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Year-End Takeaways for the Home Building Industry


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As we approach the end of another eventful year in the home building industry, it’s the perfect time to reflect on the key lessons and takeaways that can guide us into a promising future. Despite the challenges and uncertainties, there’s much to learn from the experiences of the past 12 months. Here are some crucial year-end takeaways for the home building industry:

  1. Adaptability Is Key: The year 2023 highlighted the importance of adaptability. Home builders who quickly adjusted their strategies in response to changing market conditions were better positioned for success. Flexibility and the ability to pivot in the face of challenges have become valuable assets.
  2. Digital Dominance Continues: The digital transformation in the home building industry is no longer a trend; it’s a necessity. With homebuyers relying on online research and interactive tools like never before, having a robust online presence, including virtual tours and interactive floor plans, is essential. There is some good news here: the costs of these digital technologies are dropping. This is an excellent opportunity for smaller homebuilders seeking a competitive advantage. Builders who want to stay ahead of the curve in 2024 should consider implementing digital assets they may have believed to be out of reach. Pricing has become much more competitive in recent years. Putting some digital tools in place could mean the difference between staying in the game and being unable to remain competitive.
  3. Supply Chain Management: The global supply chain disruptions served as a reminder of the significance of efficient supply chain management. Home builders should build resilient supply chains to prevent delays and maintain construction timelines. Resilience is essential in every part of the supply chain, from labor to subcontractors to materials and technology. 1
  4. Sustainability Matters: The demand for sustainable and energy-efficient homes is rising. Incorporating green building practices appeals to eco-conscious buyers and helps reduce long-term operating costs. The home building industry is waking up to the importance of green building. Even NAHB and IBS are getting involved by funding a Green Building Scholarship. Please find out more by visiting their website: https://www.nahb.org/advocacy/industry-issues/sustainability-and-green-building/sgb-scholarship-for-ibs
  5. Quality Over Quantity: Prioritizing quality over quantity is becoming the mantra of successful homebuilders. Delivering superior craftsmanship and focusing on customer satisfaction can lead to lasting success in the industry. For an interesting read about improving housing in America, check out what the Joint Center for Housing Studies of Harvard University found about the impact of COVID-19 on our current market. They have some interesting statistics on home repair ($420 billion spent in 2020), DIY vs professional, and the demand for quality housing. https://www.jchs.harvard.edu/improving-americas-housing-2021
  6. Teamwork and Talent: The importance of a skilled and motivated workforce cannot be overstated. Investing in employee training and well-being can improve productivity, retention, and overall company success. Continuing education for your Online Sales Counselors and Marketing team is imperative. The digital landscape is ever changing. Marketers need help to stay current. Summits and conferences can pay 100-fold. Online Sales Counselors are only as good as their sales experience and education. Help them by ensuring they have all the tools in their toolbox.
  7. Customer-Centric Approach: Home builders who put the customer at the center of their operations tend to thrive. Excellent customer service and transparent communication go a long way in building trust and loyalty. More and more builders are discussing that a customer-centric approach might involve having transparent online pricing. Just listen to what Reilly LePage of Logel Homes had to say on The Home Builder Digital Marketing Podcast: https://www.buildermarketingpodcast.com/episodes/190-elevating-the-online-home-buying-process-reilly-lepage Builder Online thought this was such an important topic that they featured the podcast this month on their Builder 100.
  8. Risk Management: With uncertainties in the market, effective risk management strategies are crucial. Planning for potential disruptions and having backup plans can mitigate unexpected challenges. Conducting market analysis before starting a project, having a robust financial reserve, and securing contracts with backup suppliers are just a few ways to mitigate risk.
  9. Local Market Insight: Understanding the unique dynamics of local markets is essential. Tailoring strategies to meet each community’s specific needs and preferences can make a significant difference. Home builders can always hire an independent market research team. If that is outside the budget, local home builders associations, real estate associations, and chambers of commerce often publish market reports, housing data, and economic indicators for specific regions. Additionally, the U.S. Census Bureau, local planning departments, and housing authorities publish data providing demographic information, building permits, and economic data. If all else fails, there are the good old real estate platforms Zillow, Realtor.com, and Redfin to peruse for statistics, pricing trends, and property listings.
  10. Continual Learning: The home building industry is constantly evolving. Those who commit to ongoing learning and staying updated on industry trends and regulations will remain ahead of the competition. Educational events like the National Association of Home Builders International Builders Show (IBS) and The Home Builder Digital Marketing Summit are key. Summits and Conferences help builders keep up with the ever-evolving industry. Monthly learning like that provided in Builder Town Hall by Meredith Communications is also a great way to keep your ear out.

As we bid farewell to this year, let’s carry these valuable takeaways into the future. The home building industry’s resilience and adaptability have been on full display. With the right strategies in place, the opportunities for growth and success in the coming year are boundless. Cheers to a promising and prosperous future in the world of home building!

Tabitha Warren was an Income Tax Accountant for 15+ years.  In the first months of the pandemic, she took a chance and re-careered to freelance in Marketing.  She currently, and very happily, works with video and photo editing, social media marketing, and now blog writing.

  1. https://buildertrend.com/blog/construction-supply-chain/

Great Architectural Design Never Goes Out of Style


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What inspires a young entrepreneur to found a company focused on Computer-Aided Drafting (CAD) for residential architecture?  For Outhouse partner Stuart Platt, a big catalyst was growing up in one of the most breathtaking homes in Phoenix, “a unique desert oasis,” built by internationally acclaimed Architect, Will Bruder.  Constructed from a combination of glass, steel, and desert masonry, the home takes full advantage of the impressive desert setting in north Phoenix.  It is often hard to tell where the inside of the home stops and the outside begins.  SPECTACULAR!  This is the first thought that comes to mind when you walk in.   The second is, Wow, when Stuart says he grew up in an uninhibited family, he isn’t kidding.  There is nary a window covering in sight.  Third is who cleans all the glass?  The joke at Outhouse is this is why Stuart is so tall, he needed to be to reach the clerestory windows.  

Great design - expansive living room constructed of metal, glass and wood.
Great Design – Platt Residence, Phoenix AZ

Building this house did not come without challenges.  To move into their home, Stuart and his parents lived in a trailer on the property for four years while they were building.  After moving into the home prior to completion, construction continued for most of the Platt family’s tenure.  For those of us who have undertaken renovation projects while in our homes, we can certainly relate!

Modern, open kitchen designed for entertaining
Minimalist, but highly functional kitchen – perfect for entertaining

Earlier this year, the Platt residence went on the market and sold in a very short time.  Being curious by nature, Stuart asked a realtor friend to arrange a tour, and off they went.   When they arrived, they had a chance meeting with the owner, and when Stuart let him know his family built the home, the owner extended an invitation to house sit for a week while he was on vacation.  True story!

Outhouse Partner Stuart Platt in front of home his family built.
Outhouse Partner Stuart Platt – original homeowner (via parents)

Over the years, changes were made.  The sunk-in living room was raised, the kitchen was renovated, and needed most of all, proper air-conditioning units replaced a single evaporative cooler.  But the overall structure remains the same as it was when it was built more than thirty years ago. 

Expansive master bedroom with glass wall to bring the outdoors in.
Spacious bedroom which extends to the great outdoors.

The Platt residence proves that great design is timeless.  The HERS Rating on this home is probably astronomical, but who cares.  The one-of-a-kind design is fabulous!  Its style is being incorporated into today’s production homes which feature expansive walls of glass that open to the great outdoors, and materials that complement the natural setting.  Enhancing great design today are energy efficient features like dual pane low-e windows, well insulated walls and ceilings, a tight thermal envelope, air/vapor retarders, energy-efficient heating and cooling systems, low flow faucets and toilets, and energy efficient appliances.  Forward thinking builders are also implementing value engineering, modular construction, and innovative building envelopes including Structural Insulated Panels (SIPs), Insulating Concrete Forms (ICFs) and the JEP building system, all of which increase energy efficiency of a home.    

Great design and energy efficiency are at the core of Outhouse’s new partnership with Linderoth Associates Architects.  Our 40+ years of experience have led to a shared philosophy based five pillars of home design and marketing presented a decade ago by Sam Rashkin, Chief Architect of the Department of Energy Building Technologies Office:

  • Sustainable land development
  • Great design
  • High-performance
  • Quality construction
  • Effective home sales and marketing

With 76 million Boomers and 72 million Millennials seeking out builders who embrace these principles, the importance of designing, constructing and selling homes and communities featuring innovative planning techniques, great, timeless design, high performance, and socially responsible features cannot be overstated.  Homes like the Platt residence inspire us to build homes that seamlessly integrate indoor and outdoor living spaces.  Today’s innovative construction techniques allow that to happen.