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J.D. Power and Associates Reports: Overall Customer Satisfaction with Home Builders Improves Significantly in 2008, Despite Daunting Economic Challenges and Surplus Inventory Levels in the Industry

Posted : Wed, 10 Sep 2008 12:06:34 GMT
Author : J.D. Power and Associates
Category : Press Release
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Pulte Brands Rank Highest in Customer Satisfaction in 11 U.S. Markets and in New-Home Design in 6 Markets; Centex Homes and Pulte Brands Each Rank Highest in New-Home Quality in 7 Markets WESTLAKE VILLAGE, Calif., Sept. 10
WESTLAKE VILLAGE, Calif., Sept. 10 /PRNewswire/ -- Even in the face of a challenging environment marked by declining new-home prices and notably high inventory levels, many home builders are succeeding in significantly improving overall customer satisfaction in 2008, compared with 2007, according to the J.D. Power and Associates 2008 New-Home Builder Customer Satisfaction Study(SM) released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
Overall customer satisfaction averages 779 on a 1,000-point scale in 2008, up 38 points from 741(1) since 2007. Markets experiencing the largest customer satisfaction improvements include Palm Beach, Fla.; Tampa, Fla.; and Albuquerque, N.M. In addition, overall satisfaction has increased in 28 of the 29 individual markets that were also surveyed in 2007.
"Home builders have adapted well to changes in the market that have necessitated a shift from an order-taking mode to an intensified focus on sales service and negotiation with prospective home buyers," said Paula Sonkin, vice president of the real estate and construction industries practice at J.D. Power and Associates. "What is particularly impressive is that many home builders in areas where sales and home values have been most negatively impacted by local market conditions-for example, Nevada, California and Florida-fare well in the study, with the majority of markets in these states performing above the 33-market average."
"Strong home-building companies have recognized the importance of offering superior product quality, delivering homes on time and providing skilled sales staff in order to excel in hypercompetitive markets," said Sonkin. "With more negotiation occurring during the sales process, home buyers are receiving larger sales incentives. In addition, upgraded features that used to be considered options-such as granite countertops-are now being included as standard, which increases the perceived value of the home and subsequently results in increased satisfaction. With new-home prices on the decline in many areas, as well as larger inventories and renewed efforts of home builders to truly delight customers, it's a great time for consumers to consider buying a new home."
Overall Customer Satisfaction
The New-Home Builder Customer Satisfaction Study, now in its 12th year, includes satisfaction ratings for builders in 33 markets. Nine factors drive overall customer satisfaction with home builders (listed in order of importance): builder's sales staff (15%); builder's warranty/customer service staff (15%); workmanship/materials (14%); price/value (14%); home readiness (13%); construction manager (13%); recreational facilities provided by the builder (7%); builder's design center (6%); and location (4%).
Pulte brands (which include Del Webb, DiVosta Homes and Pulte Homes) rank highest in customer satisfaction among new-home builders in 11 markets. Besides the Pulte brands, other builders topping market rankings include (in alphabetical order): Cambridge Homes (which is part of D.R. Horton and ties with Lakewood Homes and Pulte Homes in Chicago); Centex Homes (headquartered in Dallas, Texas); Darling Homes (Frisco, Texas); David Weekley Homes (Houston, Texas); Eastwood Homes (Charlotte, N.C.); Granville Homes (Fresno, Calif.); John Wieland Homes and Neighborhoods (Atlanta, Ga.); Lakewood Homes (which ties with Cambridge and Pulte Homes in Chicago); M/I Homes (Columbus, Ohio); Medallion Homes (San Antonio, Texas); Minto Communities (Coconut Creek, Fla.); Shea Homes (Walnut, Calif.); Standard Pacific Homes (Irvine, Calif.); Tim Lewis Communities (Citrus Heights, Calif,); and Trendmaker Homes (which is part of Weyerhaeuser Real Estate Company and headquartered in Houston, Texas).
"In 2008, a wide variety of home builders perform well," said Sonkin. "In the midst of the volatility that has defined the overall housing market during the past two years and has caused several home-building companies to go out of business, many local and regional builders have seized the opportunity to attract and serve potential home buyers."
In addition, the proportion of homes delivered both completely finished and on time has increased to 70 percent in 2008 from 58 percent in 2007. Furthermore, the percentage of home buyers who report that construction on their new home was finished when they signed the sales contract has increased to 39 percent in 2008 from 32 percent in 2007.
"Green" Home Features
The study finds that 28 percent of new-home buyers perceive that their home is environmentally friendly, but a vast majority of these home buyers -- 75 percent -- say that their home builder did not identify the home as "green." The top green features that home buyers believe a new home should include are: energy-efficient heating and air-conditioning units; energy- saving appliances; energy-saving lighting; and temperature-controlling windows.
Sales Incentives
The study also finds that more than nine in 10 new-home buyers (92%) report receiving sales incentives. Among home buyers who report receiving incentives when purchasing their home, the average sales incentive totaled more than $16,500. The types of incentives that home buyers report receiving most often include a reduction in the base price of the home and credit toward options and upgrades.
2008 New-Home Design Study
The J.D. Power and Associates New-Home Design Study(SM), now in its second year, measures customer experiences in 33 markets with design and aesthetic aspects of the new home. Eight factors drive satisfaction with new-home design: floor plan (17%); master/primary bathroom (15%); kitchen (13%); ability to customize (13%); interior comfort/environment (12%); flooring (11%); exterior architectural design (11%); and windows and exterior doors (8%).
Overall satisfaction with new-home design has increased to 782 on a 1,000-point scale in 2008, up 36 points from 2007. Compared with 2007, the importance of the floor plan has increased in 2008. In addition, the flexibility and ability of builders to make non-standard design changes-such as relocation of an interior wall-is a particularly important new component in satisfaction with new-home design.
Pulte brands achieve the highest ranking in new-home design in six markets. Other builders topping new-home design market rankings include (in alphabetical order): Beazer Homes (headquartered in Atlanta, Ga.); Cambridge Homes (Ft. Worth, Texas); Centex Homes; Darling Homes; David Weekley Homes; Drees Custom Homes (Ft. Mitchell, Ky.); D.R. Horton (Ft. Worth, Texas); Eastwood Homes; Granville Homes; John Laing Homes (Irvine, Calif.); John Wieland Homes and Neighborhoods; KB Home (Los Angeles, Calif.); Medallion Homes; Meritage Homes (Scottsdale, Ariz.); M/I Homes; Minto Communities; NV Homes (which ties with Pulte Homes in Philadelphia); Shea Homes; Standard Pacific Homes; Tim Lewis Communities; T.W. Lewis Company (Tempe, Ariz.); and Winchester Homes (part of Weyerhaeuser Real Estate Company and headquartered in Bethesda, Md.).
2008 New-Home Quality Study
The J.D. Power and Associates New-Home Quality Study(SM), now in its second year, measures the occurrence and impact of construction problems experienced by new-home owners in 33 markets. The study utilizes an index that takes into account the number of problems that occur, the severity of problems and size of the home, and covers 41 different problem categories for the following aspects: bathroom; drywall; electrical/appliances; flooring/stairs; home exterior; interior paint; kitchen; windows/doors; and other significant problems.
Centex Homes and Pulte brands each rank highest in new-home quality in seven markets. Other builders topping new-home quality market rankings include (in alphabetical order): Classic Homes (headquartered in Colorado Springs, Colo.); C.P. Morgan Communities (which ties with John Wieland Homes in Charlotte, NC); Darling Homes; David Weekley Homes; Eastwood Homes; John Wieland Homes and Neighborhoods (which ties with C.P. Morgan Communities in Charlotte); KB Home; Lennar Homes (Miami, Fla.); Mattamy Homes (Toronto, Canada); Medallion Homes; Minto Communities; Standard Pacific Homes; Trendmaker Homes; and T.W. Lewis Company.
Home quality has remained stable since 2007. The rate of customer-reported problems decreased in 2008 to 1,151 problems per 100 homes from 1,345 per 100 homes in 2007.
The 2008 New-Home Builder Customer Satisfaction Study is based on responses from 50,837 buyers of newly built single-family homes who provided feedback after living in their homes an average of four to 18 months. The study was fielded between March and July 2008. For more comprehensive builder rankings for all 33 U.S. markets, visit http://www.jdpower.com/homes.
Markets Included in New-Home Builder Customer Satisfaction Study, New-Home Design Study and New-Home Quality Study
Albuquerque, N.M.
Atlanta, Ga.
Austin, Texas
Central Valley/Fresno, Calif.*
Charleston, S.C.
Charlotte, N.C.
Chicago, Ill.
Columbus, Ohio
Dallas/Ft. Worth, Texas
Denver/Colorado Springs, Colo.
Ft. Myers/Naples, Fla.
Greensboro, N.C.*
Greenville, S.C.*Houston, Texas
Inland Empire, Calif.
Jacksonville, Fla.
Los Angeles/Ventura County, Calif.
Las Vegas, Nev.
Minneapolis, Minn.
Northern New Jersey*
Orange County, Calif.
Orlando, Fla.
Palm Beach, Fla.
Philadelphia, Penn.
Phoenix, Ariz.
Raleigh/Durham, N.C.
Sacramento, Calif.
San Antonio, Texas
San Diego, Calif.
San Francisco Bay Area, Calif.
Tampa, Fla.
Tucson, Ariz.
Washington, D.C.

*New markets added to the study in 2008.


Top Three Builders in Overall Customer Satisfaction by Market

Albuquerque, N.M.*
Highest: Pulte Homes
Centex Homes

Atlanta, Ga.
Highest: John Wieland Homes and Neighborhoods
Sharp Residential Builders
David Weekley Homes

Austin, Texas
Highest: David Weekley Homes
Centex Homes
Standard Pacific Homes

Central Valley/Fresno, Calif.
Highest: Granville Homes
Centex Homes
Wathen-Castanos

Charleston, S.C.*Highest: Centex Homes
Ryland Homes

Charlotte, N.C.
Highest: John Wieland Homes and Neighborhoods
Centex Homes
Pulte Homes

Chicago, Ill.
Highest: Cambridge Homes (tie)
Highest: Pulte Homes (tie)
Highest: Lakewood Homes (tie)

Columbus, Ohio
Highest: M/I Homes
Dominion
Centex Homes

Dallas/Ft. Worth, Texas
Highest: Darling Homes
Huntington Homes
Fox & Jacobs

Denver/Colorado Springs, Colo.
Highest: Shea Homes
John Laing Homes
Pulte Homes

Ft. Myers/Naples, Fla.
Highest: Pulte Homes
DiVosta Homes
Lennar

Greensboro, N.C.
Highest: Eastwood Homes
D.R. Horton
K. Hovnanian

Greenville, S.C.
Highest: Eastwood Homes
Lennar Homes
Ryan Homes

Houston, Texas
Highest: Trendmaker Homes
Highland Homes
KB Home

Inland Empire, Calif.
Highest: Del Webb
Shea Homes
Meritage (tie)
Standard Pacific Homes (tie)

Jacksonville, Fla.
Highest: Pulte Homes
KB Home
Mercedes Homes

Los Angeles/Ventura, Calif.
Highest: Pulte Homes
John Laing Homes
Standard Pacific Homes

Las Vegas, Nev.
Highest: Centex Homes
Meritage Homes
Del Webb

Minneapolis, Minn.
Highest: Centex Homes
Lennar
Mattamy Homes

Northern New Jersey*
Highest: Del Webb

Orange County, Calif.*
Highest: Standard Pacific Homes
John Laing Homes

Orlando, Fla.
Highest: David Weekley Homes
Pulte Homes
Centex Homes

Palm Beach, Fla.
Highest: Minto Communities
Lennar
Centex Homes

Philadelphia, Penn.
Highest: Del Webb
Pulte Homes
Ryan Homes

Phoenix, Ariz.
Highest: Shea Homes
Ashton Woods
T.W. Lewis Company

Raleigh/Durham, N.C.
Highest: Centex Homes
Lennar
Drees Custom Homes

Sacramento, Calif.
Highest: Tim Lewis Communities
Del Webb
John Laing Homes

San Antonio, Texas
Highest: Medallion Homes
Highland Homes
Centex Homes

San Diego, Calif.
Highest: Shea Homes
Lennar
KB Home

San Francisco Bay Area, Calif.
Highest: Del Webb
Pulte Homes
Centex Homes

Tampa, Fla.
Highest: Centex Homes
Pulte Homes
David Weekley Homes

Tucson, Ariz.
Highest: Pulte Homes
Lennar
Meritage Homes

Washington, D.C.
Highest: Pulte Homes
Van Metre Homes
Winchester Homes

*No other builder in this market performs above the market average.


Highest Ranked Builders in Home Design by Market

Albuquerque, N.M.
Pulte Homes

Atlanta, Ga.
John Wieland Homes and Neighborhoods

Austin, Texas
David Weekley Homes

Central Valley/Fresno, Calif.
Granville Homes

Charleston, S.C.
KB Home

Charlotte, N.C.
John Wieland Homes and Neighborhoods

Chicago, Ill.
Cambridge Homes

Columbus, Ohio
M/I Homes

Dallas/Ft. Worth, Texas
Darling Homes

Denver/Colorado Springs, Colo.
John Laing Homes

Ft. Myers/Naples, Fla.
Pulte Homes

Greensboro, N.C.
D.R. Horton

Greenville, S.C.
Eastwood Homes

Houston, Texas
Darling Homes

Inland Empire, Calif.
Meritage Homes

Jacksonville, Fla.
Beazer Homes

Los Angeles/Ventura, Calif.
Pulte Homes

Las Vegas, Nev.
Centex Homes

Minneapolis, Minn.
Centex Homes

Northern New Jersey
Del Webb

Orange County, Calif.
Standard Pacific Homes

Orlando, Fla.
David Weekley Homes

Palm Beach, Fla.
Minto Communities

Philadelphia, Penn.
NV Homes (tie)
Pulte Homes (tie)

Phoenix, Ariz.
T. W. Lewis Company

Raleigh/Durham, N.C.
Drees Custom Homes

Sacramento, Calif.
Tim Lewis Communities

San Antonio, Texas
Medallion Homes

San Diego, Calif.
Shea Homes

San Francisco Bay Area, Calif.
Shea Homes

Tampa, Fla.
David Weekley Homes

Tucson, Ariz.
Pulte Homes

Washington, D.C.
Winchester Homes


Highest Ranked Builders in Home Quality by Market

Albuquerque, N.M.
Centex Homes

Atlanta, Ga.
John Wieland Homes and Neighborhoods

Austin, Texas
David Weekley Homes

Central Valley/Fresno, Calif.
KB Home

Charleston, S.C.
Centex Homes

Charlotte, N.C.
C.P. Morgan Communities (tie)
John Wieland Homes and Neighborhoods (tie)

Chicago, Ill.
Pulte Homes

Columbus, Ohio
Centex Homes

Dallas/Ft. Worth, Texas
Darling Homes

Denver/Colorado Springs, Colo.
Classic Homes

Ft. Myers/Naples, Fla.
DiVosta Homes

Greensboro, N.C.
Eastwood Homes

Greenville, S.C.
Eastwood Homes

Houston, Texas
Trendmaker Homes

Inland Empire, Calif.
Standard Pacific Homes

Jacksonville, Fla.
Pulte Homes

Los Angeles/Ventura, Calif.
Pulte Homes

Las Vegas, Nev.
Centex Homes

Minneapolis, Minn.
Mattamy Homes

Northern New Jersey
Del Webb

Orange County, Calif.
Standard Pacific Homes

Orlando, Fla.
David Weekley Homes

Palm Beach, Fla.
Minto Communities

Philadelphia, Penn.
Del Webb

Phoenix, Ariz.
T.W. Lewis Company

Raleigh/Durham, N.C.
Centex Homes

Sacramento, Calif.
Centex Homes

San Antonio, Texas
Medallion Homes

San Diego, Calif.
Lennar

San Francisco Bay Area, Calif.
Centex Homes

Tampa, Fla.
David Weekley Homes

Tucson, Ariz.
Lennar

Washington, D.C.
Pulte Homes

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on home building and home improvement; car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw- Hill Companies.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com.
 Media Relations Contacts:
 Jeff Perlman
 Brandware Public Relations
 Agoura Hills, Calif.
 (818) 706-1915
 jperlman@brandwaregroup.com

 John Tews
 J.D. Power and Associates
 Troy, Mich.
 (248) 312-4119
 john.tews@jdpa.com

 Syvetril Perryman
 J.D. Power and Associates
 Westlake Village, Calif.
 (805) 418-8103
 syvetril.perryman@jdpa.com
No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. http://www.jdpower.com/corporate
(1) Prior to 2008, customer satisfaction index scores for the New-Home
Builder Customer Satisfaction Study were calculated on a centered-to-
100 scale. This score from the 2007 study has been converted to a
1,000-point scale.

Available Topic Expert(s): For information on the listed expert(s), click
appropriate link.
Paula Sonkin
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=58145

SOURCE J.D. Power and Associates

Copyright © 2008 PR Newswire. All rights reserved.




Article : J.D. Power and Associates Reports: Overall Customer Satisfaction with Home Builders Improves Significantly in 2008, Despite Daunting Economic Challenges and Surplus Inventory Levels in the Industry
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