In anticipation of our Builder 100 summit in November, we reached out to a number of Builder 100 and Next 100 firms for a recent feature story. We’ve all been navigating our way through the COVID-19 pandemic for more than half of a year, and, as a result, we wanted to check in with builders to ask about how business is faring, and what might be giving them pause in the months to come.
Across the board in responses we received, it appears business is good. Housing has been dubbed a bright spot in the current economy—but we also learned that pretty much no one would have bet on that at the onset of this crisis. In fact, many builders noted fearing the worst and pulling back or completely putting the brakes on certain aspects of their business in March and April. But then, amid soaring unemployment rates, consumer demand for new homes picked up steam. After being in their homes perhaps more than ever before, people wanted more from their living space, and, for a select group, location options suddenly became Anywhere, USA, with the rise of work-from-home capabilities removing the need to be within commuting distance of an office.
Despite slowdowns in the early spring months of 2020, most builders report that they are ahead of initial sales plans (set pre-coronavirus), and many already cite record-breaking sales and closings for the year. Dan Ahrens, chief field operations officer at Scottsdale, Arizona–based Taylor Morrison, notes that the firm experienced its best sales month on record in June. And at Irvine, California–based TRI Pointe Group, CEO Doug Bauer says there was a 28% year-over-year improvement in orders in June, “with the momentum building even more during the first three weeks of July.” Clearly, builders were able to not only adjust, but also flourish in uncharted territory that moved the majority of the home-buying process to happen virtually.
While that technological shift is good news on certain fronts, some builders we talked with voiced concerns about the implications of all virtual for the long haul within an industry as hands-on as home building. Joan Webb, chief marketing officer at Aliso Viejo, California–based The New Home Co., says balancing the virtual and in-office workflow is a challenge.
“The whole nature of collaboration is tough to keep fresh in an ongoing virtual landscape,” she says. “We all now know the benefits of working remotely: life-work balance, less time on the freeways, less polluting, more flexibility, and more autonomy. But home building is the ultimate team sport, and we need creative collaboration when it comes to product design, land planning, and building technologies.”
Typically fostering that creative collaboration among industry peers in person, this year’s Builder 100 event has pivoted to a virtual offering, Nov. 2–4. That time frame might already be on your radar: Election Day is Tuesday, Nov. 3. While you’re penciling in which Builder 100 sessions to attend (view the agenda and register at builder100.com), also make time to vote. Regardless of whether you vote early, by mail, at the polls—your voice and your vote matter.
If you need some guidance, NAHB outlines the presidential candidates’ positions on key housing-related issues and provides a list of congressional endorsements online. (NAHB endorses candidates “who have shown a commitment to policies that promote homeownership and rental housing opportunities for all Americans.”)
Do your research, weigh your options, and make sure your voice is heard.
