D.R. Horton cornering market on entry-level buyers with Express Homes

[thelakelander]

Interesting concept. I wonder if it would work for the urban core?

By Carole Hawkins, Staff Writer

Brandi Thibeault was ready to buy a home, but she and her husband couldn't find one they wanted.
They hoped to stay near Green Cove Springs and at a price range they were accustomed to as renters — about $1,000 a month.

That translated to a $150,000-$160,000 home, hopefully one with four bedrooms, to accommodate their four young children.

They found foreclosures. Nice on the outside, run down on the inside and needing repairs.

There were new homes in the Branan Field area that fit their needs, but they cost more than $200,000.

The family landed in Magnolia West, an Express Homes community by D.R. Horton.

Their four-bedroom, two-bathroom house has a washer, dryer, refrigerator and a range, all brand new and with warrantees. Total cost: $163,000.

"We really like it," Thibeault said. "It's definitely a good option for an entry-level buyer."

At a time when homebuilders have been reluctant to dip their collective toe back into entry-level product, D.R. Horton is proving the market is there.

The nation's largest homebuilder tripled sales of its entry-level Express Homes year-over-year during the quarter that ended March 31.

The "no-frills" homes forgo granite countertops and tile floors in exchange for Formica, basic carpet and vinyl. Prices locally start at $125,000 for a 1,540-square-foot home.

Targeting millenials

Nationally, about 2,000 Express Homes sold in the quarter. The line is now 18 percent of all homes sold by the company. In the Jacksonville area, the growth can be counted by developments. Express Homes sell in seven communities today, up from just two a year ago.

The product roll-out was well-timed.

Full article: http://www.jaxdailyrecord.com/showstory.php?Story_id=545989

[mtraininjax]

Great article! The average price of a home in Jacksonville is rising, I have seen some estimates as high as $202,000. One thing Millennials do not remember is that they can keep 250k if single or up to 500k if married on the capital gains on the sale of the house, once they live there for 2 years.

[mbwright]

I would hope the no frills construction is not something that will fall apart in a few years, thus costing expensive repairs.  I do think this is a great idea.  Sometimes builders use such a low grade/quality you are almost on par with a mobile home.