Trends - February 2006 The Kids Are Alright
Born between 1982 and 1995, Echo Boomers, so called because they are the demographic echo of their Baby Boomer parents, make up nearly one-third of the U.S. population and already spend $170 billion a year of their own and their parents’ money.
Here are some possible ways to prepare for these up-and-coming buyers:
Become Media/Tech Savvy—Because Echo Boomers are the most sophisticated media generation ever, creating their own Web sites and making their own CDs and DVDs, real estate agents need to ensure they’re proficient in the use of developing technologies.
Familiarize Yourself with Pop Culture Trends—Because Echo Boomers determine and affect pop culture, Realtors should be aware of trends in music, entertainment, celebrities and fashion.
Familiarize Yourself with Popular Brands—Hoping to drive future home sales, many products and designers are partnering with residential developments to create appealing brands.
Don’t Forget Their Parents—Many wealthy retiring Baby Boomers are likely to invest in homes for their children.
For Richer, for Poorer
According to a recent report in AdAge.com, Americans are the world’s biggest consumers, collectively spending more each week than the annual gross domestic product of Finland! According to the U.S. Bureau of Economic Analysis, the average American household’s economic outlays for all goods and services reached $1,500 a week in 2005. The problem on the horizon, however, is that the number of households with below-average income is growing far faster than those with above-average income.
Under Construction
Sell-Your-Preconstruction.com is a new Web site that showcases properties for sale (while under construction) on a nationwide basis, by owner, Realtor or developer. “Pre-construction listings cannot be advertised on the Multiple Listing Service (MLS),” explains founder Dean Isenberg. “Therefore there are limited opportunities to advertise property while under construction.” The site charges a one-time flat rate of $199.99 for individual listings and $499.99 for developers, Realtors and investors with multiple properties to sell. For more information, visit www.sell-your-preconstruction.com.
A Model Home
According to the Nation’s Building News, modular home building is the fastest-growing method of home construction, with the number of houses built in the U.S. almost doubling in only 13 years—in fact, one out of every 10 new homes in the Northeast is modular or panelized. While often confused with HUD code housing and mobile homes, modular homes are built very much like stick houses—the only difference is that they are built in a factory and transported on trucks to a site where two or more are attached to each other and set on a prepared foundation. Modular Mansions by Sheri Koones (Gibbs Smith, $39.95) explores the many different styles of modular housing that are available today, and profiles over 20 modular houses in various styles—ranging from 1,344 to 12,700 square feet—in locations across the country. Koones also reveals the upside to modulars: savings in construction time, minimized weather delays and reduced loan times. |
