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Builders think families with children will have highest impact on home sales

by Rincey Abraham

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Builders find that families will children will have the highest affect on home sales in 2017, according to the 2017 Builder 100 survey.

Of its respondents, 68 percent believe that families with children will drive home sales, followed by 41 percent who think that Baby Boomers and active adults will drive home sales as they become empty nesters and retire. Couples with no children followed with 30 percent, then single buyers with 16 percent and foreign buyers with 9 percent.

Builder also found that this can change depending on the region and the city. In certain bedroom communities or the major markets in Texas, family buyers drive the market. However, in other markets such as South Florida, empty nesters account for the majority of home sales.

However, in Builder’s monthly survey of regional directors, some directors show that families with children are searching for entry-level homes, as opposed to moving up in home. This emphasizes a demand for affordable housing and entry-level homes, which builders are currently struggling to provide.

In the 2016 Builder 100 survey, 50 percent or more of units closed were luxury homes, despite the fact that builders also see that families with children are the highest market.

According to Builder’s monthly survey, the average demand for new homes increased from 7.03 in April 2016 to 7.72 in April 2017, an increase of 9.8 percent. In April 2015, average demand for new homes was 6.61, which is an increase of 16.79 compared to April 2017.

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