Highway 40 Shutdown Creates New Opportunities for Regional Growth
FOR IMMEDIATE RELEASE
Highway 40 Shutdown Creates New Opportunities for Regional Growth
Residential construction advisor says St. Louis market will find new development oases
October 11, 2007: ST. LOUIS – The old adage reads, “Where a door closes, a window opens.” One local residential construction analyst figures the reconstruction project of highway 40, while perceived as a headache for motorists and businesses along the construction route, can actually create new opportunities for municipalities to market themselves to builders.
According to Zanola Company President Joe Zanola, cities such as Indianapolis, Kansas City and Detroit are the ones in serious trouble when it comes to the stability of their new home market. In St. Louis he says there are some great opportunities for builders to serve more specialized markets, rather than the single-family market that has dominated for so many years.
“Opportunities exist for homebuilders right now in niche markets that are currently being underserved,” Zanola said. “We have become so entrenched in providing for the single family market, we might have forgotten that it’s not the only one there is.”
Young first-time buyers and baby boomers are the two largest emerging markets now being underserved in new home construction. These segments have a very different set of demands than traditional single family home buyers. Homes with two master bedrooms and smaller low maintenance homes are two of the products that fit these two growing demographics of home buyers.
Location will also be important for builders to consider, looking into the near and distant future. Currently, one out of every four homes built in the St. Louis market is in St. Charles County. The Highway 40 reconstruction should give other regions, such as North St. Louis County, the opportunity to market themselves to developers as candidates for growth.
Zanola feels that the highway shutdown will take people out of their routines and encourage a more energetic and social climate. As developers begin scanning the map for the next opportunity, Zanola sees areas such as St. Clair County in Illinois shaping up to be solid development oases for homebuilders in the years ahead.
Zanola said buyers now like to envision their future in a home. They’re more analytical and they pay more attention to the home’s surroundings. For this reason, he believes discounts as a fading trend as customers demand community amenities and incentives from builders. It’s important that developers consider this and create environments that these buyers will want to call home five, ten and 15 years from now.
Zanola Company specializes in conducting and analyzing research to advise the home builders of greater St. Louis wit trends based on real world data. President and founder Joe Zanola has more than 30 years of experience in the St. Louis building industry. For more information, the company can be reached at 314.918.7200.
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