FORT WORTH, Texas–There’s a developing twist in the market for so-called “first-time buyer homes:” It’s not just Millennials who are purchasing.
Home builder D.R. Horton reported that it is seeing a “larger mix of older buyers” purchasing its entry-priced “Express” homes. The company shared the findings during an earnings call.
D.R. Horton said that Express Homes accounted for 28% of its closings and 20% of its revenue during the most recent quarter. As a result, it has increased the number of markets where it sells homes in that price range, and it expects those markets will only grow.
“We commented in prior quarters about markets like Florida where there are perhaps more retirees,” CFO Bill Wheat told analysts during the call. “We have seen more of larger mix of older buyers buying the Express Homes because they see the same value there.”
The National Association of Realtors reported last week that first-time buyers made up one-third of all buyers of previously-owned homes in its most recent analysis. That figure, however, is still below the 40% share that first-time buyers have typically represented.