Housing Giants - August 25, 2008 - (Page 29) Do you really neeD Density specialists anD marketing pros? Charlotte, N.C.-based consultant Chuck Graham believes one of the most striking differences in home building after the market recovers from the current downturn will be a new emphasis on density, even in markets east of the Mississippi River that have yet to see densities greater than three houses per acre. “Today is not too soon to begin reinventing your company,” Graham says. “Fourdollar gasoline is really going to change housing. Markets will contract geographically. Ground will be more expensive because everyone will be competing for infill sites and ‘A’ locations. So densities will increase. Land planning and product development skills will be more critical.” Graham thinks it will be a good idea for builders in markets where density is a new idea to head for the West Coast very soon to recruit land planners and product development specialists with experience dealing with density issues. “The lead time needed to develop an effective organization for this emerging market will be extended,” he says. “The management skills you need will be different.” Some builders tuned into this line of logic without ever listening to Chuck Graham. David Weekley is one. “We’ve added some people in the last year to deal with some of these issues,” Weekley says. “One is a density guy. We got him from the Northeast Coast, where they do more of it than in any of our markets. We’ve also hired an active-adult specialist.” Tom Krobot of Ashton Woods sees it differently. “The only way you’ll get density into some of these large-lot markets is by getting the zoning changed. And the people on those city councils don’t care what happens to builders or the price of housing. Until the people accept it, it won’t happen, and the people won’t accept it until they feel pain personally.” Ponte Vedra, Fla.-based consultant and Housing Giants columnist Michael P. Kahn, however, agrees with Graham. “Infill will be hotter than ever. But lot prices will have to come down to a level that allows builders to make a profit. Cities will have to accept density, or they’ll get no building starts.” Graham also sees one more interesting change in housing after the recovery: a new emphasis on marketing and more marketing managers rising all the way to CEO level. “As home building has matured as an industry, the kind of managers recruited into division president jobs evolved from construction backgrounds to finance. Marketing will be next. Marketing, especially online, will be critical to the success of companies. Markets will be thinner, buyers more discerning and competition will be cut-throat.” Better call your favorite headhunter, and start looking for some of these new management specialists. Time’s a-wastin’. www.Housinggiants.com 8.25.08.Housing giants 29 http://www.housingzone.com/giants/article/CA6576392.html http://www.housinggiants.com
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