Housing Dimensions Blog
by Ali Wolf and Chris Porter
Beware the household formation headlines! The current data—1.3 million households formed in 4Q14—likely overstates actual household growth. Since 2007, 6 out of 8 of the gains in the fourth quarter were given back in the subsequent first quarter by negative household formation (see graph below). Also, no other data point we found in Q4 supported household growth that strongly.
by John Burns
As noted during our consulting team's visits to thousands of communities all over the country last year, and also shown by the slower 2014 sales in our master-planned communities survey, the land development and home building industries need to shift their mix of communities to target a different mix of buyers than the traditional mix. New home community segmentation needs to change in four ways: