Digging Into Demographics: Market Research Informs VISION House Las Vegas

Big builders rely on deep research to find out if there’s an appetite for the product they want to build.

From the consumer perspective, model homes offer a glimpse of an ideal life to which they can aspire. Prospective buyers admire the color scheme, the flooring, the layout and the accessories placed by interior designers. What they may not realize is that these features have been designed to inspire a specific buyer who values the energy efficient features behind the walls. 

Long before Beazer Homes and Green Builder Media began to plan the VISION House Las Vegas: Crossing the Rubicon project, researchers at Beazer Homes pulled together information on the local market to determine where and what to build. 

“There are two main components that go into market research for a new product or a new location,” says Jesse Zaro-Moore, Atlanta-based director of market and consumer research for Beazer Homes. “Before you begin land acquisition and community planning, you need to look at the surrounding area and the performance of products in that area. Then you can begin to build profiles reflecting the purchasing considerations of people who live within a three-mile radius of the site.”

The VISION House Las Vegas, which includes two model homes and a deconstructed model to demonstrate what’s behind the walls in Beazer’s READY homes, will be built at the 2,200-acre master planned community of Cadence in Henderson, just outside of Las Vegas.

The amenity-rich community has more than 5,000 homes today and will have approximately 12,250 homes from 10 builders when the development is complete. The VISION House Las Vegas homes and all future Beazer homes will meet the Department of Energy’s Zero Energy Ready Home (ZERH) requirements.

Start with a Local Point of View

Before choosing Cadence as the location to showcase Beazer’s high-performance home, researchers reviewed the types of households in the area, the sales record of homes at different price points in the area and the types of products being sold. 

“The rule of thumb has always been to look locally at buyer trends, but since the pandemic that’s shifted,” Zaro-Moore says. “We’re still adjusting to the new reality that more people work remotely and are willing to move. We’re seeing lots more California license plates in Las Vegas, Phoenix and even Texas, which may carry different buyer attitudes.”

About 20 percent of buyers in the Cadence community are from out of state, says Jayne Bradley, Southern California-based director of marketing for Beazer Homes.

Still, the baseline of most buyers coming from within a relatively tight circumference of a location holds true in most communities, Zaro-Moore says. That’s because regardless of the flexibility of their jobs, people want to live near their kids, their friends, and the institutions they’re familiar with. 

“Birds of a feather flock together, so we know that new households will behave similarly to households already in the area,” Zaro-Moore says. “We look for household compositions, and for trends or population shifts, to inform what we build.”

Then, Beazer’s researchers look for signs that they can attract some of these households to buy a new home.

“We look at various personas across different life stages and consumption patterns where we want to build,” Zaro-Moore says. “We want to know what problem we’re solving for and what are the main drivers of a move. We anticipate how people may live in a house and what they might need.”

For example, a downsizing couple may may want a “lock-and-leave” home with low maintenance. Others may want their home to be in a specific school district.

“We look into what tradeoffs buyers might make to be in that school district,” Zaro-Moore says. “Maybe they’re willing to sacrifice a little bit of space to be in a new house in the right location.” 

Empty Nester – single or couple, no kids at home

• Income: $100,000+
• Interests: Dining out, family and friends
• Key preferences: Low maintenance, energy efficient,  smaller home with space to socialize
• Location: Gated community with amenities for their kids and  grandkids
• Where they spend: Whole Foods, Target, Trader Joes, Wegmans,  Harris Teeter, Amazon
• Priorities: Health and fitness
• Car: Purchase or lease new Mercedes, Lexus, Lincoln or BMW

Aggregating Potential Buyers

A massive array of attributes becomes part of various audience segments. 

“Affordability is subjective, and what seems affordable to a buyer is not just based on income but also on the demands upon someone’s income,” Zaro-Moore says. “For instance, a larger family has more demands on its income compared to a couple without children and the same income.”

Beazer utilizes nearly 200 audience segments to analyze buyer behavior profiles. 

“The main drivers for how we group people together are life stages, which are somewhat linear for most people, and consumption behaviors,” Zaro-Moore says. 
“We look at data to understand how people with the same income and lifestyle spend money. Some people are more comfortable living in the middle of everything and will be happy with less privacy, while others want the largest house in a quiet, gated suburban community.”

Beazer can review data across the entire footprint of their portfolio to drill down to a specific location and household level.

“First we want to know if we can be successful in a location, and then we can look at how heavy a lift it will be to sell homes there,” Zaro-Moore says. 

Researchers also pay attention to lifestyle trends.

“Over the past several years, we’ve adjusted our floor plans to match the way people want to live, with an open area for family and friends to gather, along with a separated primary bedroom for privacy,” Bradley says. “We’re designing homes with an easy transition between indoors and outdoors.”

More recently, floor plans have been tweaked with private pocket areas for people to work, and what Bradley calls a “messy kitchen” like a “pantry on steroids” so the open kitchen stays neater.

“We try to understand how people want to live in a house, which includes breathing healthy air, feeling comfortable and as if they have found sanctuary,” Bradley says. “People may not realize how important it is to have a quiet house even when the air conditioning is running, and how nice it is to have temperature controlled so there are no hot spots, either.”

A large master planned community like Cadence can be noisy, particularly because there’s nearly continuous construction, Zaro-Moore points out.  

“When people visit our model home, they often comment on how quiet it is, like a haven,” Zaro-Moore says. “They don’t always realize that the quiet comes from our construction and insulation practices.”

Young Couple/No Kids

• Income: $75,000 to $100,000
• Interests: Dining out, concerts, streaming music, cooking at home,  outdoor pursuits, watching sports on TV
• Key preferences: Two-story home with efficient use of space, smart  floor plan, tech ready, guest bedroom and bathroom
• Location: Desirable school district, safe neighborhood with amenities  for daily needs
  
• Where they shop: Amazon, Target, Costco, PetSmart, Chewy
• Priorities: Fitness, healthy lifestyle with lower cost
• Pets: Yes; they think of it as a “starter family”
• Car: Buys a new one every 5-6 years so they can pay it off each time

Buyer Pool Shifts in Las Vegas

Home sales began at Cadence in December 2014, which means historical sales data is available for builders. Beazer will build townhouses and single-family homes in the Aria Crossing neighborhood that includes the VISION House Las Vegas.

“Seven to nine years ago, we saw more ‘value buyers’ in the Las Vegas market, but it’s evolved now and we’re targeting more-affluent buyers,” Bradley says. “Cadence buyers are typically first or second move-up buyers, often double-income households or age 55-plus buyers who are looking for a quality home.” 

Prior to the pandemic, many age 55-plus buyers were looking for an energy-efficient townhouse that required little maintenance so they could travel, Bradley says. 

“During COVID, people really thought about what they wanted,” Bradley says. “Now there’s more focus on indoor air quality and having a home office. We’re also seeing an influx of remote workers in Las Vegas, especially from California.” 

Older Millennials with Kids at Home

• Income: $50,000 to $150,000
• Interests: Dining out, entertaining at home, outdoor activities, fitness,  domestic travel
• Key preferences: Two-story home with four or five bedrooms, practical  upgrades such as flooring that stands up to kids, nice kitchen because of  eating at home often
• Location: Amenity-rich neighborhood with good schools, other families,  convenient to shops
• Where they shop: Target, Walmart, outlet malls, Costco, Amazon
• Priorities: Value – location matters less than price; community amenities
• Purchase or lease used cars: Toyota, Honda, Ford, Chevrolet
• Pets: Yes, part of the family

Zero Energy Ready Buyers

Marketing Zero Energy Ready Homes (ZERH) requires buyers and finding those who already understand the value proposition of healthier living in a high-performance home. 

“We look for areas with a high concentration of electric vehicles, households that appreciate new technology,” Zaro-Moore says. “We look for information about people’s habits such as whether they recycle and whether it’s important to them to have sustainable products.” 

That information helps Beazer understand where their ZERHs may be the most successful.

“We also review recent sales history to determine why a buyer chose to purchase a ZERH,” Zaro-Moore says. “Was it purely the location or was it something about Beazer’s design that appealed to them? 

“The equation of why someone would buy a ZERH is different depending on the location. For example, Texas has low energy costs but the high heat and issues with the grid make this type of home better for resilience,” he says. “In other markets, energy savings are more important.” 

“We are learning how to talk to buyers about [ZERHs],” Zaro-Moore says. “Some people are highly committed to sustainability and naturally understand why this is important. Others geek out over the science and technology, while others just like the quality construction.” 

Gen X Family with Older Kids or No Kids at Home

• Income: $100,000 to $150,000+
• Interests: Dining out, entertaining at home, live music, yoga
• Key preferences: First-floor primary bedroom, gourmet kitchen for  entertaining, covered patio, 3-5 bedrooms for future boomerang children  and grandchildren, smart home features
• Location: Walkability to shops and entertainment, close to amenities
• Where they shop: High-quality clothing stores, Amazon, Target, Whole  Foods, Trader Joes, local specialty markets, online meal prep subscriptions
• Priorities: Fitness, personal trainer
• Car: Buy a new high-quality Tesla, Lexus, Mercedes or BMW every 5 years
• Other: Subscribes to online meal prep like Freshly or Blue Apron

Buyers with VISION

Beazer’s research team identified four groups of buyers who are more likely to purchase homes like the VISION House Las Vegas in Aria Crossing in Cadence. 

“We anticipate the primary buyers at Aria Crossing to be mostly move-up buyers who want a larger home with areas for entertaining and for guests to visit,” Bradley says. “Location is key for these buyers, and they also want upgrades throughout the home.”

Typically, people in this buyer pool own their homes and have significant home equity. According to Beazer’s research, these persons have a high credit score, a low debt ratio and investible assets. More than half are college graduates. They have a household income of $100,000 to $150,000.

Overall, Gen X buyers prefer single-family homes in suburban communities that fit their lifestyle, according to Green Builder Media’s COGNITION Smart Data. They prefer homes with private sanctuary spaces along with common areas for entertaining, a home office and space for fitness. 

Research on this group of Gen Xers shows that they want to be in an area with easy accessibility for convenience and lifestyle. They’re willing to buy a smaller, low-maintenance home as long as there’s three to five bedrooms for future boomerang kids or young grandchildren. They don’t necessarily need a large yard as long as they have a well-thought-out backyard. 

Another prospective group of buyers at Aria Crossing may be first-time buyers.
“Many in this buyer pool have a dog,” Bradley says. Location and surrounding amenities are key for this group. They’re looking ahead to be in a good school district in the future.”

These buyers are more value-oriented than other buyers, Bradley says. They tend to want practical upgrades in the main living areas such as higher ceilings, lighting, built-ins, and surround sound systems. They also want a tech-ready household with a Nest thermostat, high fiber availability and multiple areas for study and electronics. They have a household income of $75,000 to $100,000.

Overall, millennial buyers prefer compact floor plans and prioritize healthy, resilient homes, according to COGNITION Smart Data. They are more concerned about the cost of homeownership than other generations. The chart [below, to the left] shows millennial homebuyer responses about the causes and topics they prioritize. 

Beazer also anticipates that buyers across generations will find value in the homes at Aria Crossing. 

“These buyers are looking for new construction and less maintenance,” Bradley says. “Location is also a huge factor.”

This buyer pool, with a household income of $100,000 or higher, typically has significant home equity and investable assets. 

“These are move down buyers without kids at home who enjoy travel and want at least two or three bedrooms for friends and family to visit,” Bradley says. “They also understand the benefits of energy efficiencies in the home.”

Since they have personal wealth, these buyers are more likely to want upgrades throughout the home. 

“Technology is important to these buyers, who want upgrades like smart locks and smart home devices,” Bradley says.