1 minute readPartners In Building, the Houston-based brainchild former Ryland Homes and John Laing Homes executive Jim Lemming booted up in 1986, was an oddity from the start for someone with a production homebuilder’s pedigree.
The News
Partners In Building, As a tide of more price-sensitive buyers gets buffeted and blasted downstream of both input cost inflation among builders and the impact on mortgage interest rates of the Federal Reserve’s balance sheet reduction and its plans to tighten its own reins on access to easy money, discretionary buyers whose wherewithal can withstand the price shocks and borrowing impacts figure to be the focus of a product mix shift ahead. Not only are value-focused homebuyers able to tap into greater financial flexibility and depth, they’re also apt to bear with longer start-to-completion construction cycles, since they view their new home purchase the sum of their “bucket list” of preferences in features and functionality. While the fundamental generational cohort factors that drove a strong mix-shift emphasis toward the first-time buying, entry-level pricing younger adult household are still in play, the impact of inflation, the prospect of interest rate rises, a slow structural shift in work-of-the-future livelihoods and earnings, and now, geopolitical violence and disruption changes the outlook. This new outlook means builders and their partners need to ready themselves for a new path of resilience, to steel their business models and investments for big bumps ahead. That means a focus on value over price in their offerings.Why It Matters
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