Building higher-density developments and focusing on an aging customer base are two strategies that could help home builders in Newfoundland and Labrador overcome the economic slump, says their association’s new president.
“As home builders we’re a resilient bunch, so we tailor our product to what the market is looking for,” said Randy Oram, vice-president of Karwood Construction and incoming president of the Newfoundland and Labrador Home Builders’ Association.
Right now that means a move away from the subdivisions full of single-detached homes that sold easily during the province’s boom times of the last decade.
Those larger, more expensive homes are a harder sell now that the province is in the middle of an economic downturn that has seen both slower home sales and fewer housing starts.
And with energy costs projected to continue to rise in the coming years, heating a large home may become unaffordable for many.
Builders have to adapt to a changing market, Oram told the St. John’s Morning Show.