and Jacksonville. Check out our new Special Reports as well as full current market commentaries on the same markets. Interested in other markets? Let us hear from you. We will make the necessary data and effort investments if there’s enough demand. If you are a builder, developer, investment company or building product supplier that could benefit from learning about our customer demand groups, we’d be happy to develop a program and special reports to help your company better understand and target new home buyers. 
We're always looking for feedback from our readers.
No. 1 : Market type Is there a demand for smaller housing projects either considered 2nd homes or cabins or even primary residencees in the 1500 square foot range? No. 2 : Yes there is demand for small homes That is a great question and it deserved a bigger response than a reply here so check out the new post for today on "Demand for Small Homes? You Bet!" I didn't address second homes and cabins, as there is demand for primary residences that are small, and there's definitely demand for small second homes in appropriate recreational-oriented areas. |
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