Rick Spooner, Sales Manager for Heartland and Hawthorne Homes says, “It becomes a function of many different things, most of it market-driven. It comes from what people want to buy. We’re in the starter market so we try our best to keep a price point but the rising cost of land and the densities we can achieve on that land will determine the price. If we can’t bring that combination together on a piece of land and bring it in at a price the market will accept, then we can’t build it.”

Product development teams will scour several different markets to find out what’s new, what’s hot, and what’s upcoming. To do this effectively, they must travel to different centers such as Vancouver, Denver, Eastern Canada, Europe, and Western United States.

Sometimes an involvement in another project will help a builder come up with a concept. Like doing market research, they’ve already had a feel for what the customer might buy. However, it’s difficult to predict where the market is going to go, so there is a level of risk involved. The best approach is to take an educated guess by studying the market. In any case, location and proximity to amenities are two key elements that go into any project.

Spooner adds, “Ideas come from all departments. Obviously we’ll get a lot of feedback from our sales teams. They’re the ones that end up having the most interaction with the clients and have a better idea of what people are looking for. We’ll take all of that and incorporate it with what is achievable under code, what goes together well with construction. We also shop the market often to see what is selling well.”

“My product development team is made up of architects and people that have been involved in the industry for many years,” says Unger. “The team supports one another and allows for the atmosphere of people welcoming new concepts and ensuring there is a fit with the company.”

Housing often goes in trends. Calgary is fortunate to have a forward-thinking and creative group of builders and developers. Most of these firms have learned from other markets.

“It’s what we can envision will sell,” admits Spooner. “You’re also restricted to what your trade base is. If you go to Southern Ontario, you’ll see tons of brick. Brick is more inexpensive there because they have a lot of bricklayers and the price for a bricklayer is nowhere near what it would be out here. That’s why here you see a lot of cultured stone and siding. It also comes down to what the customer will pay for something. Trades and products that are more readily available are more affordable.”

Unger adds, “Although we create several ideas ourselves, it’s also important to see the influence of what is happening in the industry in other places. You walk a fine line when you bring those concepts back home. We need to involve the City and the City needs to have a willingness to understand and accept these concepts and allow us to build them.

“There are some concepts that I don’t think the City would allow. The codes currently don’t accept them. But there are examples of where developers approached the city with new concepts and had them approved. As a developer, if we can introduce new product and new ways of doing things, and allow a little bit of flexibility in the way we develop product, everyone will benefit. Calgary has the ability, the money, and the will to act as a leading force within the general marketplace. I think we in Alberta are viewed, and rightly so, as being progressive.”