SAN DIEGO-Embracing and understanding diversity and how it impacts your business are key to success in the homebuilding industry, said panelists during a Consumer Insights Forum at PCBC here last week. With America becoming more of a melting pot year after year, it behooves multifamily developers and operators to know their market's culture and actively appeal to it.

Rather than putting out a blanket policy that aims to attract all cultural groups, actually studying and learning about the specific cultures you're targeting is more effective, according to speakers at the “Diversity is Reality” panel. Moderator Carina Hathaway, VP sales and marketing for Brookfield Homes, spoke of the importance of cultural training for all sales-office employees at building companies. Including elements like metric measurements on blueprints, ads and materials with multiple languages and home-design features that address the needs of a particular culture—such as feng shui or a second master suite in multigenerational homes—can go a long way toward making that culture feel welcome and understood.

Gary Ware, director of i.d.e.a. brand, said that right now ethnic groups make up 32% of total US population—61% of California's—but by 2045 ethnic groups will become the general market. He was quick to point out that while diversity means openness to everyone, it doesn't mean trying to target everyone by generalizing so much that your message resonates with no one. Rather, “understand the features of a particular ethnic group” through research to gain a deep knowledge of their cultural beliefs and differences, identify what's important to them and understand how your product aligns with them.

Rick Fletcher, VP sales and marketing at MBK Homes, commented that foreign buyers make up $82.5 billion of new-home sales in this country, concentrated mostly in Florida, California, Arizona and Texas. Fletcher said his firm (whose initials stand for Mitsui Bussan Kaisha) embraces foreign cultures by using feng shui consultants during the design process—which yields designs like no showers or toilets over entryways, no stoves across from sinks to avoid a fire/water dichotomy, a warming kitchen that includes a mini-fridge and microwave downstairs for multigenerational homes.

Fletcher pointed out the need to educate brokers on dealing with different cultures as well. “Brokers need to be able to bridge the communication gap between cultures.” 

During the panel “No Risk, No Reward: The Value of Different,” panelists discussed why it's important to offer alternative housing choices for consumers. Moderator Cindy Harvey, a principal with Kephart, said that most people look at home buying as a good investment, and architect Mark Scheurer added, “The best way to compete with the big guys is to be different.”

Dean Wehrli, VP of John Burns Real Estate Consulting, said the “aging in place” trend is growing stronger, so there may be a need to develop a different type of room for aging adults. He cautioned that innovation is not always the right answer, but it can be, and that innovation often offers high risk along with high reward.

Scheurer showed and explained to attendees some innovative housing concepts he designed that included Palihouse, a four-story urban hotel in West Hollywood that converted half of its rooms to for-sale service condos so that residents would get the benefits of living in a high-quality hotel without the high costs associated with renting a room there; and Montelucia Resort in Paradise Valley AZ, which is surrounded by custom homes whose residents can take advantage of the adjacent resort's amenities. Thinking outside of the box was the impetus for these developments.

However, cautioned Eric Brown, VP client resources for William Hezmalhalch Architects Inc., don't get too cocky with being innovative. “Being a visionary in homebuilding means you filled a niche before everyone else jumped on top of you.” He also cautioned against being different just to be different, which circles back to the ultimate message about diversity: “Know your market.”