AgentMarkets & Economy

KB Home counting on millennial home demand to boost sales

  • Millennial demand is expected to boost sales specifically in Sunbelt states.
  • Homebuilders are focusing more on for-sale product that is more urban in nature.
  • KB Home has a significant backlog of home sales orders.

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A trio of publicly-traded homebuilders will deliver a larger volume of properties this year to accommodate millennial home demand. "We anticipate (housing) demand will be boosted by the large millennial population that is expected to be purchasing more homes in 2016," said Jeffrey Mezger, CEO of Los Angeles-based KB Home during a recent earnings conference. The homebuilder currently has a backlog of 4,000 sales orders and is likely to surpass its 2015 home delivery total of 8,196 residences this year. In total, the homebuilder expects to invest at least $1.5 billion in land and development. The majority of its communities are located in Sunbelt states, with an average sales price around $350,000. Millennial home demand fueling niche market Meritage Homes notices increased demand from millennials seeking closer-in, more infill product that's still affordable. In response, the homebuilder is making the construction of "entry-level plus" communities a larger focal point in...