Unexpected Insights from the International Home Builders Convention in Las Vegas
Realty News Report editor Ralph Bivins overlooks the Las Vegas Strip from the High-Roller during the International Builders Show.
LAS VEGAS – (By Ralph Bivins, Editor of Realty News Report) – Attendance at the National Association of Home Builders (NAHB) International Builders’ Show in Las Vegas reached its highest level in a decade, drawing roughly 100,000 attendees last week.
Restaurants were full and traffic was heavy. The scale of the event made it clear that bigger shows attract more attention and energy.
Thousands of new products and design ideas were on display at the International Builders’ Show. Once again, the NAHB event served as a central showcase for emerging trends in homebuilding.
The convention’s trends and highlights included:
What buyers want – According to an NAHB survey, laundry rooms are the top desire among home buyers. Other highly sought features include energy-efficient windows and appliances, patios, ceiling fans, garage storage and exterior lighting.
What buyers reject – The NAHB survey also identified least-favored features: elevators, wine cellars, cork flooring and rooftop plantings rank low with buyers. Developers of master-planned communities should note that 47 percent of buyers do not want to live in a golf course community.
Townhomes are in demand – Townhome construction is expanding rapidly, with an annualized growth rate of about 24 percent. Because they use less land and are generally more affordable, townhomes are proving attractive to Millennials and first-time buyers, said NAHB economist Danushka Nanayakkara.
Smaller homes – The average new home size in the U.S. fell to 2,576 square feet, marking the third consecutive year of shrinking homes. The peak average was 2,689 square feet in 2015. Builders are reducing home sizes to better serve demand at the lower end of the market, NAHB’s Rose Quint explained.
Decline of two-story spaces – Grand two-story foyers and family rooms with 18-foot ceilings are losing popularity. Buyers are favoring designs that support improved energy efficiency over dramatic vertical spaces.
The New American Remodel 2019, an exhibit home at NAHB’s IBS convention in Las Vegas. Photo: Ralph Bivins, Realty News Report.
Countertop preferences – Laminate countertops are falling out of favor. Homebuyers prefer granite and engineered quartz surfaces for kitchens.
Smart builder recommendations – Other features that rank highly with buyers include exterior lighting, walk-in pantries, hardwood flooring and double kitchen sinks, preferably stainless steel. Builders would do well to include these elements to meet buyer expectations.
Interest rate outlook – NAHB Chief Economist Robert Dietz said interest rates are expected to rise gradually, with the 30-year fixed-rate mortgage projected to average about 4.81 percent this year and 5.08 percent next year.
Showcase remodel – The New American Remodel featured a renovation of a two-story 1950s house. Redesigned by Luxus Design Build LLC in a modern West Coast style, the remodel includes a large glass front door and a backyard citrus garden.
Showcase new home – The New American Home 2019, built by Sun Coast Custom Homes, sits atop Ascaya, a mountaintop community overlooking Las Vegas. The home is expected to achieve Emerald-level certification under the National Green Building Standard, representing the highest efficiency level. The panoramic views from Ascaya are exceptional.
