Meritage Homes Unveils Design Collections, Boosts Innovation

Meritage Homes Corporation (NYSE:MTH) has introduced Design Collections - a transformative, industry-first approach to transform the new home interior design process for move-up buyers.

Traditionally, most buyers would experience a paradox of choice due to an over-abundance of options that often cause difficulty in decision making. To reduce homebuyers’ pain in building a new home, Meritage Homes commissioned the new Wakefield study that addresses key barriers centered on three main concerns: time needed to design the interior of their new home, making cohesive style choices and sticking to their budget.

Per the study, nearly 40% of buyers spent more than 20 hours in the design center throughout the course of the building process. Moreover, 37% of buyers were found unhappy with the final product and 26% of them noticed a mismatch in their design selections. Notably, 45% of buyers noted that they exceeded their budget in upgrades by more than $21,000 on average.

Markedly, Design Collections enable buyers to confidently and efficiently style their homes within budget through the Studio M Design Center. At the Studio M Design Centers, buyers can select from a variety of different styles, from traditional, to transitional, to modern while streamlining the entire process. Notably, the company has coupled the new offering with the transparent pricing model to ensure buyers understand costs clearly, while saving them time.

The design centers and collections are now available across communities in Arizona, California, Colorado, Florida, Georgia, North Carolina, Tennessee and Texas, and will be opened to other markets early this year.

Meritage Homes’ Strategic Initiatives to Drive Growth

Meritage Homes remains focused on growing demand for entry-level homes with its LiVE.NOW product. The company is making homes out of speculations that promise faster delivery at a lower cost. Notably, its strategic shift to a pure-play entry-level and first-move-up builder is expected to yield higher absorptions going forward.

Additionally, it has reduced the average selling price for homes in order to address the needs of millennials (more than 83-million market, according to the Census Bureau) and baby boomers. Notably, since millennials are now showing a tendency to set up homes, demand is likely to pick up, which will lead to higher volumes.

Shares of Meritage Homes have outperformed the Zacks Investment Research

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Written By: Zacks Investment Research