Sunday, November 17, 2019

Could Independent New Home Builders Become Obsolete?

Millennials are becoming the force driving how everything will be bought and sold. Wine drinking among them has dropped considerately while the sales of craft beer is shooting through the roof. Micro Breweries are becoming the “new fast food” places the Millennials love to visit.


They love their apps and have no hesitation trying one after another until they find a few they use until the next batch of apps appear. Just ask fast food and mainstream restaurants. If they don’t offer GrubHub, DoorDash or Uber Eats to their online customers they will soon find their market share dwindling quickly.

Now another new entry into the food app war is making vast inroads. CloudKitchens allows their kitchens to be used as prep kitchens for large restaurants, gives independent chefs and cooks kitchen space for preparing ‘delivery only’ food and Food Truck operators are using the kitchen space to expand their menu selections.

Millennials apparently don’t like going to the grocery store store, getting a cart and walking up and down every aisle. They now use the grocery store’s app to select their groceries and have strangers pick their items, bag them and have them ready for pick-up or delivered directly to their home. Walmart will even put away your refrigerated and frozen groceries in your refrigerator.

With the slow erosion of on-site and modular new home builders serving the single family housing market, look for new apps to appear to fill the void.

Tract builders are already using a combination of websites and apps to give the Millennial new home buyer a way to shop for their new home, order it, finance it and arrange a move-in date all without leaving their sofa.

New site built and modular homes may soon fall into the same scenario of having the customer visit a website and tie it to an app where design, planning, financing and all the other components will be managed over the Internet without the customer ever personally meeting the builder.

Single Family modular home factories may soon begin offering total vertical integration using apps to design, sell and finish the customer’s home or maybe modular home builders will form alliances or franchises and work to develop websites and apps to bring the entire homebuilding process onto the customer’s sofa just like buying groceries from home.

With the lack of new home builders replacing those builders that are retiring in record numbers, building programs to replace them will become more Internet based and to be quite honest, Millennials couldn’t be more pleased.

6 comments:

Builder Bob said...

Coach, it took me a few minutes to understand what you were talking about but then I began to understand.

Losing their modular builder network could be terrible for any factory. But who is going to develp those apps. Builders don't have teh money to do it. Factories have never ever taken the lead to do anything to help themselves. That only leaves those tech people that wouldn't know a modular from a manufactured home to create and manage the app.

Then who will do all the things you say this app could do? Again neither the builder nor the factory would do it. That only leaves "modular home builders will form alliances or franchises and work to develop websites and apps"

I dont think the MHBA or the BSC can be involved in any type of alliance so the builders will have to do it themselves and that is probably not going to happen without someone like you putting it together.

As far as I know there is only one modular franchise that can develop that thype of app and it is an unknown quantity at this point.

If we don't find a leader in this app thing soon, modular single famile homes could become a smaller part of the factories business until it finally disappears.

Kevin said...

Modcoach is right with this idea as we need to look no further than what Alberto Pina has accomplished at Braustin Mobile Homes in Texas. His YouTube channels, apps for service and Virtual online purchasing is exactly what this article speaks to. Check it out at https://www.findmymobilehome.com

This young entrepreneur is very innovative in his ideas on purchasing homes online using VR technology. https://www.findmymobilehome.com/in-the-news/

My wife and I are in our sixties and my wife's schedule as an RN is hectic and she/we have been purchasing almost everything via the web for years now, including ordering groceries from WalMart. So busy lives required we use the best and trusted resources available to us. Online purchasing from Amazon and Walamrt is at an all time high and I think I read an article that Costco was selling Tiny Homes via their website.

My wife has embraced this method of shopping and she is no techie by any means, on the other hand I use technology everyday and have for almost 30 plus years and I am the one who is hesitant to embrace this culture.

Best Wishes to Alberto and his Team and to the others who can accomplish the level of customer appreciation as Braustin has in Texas.

Bill Hart said...

Some people live and learn, some people just live..as my old latin teacher love to say. The off site franchisee industry was born east of the rockies by folks like national homes' jim and george price, gene kurtz's inland homes, kingsberry our of ft paine, alabama. They had exclusive territory protected vertically integrated disposition. Over the years..however.. greed, buying too much raw ground ahead,and of course ironically simply making many a franchisees a millionaire diluted that era. Later mod companies tried that the same system but then too got greedy and simply avoid the exclusivity aspect by just making multi brands in one site so they could "franchise" three builders in the same area! Fast forward Coach..Yogi said it well..Gosh its deja vu all over again. Anyone wanting still more words of wisdom from old guys s email me. I dont frequently know exactly just what to do..but sure as hell know what no to do...bill

James said...

I am working on putting together this very approach. It’s going to take a while and lots of money, but it is definitely the future.

Here is my site: https://builtprefab.com

Kyle said...

Branding...That's what Braunstein does well (YT, Podcasts, FB, IG, Articles, media, media, media).
It's hype, they haven't created a "new" model by any means.

They don't sell outside of Texas...why?
They don't have the REAL boots on the ground to accomplish anything at scale outside of their backyard.

When they do sell outside of their territory it will catch up to them.
They're servicing too broad a customer base (turn-key, financed) to make any real progress without massive infrastructure.

Create as many apps as you want...they ain't gonna install and service the home ipo humans (not yet at least).

Bill Hart said...

Your right of course Kyle, you expands your geo from your core location...only ...as fast as you can ...more than just adequately.. service the new expanded geo. That took National, Inland and Kingsberry, multi... years ...and lots of additional fabrication plants opened up every couple three hundred miles, plus training new field techies and the regional reps to support newly acquired buz savvy well capitalized new franchisees. Case in point.I'm sure there are several. Brian's Module in Pitt. Its an good example of the time ..years..it takes..to first ..just create a startup to and get to a ...compliant level...then to just plant your first couple homes in the ground. Go getem Brian! He will be flying soon.