Paying attention to industry statistics and trends is important regardless of the field your business operates in.
When you are in-tune with the ebbs and flows your industry, you’ll be better equipped to make the necessary changes to combat these trends.
This is especially true for the home building industry. Paying attention to industry and nationwide statistics allows you to understand where the home buying market is as a whole.
It can also tell you how to market your business and get in front of your target market.
The home market can be volatile at times, as its success is closely aligned to the economy, which has its own ebbs and flows. For this reason, home builders cannot simply rely on old statistics—even if they aren’t terribly old. What was once a trend 5-10 years ago may be outdated or totally different today.
That being said, here are some fresher statistics that will give you a great grasp of where the home building industry is at currently.
50% of Home Buyers Find Their Home on the Internet (NAR)
It’s safe to say that just about every industry is experiencing an uptick in digital conversions, and the home industry is no exception. While you obviously can’t just add a home to an online cart and purchase it, finding a home online is a huge first step in ultimately buying it.
Because of this, home builders and sellers alike need to ensure that they are implementing adequate digital marketing strategies. For example, SEO is a huge part of getting in front of prospective homeowners, and all home builders should be investing in it if they haven’t already.
667,000 Newly Built homes Were Sold in 2018 (NAR)
That number shows just how healthy the home industry is. If you’re a home builder right now or are thinking about breaking into the industry, now is as good of a time as any. While 2020 may have seen some decline due to COVID, which may drag into 2021, there is no reason that the industry will see any significant decline anytime soon. People will always need homes.
86% of Millennials aged 21-28 Were First-Time Home Buyers (NAR)
Wait, so you’re telling me that millennials are actually buying homes after all? And that all those rumors about them not buying homes were exactly that, rumors? It turns out that millennials don’t enjoy sinking money into rent month after month and instead are looking to invest in a home, just like everyone else.
The Cost of Renting Has Gone Up in 65% of U.S. Counties (Realtor)
As the last stat alluded to, the cost of renting is only going up in the majority of the U.S. For this reason, the home building market continues to see growth. Sinking money into renting just doesn’t make sense anymore.
The U.S. Housing Market Was Worth $33.8 Trillion in 2018 (Housing Wire)
That is an extremely big number and one that once again illustrates the sheer size of the market. As we mentioned before, the market does have its fair share of ups and downs. But, it has remained steady for quite some time now.