Project Profiles

Strategic Market Entry
Location: Sussex County, DE
Client: Mid-Atlantic Builders
 

During the housing boom of 2002-2005, Sussex County, DE was an attractive market for retirees and second-home buyers. Would be purchasers flooded the market, coming from the Washington, Baltimore and Philadelphia metropolitan areas. While many home builders dove into the area head first, and without research, Mid-Atlantic Builders chose to carefully study the market, making educated and deliberate moves. The strategy paid off with zero exposure in the decimated Sussex County housing market.
 
Fulton Research approached this project with the intent of carefully guiding Mid-Atlantic into the market. The market demand and migration analysis showed the depth of market for retirement and second-home buyers who live in the three primary metropolitan areas. The county was then segmented into submarkets, all with like character of homes and similar migration patterns. For each submarket, buyer profiles were developed and the competitive housing market was thoroughly analyzed by product type. Finally, a pipeline analysis of the supply of residential lots revealed the market was grossly oversupplied. Due to the significant supply of competitors and residential lots, Mid-Atlantic Builders decided not to enter this market.

 

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