By the year 2000, the "traditional" homebuyer -- a married couple with two children, a dog, and a cat -- will comprise less than 25 percent of the market. And just who will represent the other 75 percent? A panel discussion during the recent International Builders' Show in Dallas identified the nontraditional buyers of the future, as well as their product design preferences. Speakers included Ray Osborne, a 22-year homebuilding industry veteran who maintained his own advertising agency and national real estate consulting firm for 13 years; Tom Weston, president of the Weston Group, a California advertising and public relations agency; Doris Pearlman, president of Possibilities for Design, Inc., a Denver-based design firm; and John Schleimer, founder of Market Perspectives, a residential and commercial real estate consulting firm based in Sacramento, Calif.

The resounding message for the new milennium: If you build it, they won't necessarily come. The consumers already defining the next century have a powerful tool -- knowledge -- and definite opinions about what they want. "What you know doesn't matter," Osborne told an audience of builders and other real estate professionals. "You must know what the consumer knows. People are seeking a simple life, a return to the family, a sense of community. We've got to sell them perceived value. Good products and good value sell regardless of the market." Considering that the average home-shopper visits 14 communities, 60 models, and spends six months searching before reaching a decision, builders are under more pressure than ever before to stay one step ahead of the pack. A builder's best strategy is to be proactive, anticipating homebuyers' needs before they head elsewhere -- to another builder who's given careful consideration to the amenities they want.

To illustrate the fast-changing composition of our national buyer market, consider this: In 1970, married couples with children represented 40 percent of the new-home market. The emerging household types leading into the year 2000, however, are anything but traditional. Emerging buyers fall into one of the following five categories:

• Single parents;
• Single people;
• Empty-nesters, pre-retirement;
• Married couples without children;
• Unrelated people.

Each one of these categories of buyers comes with unique preferences. According to Schleimer, empty-nesters don't consider lot size a particularly critical element. They tend to favor single-story plans that provide privacy and minimal maintenance. Yet they don't want a property to be downsized excessively. The distance from garage to kitchen is important to them -- they prefer easily accessibility -- and they tend to prefer separate guest bedrooms and baths. A "great room" is often less important to them than a sizeable family room.

"Techno-nerds," usually a subdivision of the "single people" category, are often first-time buyers able to afford homes thanks to their employment in high-tech industries. They tend to prefer attached and small-lot detached homes. Their other preferences include: a desire for eclectic architecture; special outdoor spaces; bonus storage space; great room designs; home entertainment center alcoves (versus standard TV stands); convertible secondary bedroom(s), which may be used for home offices; and separate sleeping wings.

Of course, design is a crucial component of construction. What sums up the 21st century lifestyle? According to Pearlman, future homebuyers will be looking to capture one or a combination of the following moods in their homes: "cottage character," "a dreamer's paradise," "relaxed traditional," "retro rhythm," "urban enclave," or "arts and crafts chic." Four types of markets exist for those who market design elements:

• The Aquirer: a first-time buyer who wants space and value. Authenticity is important -- no cookie-cutter designs allowed -- and wood is often a pleasing demonstration of authenticity. Aquirers, a relatively young market, also tend to favor home offices. Often single people, aquirers lean toward earthy colors -- beiges, classic colors, elements that appeal to both men and women. Cost-effectiveness, energy-efficiency, security, home entertainment, and natural elements are all important aspects of the home environment for this group.
• The Aspirer: a first-time move-up buyer, whom Pearlman calls the "vigilante consumer." At this point, homebuyers have more definite ideas about what they want and don't want in a home. Their likes include utility vehicles, controlled volume, family vacations, ethnic elements, and larger kitchens and family rooms. Like the Aspirers, they often prefer natural elements such as wood, cotton, or leather.
• The Achiever: a second-time move-up buyer. Quality is key for this group. They want to show the world they've made it. Homemaking has become acceptable, elegant, and luxurious for Achievers (a la Martha Stewart). They desire more perceived value -- more of an upscale air -- and demand authenticity in the form of stone surfaces, iron, wood, etc. They're certified members of the "Do-It-Yourself" movement. What's hot in this market? Flexible space for home offices or in-law suites, and a front-porch-friendly atmosphere inside and out.
• The Actualizer: the luxury homebuyer who wants all of the gadgets and gimmicks included
• The Accomplisher: those who have lived in their homes for approximately 30 years. They're looking to downsize now but without compromising elegance and quality.

Builders not only have to construct the homes and incorporate the design elements that meet their buyers' demands; they also have to determine how to market those properties to them while taking into consideration which approaches are most effective for that particular buyer profile. Active seniors, born between 1920 and 1942, are far from old and are in fact changing our definition of "senior." This segment of our population responds best to advertising that stresses no restriction in their activities. Even if communities are age-defined, Weston said, ads should use humor to market those communities. "One of the best slogans I heard was 'Old enough to know better,'" Weston recalled.

"Aging boomers," those born between 1943 and 1960 who represent the "me" generation, respond best to marketing efforts that stress a combination of leisure and status, and because "me" is important, they prefer ads that picture representatives of their own boomer population. They represent the most powerful economic group as we enter the 21st century. Values -- most notably their own -- are sacred to the "can-do" generation. Helping others is primary among those values.

"Generation X," an often vague term, was born between 1961 and 1981. They're street-savvy and tough -- many of them are children of divorce. Friends often substitute for family. This group wants value and quality, and where they perceive it, they're willing to pay for it. This group illustrates a dichotomy in its tastes, between tradition and modernism.

Marketing efforts to single parents -- predominantly women -- may be approached either as single-by-choice or single-by-circumstances. This group has heightened security issues. They don't want the gender aspect stressed. They're pressured to "do it all," and they're very much aware of the glass ceiling.

Same-sex partners are a fast-growing segment of the buyers' market. These buyers, most of whom are in long-term, committed relationships, are seeking status and recognition as married couples from the larger society (if not the law). This affluent group of buyers harbors surprisingly traditional tastes and conservative values. But while they're seeking acceptance, they don't want to be defined by their sexual preferences, either.

Published: January 30, 1998

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