Beazer Homes 2003 Annual Report We're Better Aligning Buyers, Markets and Products
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Home buyers today comprise a far more diverse group than the traditional “married with two children” of yesteryear. Consider these facts:

  • Married couples without children and singles dominate household growth; indeed, 60 percent of single women own their own home.
  • Immigrants have contributed 25 percent to household growth in recent years, while minorities will account for nearly two-thirds of household growth over the next decade.
  • Baby boomers, the largest population segment in America, boost the number of 45 – 64 year olds, increasing the demand for amenity-rich homes, second homes and active adult community homes.

A more diverse home-buyer profile implies more diverse needs. A first-time buyer with a family and a single first-time buyer may want the same price, but the family may want a larger home, and the single person may want more design amenities. Both of these buyers fall within our target market, yet their purchasing decisions and motivations may be far apart. Fortunately, we are better positioned than ever to offer a diverse line of products to the increasingly diverse population in the markets we serve.


Household formation is a primary driver of housing demand.

A More Diverse Product Portfolio

Historically, Beazer Homes has focused on value-oriented product offerings that target entry-level and first-time move-up buyers. While the focus on value has remained consistent, we have broadened our product expertise in recent years through acquisition. An example is found in Denver, where Sanford Homes, acquired two years ago, features homes that start at a higher price point than Beazer Homes products in other markets. Last year’s acquisition of Crossmann Communities in the Midwest introduced a line of homes at price points lower than the Beazer Homes average, enabling us to better target buyers for whom price is the primary driver in the buying decision. The net effect is that Beazer Homes collectively has a broader range of homes at more diversified price points in its portfolio today, all of which build upon the Beazer Homes tradition of providing value. And, even more important, we have the necessary internal expertise to build homes targeted to specific segments of the market. Our ability to put this expertise to work throughout the Company in different markets is a major opportunity to drive top-line growth.


Over the past 30 years, the definition of the American household has diversified dramatically.

As such, we are undertaking a focused effort on a national basis to effectively identify our target buyers in each of our geographic markets and deploy the diverse product expertise we have established across markets. A major emphasis, therefore, will be on growth in existing markets by effectively increasing depth and breadth in those markets. This allows us to meet the needs of more buyers in each market.

We are employing various market research tools to segment our customers based on lifestyle and psychographic preferences. At the same time, we conducted a comprehensive review of all our home plans through “Plan-Fest,” which catalogued and aligned them to the various customer segments using uniform national guidelines. This will enable us to more effectively deploy our product expertise to respond to evolving local market needs. Ultimately, we can better leverage local market expertise, existing infrastructure and land positions under this approach. The results we believe will be three-fold. Broader product offerings will drive top-line growth. More consistency and standardization will enhance margins. And, most important, we will build more of the homes that best fit our buyers’ diverse needs, reinforcing the customer-centric focus that is critical to our brand.


Foreign-born residents have contributed fully one-quarter of household growth in recent years.


Minorities are expected to contribute nearly two-thirds of household growth through 2010.