Strong 55+ housing market gains signal good news for Epcon
Demographic trends and new home availability point to robust growth potential for Franchise Builders.
The National Association of Home Builders delivered more good news recently: The 55+ housing market made strong gains in the third quarter of 2016, with a housing market index above 50.
The HMI is an indicator of robustness and a value above 50 is considered desirable (the HMI for Q3 was 59). This also marks the 10th consecutive quarter where the HMI has registered a number above 50. Particularly noteworthy is the steady rise in positive indicators for the 55+ single-family housing segment.
These upswings are especially welcome news for the home building franchise, Epcon, the 40th-largest home builder in the U.S. and the 22nd-largest privately owned home building company in the country (Builder Magazine, May 2016). Epcon’s ranch-style, low-maintenance, single-family homes have great appeal with the 55+ demographic.
Epcon homes are winners in the 55+ residential housing market
A noteworthy confluence of demographics and market availability is driving growth in the 55+ housing sector: the number of people 55+ (especially 65+) is increasing, and a Metrostudy report found that over the next five years, demand for low maintenance housing will exceed supply by hundreds of thousands of units. In Dallas-Fort Worth alone, the deficit is projected to reach 41,079 homes by 2019.
This means that those looking to downsize into ranch-style, easy-living homes just don’t have enough choices to work with. Equally important, the 55+ demographic comprises the majority of new home buyers, which means it makes sense for home builders to consider this segment. A market in which Epcon enjoys great appeal with home buyers.
What’s more, Epcon invests heavily in market research, building homes that have been designed based upon buyer preferences. Epcon homes enable an active lifestyle by taking care of basic home maintenance chores, such as mowing and raking, so homeowners have time to pursue the activities they really enjoy.
Over its 30+ years in the homebuilding industry, Epcon has tweaked its copyrighted floor plans according to consumer preferences. Epcon Franchise Builders then work with these popular house plans to build homes that are popular with the lucrative 55+ demographic.
Epcon communities can be developed faster
Also attractive to Epcon Franchise Builders is the speed with which they can develop – and sell through – entire communities. Unlike custom homes that can take years to build, Epcon homes follow the production building model. Since Epcon has already done the groundwork with floor plans and production schedules, Epcon Franchise Builders main challenge is to identify a suitable parcel of land and then follow Epcon’s proven building process. Because the homes are popular with the 55+ demographic, they also sell quickly, which leads to a faster return on investment.
In the NAHB’s Q3 2016 report, Chief Economist Robert Dietz pointed out that “older homeowners are able to take advantage of low mortgage rates and rising home prices, enabling them to sell their current homes and buy or rent a home in a 55+ community.”
Epcon Franchise Builders are in a robust position to take advantage of this demand for new single-family homes in the 55+ demographic. The right homes and quick development and sell-through all mean that Epcon Franchise Builders can strike while the iron is hot and stand to make significant gains in a vital segment of the home building industry.
Those looking for real estate investment opportunities should take a close look at the 55+ housing market and can rely on Epcon’s decades of experience when adding this established home building franchise to their portfolio.
Investigate the Epcon franchise opportunity
Disclaimer: The offer of a franchise can only be made through the delivery of a Franchise Disclosure Document. Certain jurisdictions require registration prior to the offer or sale of a franchise. We do not offer franchises in jurisdictions where we are not registered (or exempt from registration). Epcon Communities Franchising, Inc. 500 Stonehenge Parkway, Dublin, Ohio 43017. Minnesota Franchise Registration No. F-3531.