Despite all the bad new and economic indicators there is still one segment of the home building market thriving. The market to build homes for the affluent.
For proof look no further than Disney. Last week they launched a new residential development with homes priced at $1.5 million to $8 million. The reason, because there is demand in the affluent market which has not been met.
In recent years, Disney has launched several products aimed at the affluent. Everything from wine tastings to vip-front of the line tours. Each time aimed right at the affluent and each time gobbled up, completely filling the available slots.
It will be some time before we can say for sure if this new development is a success. However, even in a market where average home prices are down 50%, I think it will succeed wildly.
The main reason I am so optimistic is because the affluent still have plenty of money and are still spending it just as fast if not faster than before. They see the good deals available right now.
Everywhere I look this affluent market is always under severed, even though they are some of the best buyers around and are still spending.
If you are still interested in making good money in construction, you should be at the least putting some of your effort into this market. Even if you are already making good money in your current market, it would be criminal to let this great market slip by unused.
The affluent at not harder to find or harder to market to, they just expect a higher level of value. Moreover, for this value they are willing to pay a much higher price.
To see some ideas for adding value look back at my post on helping your customer. It often is the little things the affluent want. Completing work before a big dinner party, extra detail to the visible, making their life easier.
The little things like making sure they have a place to cook during a kitchen makeover. Or offering a service where you work with an interior designer to create a one-stop shop.
The extra time you spend right now setting up a product to offer the affluent will pay for itself over and over again in the next few years.