OVERVIEW: Current slump nothwithstanding, the explosion of home ownership, residential construction and home values have turned builders into brands. Centex, Toll Brothers, Pulte are climbing the brand equity chart.

Recently, another large builder, BeazerHomes, was the subject of stories in North Carolina related to minority-lending practices and foreclosures. There were other questions about loan originations. [1] The FBI subsequently began an inquiry. The company steadfastly denies any wrongdoing as the CEO also talked about doing business in a [2] “very difficult operating environment.”

RESEARCH QUESTIONS:

1. Have the major home builders crossed the threshold into consumer brands with distinctive attributes in the minds of prospects?
2. Do homebuyers make distinctions or value purchasing judgments beyond location, price and quality? If so, how might the Beazer news affect prospective new home buyers?