Develop Austin Texas

Customer satisfaction with home builders is up, driven by "intensified competition"

The New Home Builder Customer Satisfaction Survey from J.D. Power and Associates generates satisfaction ratings for 24 markets across the US, including Austin. 12 home builders in Austin were examined and rated.

For the second year, overall customer satisfaction in the 24 markets is up, to an average of 811 points out of 1,000 – up 32 points (from 779) in 2008, with overall satisfaction increasing in 22 of the 23 markets studied both years.

Problems reported decreased in all of the 23 markets studied both years. (The most common quality issues were landscaping, heating/air conditioning, and kitchen cabinet quality and finish.)

The reason for the positive increase in consumer ratings? Researchers have tied it to increased competition among home builders in the recession. “Fierce competition among home builders has led to a market where only the strong survive,” says Paula Sonkin, VP of the Real Estate and Construction Industries Practice at J.D. Power and Associates. “This is great news for new home buyers – particularly first time buyers – since builders are offering unprecedented high levels of quality, value and service at relatively low prices.”

Customers can also expect their homes to be completed faster: homes delivered both completely finished and on time increased to 76%, from 70% in 2008.

In this market, what consumers value has changed: the importance of workmanship and quality “increased notably” from the year before, whereas the builder’s sales staff and construction manager became less important. Buyers are looking for more quality for their money, and care less about the customer service experience. 

Peaceful Hill Country Escape, featuring a green rainwater collection system

Another point of interest for buyers is the Green factor: 31% of buyers qualify their home as environmentally friendly, but 65% say their builder did not indentify their house as being so. Buyers are seeking out Green homes to save on power and heating, to save water, and to reduce their impact on the environment, in that order. According to Sonkin: “Builders that neglect to point out environmentally friendly home features to buyers are missing a very important opportunity. New home buyers are increasingly seeking out green home features and the benefits they bring in terms of energy and cost savings.”