FEATURE:Who’s buying where?
Target your marketing to your prime audience of buyers.
BY ROBERT FREEDMAN
A growing diversity in buyer needs is bringing subtle shifts in many markets. What you’re selling today may not be what buyers are looking for tomorrow. Although no one can predict the future, you can get insights by looking at recent trends.
Half a dozen years ago, Karin Adams, broker-owner of United Country Premier Brokers in Salida, Colo., was selling a lot of homes to retirees. Her rural market at the base of the Rocky Mountains had largely said goodbye to its traditional ranching roots and was now firmly in the grip of a new identity as a haven for artists and retired professionals who’d come there to ride horses, hike, and fish.
Then, a different kind of buyer started showing up, one that was younger and that still wanted to work, but in a way that blended in with the area’s laid-back lifestyle. Now Adams is welcoming buyers from different parts of the country who are teeing off on second careers.
“Lately we’ve been attracting a lot of younger attorneys,” says Adams, whose company has nearly 40 associates in two offices. “They always wanted to mountain bike and ski, so they’re exchanging a heavy client base for a more select one, working less but making enough to afford a nice quality of life.”
Changing consumer preferences mean you’re likely to see a greater variety of buyers looking for distinct types of properties in the years ahead, whether you’re working primarily in a center city, inner-ring suburb, outer suburban “edge city,” or a rural community. Knowing what type of buyers are most attracted to your market will enable you to better target your marketing in the next three to five years.
Center city
Built-out community with downtown core, older housing stock, and some new in-fill development and replacement housing, including conversions of warehouse and industrial buildings into lofts, townhouses, and condos. Existing homes may be quite old, in some cases 100 years or more; some are renovated. Distinct neighborhoods, some only a few blocks in size, have high-end replacement housing going up in or near downtown. Typical center cities: Pittsburgh, St. Louis
Who’s buying?
Empty nesters.
Now that their children are gone, they’re looking to enjoy urban living and downsize from large house in the suburbs to something smaller with little or no yard. They continue to work, full or part time, and may rely on the Internet to telecommute.
What they’re buying. Lofts in converted warehouses in arts district or new townhouses with plenty of amenities.
Young households.
Single or married, looking for convenience to job and cool places to socialize. Suburbs are definitely out, both because of their distance to work and their lifestyle.
What they’re buying. Older houses, 50–75 years old, requiring some work, with yards and in neighborhoods on the comeback trail, but not too hot or trendy. Close to thriving retail district.
Typical buyers:
Mark Nagarajan and Amy Camp, Pittsburgh, are married with no children. They’re recent college graduates who grew up in the Pittsburgh suburbs.
“We deliberated for a year to figure out what was important to us. We decided to stay in the same neighborhood we were renting in, because it’s close to downtown, where we work, it’s on a bus line, and we can walk to the grocery store. We wanted an older home with interesting architectural detail and something close to a thriving retail district. But we didn’t want to live in a neighborhood that was too hot; otherwise we couldn’t have afforded it.”—Amy Camp
Inner-ring suburb
Built-out older community sandwiched between city center and outer-ring suburbs. Homes are typically 50–60 years old, with modest footprints (under 1,800 square feet) unless renovated with an addition. Communities characterized by little new-home construction, established retail, and in some cases revitalized business districts, with some lingering industrial facilities but mostly offices and services facilities. Typical inner-ring suburbs: Lakewood, Ohio, Roseville, Minn.
Who’s buying?
Small, growing families or singles.
Often native or long-term residents of the metropolitan area, looking for convenience to city center but still outside urban core. They know the area well enough to recognize differences among neighborhoods and select just the right one to meet their needs.
What they’re buying. Affordable single-family, detached house of modest size with yard.
Relocating professionals.
They don’t know the area well enough to feel comfortable buying in the center city but want to be close to jobs, major universities, hospitals, and freeways. Concerned about commute from outer-ring suburbs.
What they’re buying. Newer single-family housing, typically of larger square footage than older homes in the area, or renovated older homes with additions that create square footage comparable to newer homes.
Typical buyer:
Joe McCann, Roseville, Minn., is a single, first-time buyer. He’s native to the area and previously lived with his parents.
“I wanted to stay in Roseville, because that’s where I work, and I like the city. My parents are here, too. It has everything I need. I didn’t want to commute. I was concerned that it would be too pricey for me because of its proximity to downtown. But the associate I was working with was able to find me a place, a 50-year-old rambler, two bedrooms and two baths, on a nice-sized lot with mature landscaping. It’s in a changing neighborhood. Many seniors are selling, and now it’s more diverse, with young couples, other single people, and families with small children.”—Joe McCann
Edge city
Newly developed outer suburban area, self-contained with large-scale retail, office, and entertainment complexes, and growing tracts of single-family homes, condos, and townhouses. More people tend to work than live in the area, which is linked by several major freeways, and local government may be spread across several city and county jurisdictions. Typical edge cities: Dulles, Va., Hoffman Estates, Ill.
Who’s buying?
Professionals.
Going where the high-end job growth is. Tech corridors tend to be synonymous with edge cities, so it’s the computer specialists and engineers who are fueling home sales. Incomes tend to be high, pricing many of the service employees who staff the restaurants, stores, and front offices out of the single-family market.
What they’re buying. New, large houses, typically 2,800–3,500 square feet with a two- to three-car garage, 3–4 bedrooms, and 3–4 baths. Emphasis on space and convenience with latest appliances, styling.
New households.
Unmarried couples and roommates, many of them in entry-level service industries, including retail and dining, some still in school. Mix of new and long-term residents of the area, many commuting to jobs in other parts of the metro area, including the center city and inner-ring suburbs.
What they’re buying. Condos or townhouses, typically of relatively recent construction, with convenient access to freeways.
Typical buyers:
Pushpa and Umesh Rao, Leesburg, Va., relocated to Washington, D.C., from Silicon Valley in a technology job-related move.
“When we came here in 2002, we were living in a condo not far from my office. We liked the convenience, but we were willing to trade a longer commute for more space. Plus, I wanted to buy something new. Our search took us out into Loudoun County into Leesburg, where we found a place that had everything we were looking for: a new home in a diverse community with other professionals that was a short drive to shops and restaurants in the historic part of Leesburg and still a reasonable commute to the Dulles corridor, where I work. We’re also still close to Washington, D.C., and yet only a 20-minute drive to the country. It’s the best of all worlds for us.”—Umesh Rao
Rural area
Community not tied to an urban area, with roots typically in the agricultural, mining, or ranching industries. In many cases land use is shifting toward recreation and away from traditional industries. Population densities are low, perhaps fewer than 500 people per square mile. Typical rural areas: Minden, Nev., Salida, Colo.
Who’s buying?
Retirees.
With time on their hands and their children grown, they’re looking outside metropolitan areas for a slowed lifestyle. Quality of life is key. They’re in search of country life away from crime and congestion, and they’re taking advantage of broader trends in land use in which developers are converting agricultural, ranching, or mining areas to mainly recreational use.
What they’re buying. Single-family homes on newly converted ranch or farm properties and vacation condos for converting into their primary residence when the time is right.
Second careerists.
Professionals who’ve reached a plateau in their career are embarking on a lifestyle change. They’re seeking to remain active in a second career, often choosing work that they can conduct primarily out of their home office.
What they’re buying. Existing homes on obsolete ranches or farms, in some cases with intent to redevelop property for investment purposes.
Typical buyers:
Jane and Doug Pinto, Salida, Colo. relocated from New York City for a lifestyle change.
“We had been coming to the area for years to get away from New York City and to visit family. We fell in love with the rural lifestyle and the breathtaking mountain scenery. Then, several years ago, we made a commitment to stay in a place like this, so we said goodbye to our careers—we were both in sales—without a firm idea of what we would do here. We owned a restaurant for a short time, then we made our way into real estate sales. We bought 105 acres, built our own house, and developed a portion of the land into single-family homes for sale.”—Jane Pinto
Sources who contributed to our four market profiles: Karin Adams, United Country Premier Brokers, Salida, Colo.; Barbara Beutler, GRI, Platte River Realty Scottsbluff, Neb.; Jeffrey Byrd, Eagle Realty, Roseville, Minn.; Trudy Goodwin, Weichert, REALTORS®, Dulles, Va.; John Mayers, Century 21 Jay Blank, Roseville, Minn.; Jennifer Smittkamp, Century 21 Jay Blank, Roseville, Minn.; Nancy Wright, CRS®, GRI, RE/MAX Realty Brokers, Pittsburgh
