Home Trends & Millennials’ Home...
Transcript of Home Trends & Millennials’ Home...
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Home Trends & Millennials’ Home
Preferences
JANUARY 21, 2015 || 8:00 – 9:00 AM
Presenter:
Rose Quint || NAHB Economics, Washington, DC
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1. Characteristics of New Homes Built in 2014
2. Characteristics of New Homes Coming in 2015
3. What Millennial Home Buyers Want
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Characteristics of New Homes Built in 2014
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1,500
1,700
1,900
2,100
2,300
2,500
2,700
2,900
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
2,642
2,362
2,499
2,662
Source: U.S. Census Bureau.
Note: Data for 2014 is based on the first two quarters.
Average Size of New Single-Family Homes Started(Square Feet)
After rising for
4 consecutive
years, home
size began to
recede in 2014.
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Homes with 4+ Bedrooms(% of single-family homes started)
0
5
10
15
20
25
30
35
40
45
50
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
47%
34%
39%40%
42%46% Share of new
homes with 4+
bedrooms:
About even from
2013 to 2014
46% to 47%
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Homes with 3+ Full Bathrooms(% of single-family homes started)
0
5
10
15
20
25
30
35
40
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
36%
27%
23%
28%30%
35% Share of new
homes with 3+
full bathrooms:
About even from
2013 to 2014
35% to 36%
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Homes with 3+ Car Garage(% of single-family homes started)
0
5
10
15
20
25
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
20%
16%
23%
18%
20%
22% Share of new
homes with 3+
car garage:
About even from
2013 to 2014
22% to 23%
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Homes with 2+Stories(% of single-family homes started)
0
10
20
30
40
50
60
70
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
58%57%
51%
57%54%
Share of new
homes with
2+stories:
Even from
2013 to 2014
at 58%
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What Will Happen to Home Size in 2015?
Average will likely continue to recede
WHY?• 3M jobs created in 2014 – most since 1999
• New rules to loosen credit tightness
• Moderate home price growth in 2014
Will allow more people (young, 1st-time buyers) to
enter market.
They will demand smaller, more affordable homes.
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Characteristics of New Homes
Coming in 2015
(Based on a survey of builders nationwide in December ‘14)
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10 MOST LIKELY Features in Typical Single-family Home in 2015(1=Not at all likely, 5=very likely; avg. rating)
4.3
4.4
4.4
4.4
4.4
4.5
4.7
4.8
4.8
4.9
Granite countertop in kitchen
2-car garage
Programmable thermostat
Energy-Star rated windows
9' feet+ in 1st floor ceiling
Energy-Star rated appliances
Great room (Kitchen-Family room-Living
room)
Low-e windows
Laundry room
Walk-in closet in master bedroom
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10 LEAST LIKELY Features in Typical Single-family Home in 2015(1=Not at all likely, 5=very likely; avg. rating)
2.9
2.7
2.6
2.5
2.3
2.3
2.1
2.1
2.0
1.9
Flooring on main level: Carpeting
Whirlpool in master bathroom
Walking/Jogging trails in community
Two-story foyer
Media room
Two-story family room
Sunroom
Outdoor fireplace
Laminate countertop in kitchen
Outdoor kitchen (cooking, refrigeration, &
sink)
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What Millennial/Gen Y Home
Buyers Want
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Type of Home Wanted
Single-family: 75% Townhouse: 11%
Multifamily Apartment: 4% Manufactured Home: 3%
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Type of Area Preferred
15
Suburbs: 66%
Central City: 10%
Rural: 24%
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1,728
2,475
Currently Have Would Like to Have
Home Size(Median Square Feet)
Millennials
want 43%
more space
than they
have now.
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19%
27%
28%
31%
35%
43%
53%
Less expensive materials
Smaller house
Fewer amenities
Smaller lot
Longer commute to work
Farther away from shopping,entertainment
Unfinished spaces
Willing to Accept to Make Home Affordable(% of Gen Y Respondents)
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5%
8%
10%
78%
Oversized kitchenand no family
room
Side-by-side, withfull wall
Completelyseparate areas of
house
Open, completelyor with half wall
Most Want Kitchen Open
to the Family Room, and..
(% of Gen Y Respondents)
12%
35%
52%
Split-level
Single-story
Two-story
A Two-Story Home
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0%
7%
35%
46%
11%
One Two Three Four Five ormore
81%
Most Millennials Want 3 or 4 Bedrooms
(% of Gen Y Respondents)
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11%
30%
34%
16%
10%
Up to 1½ 2 2½ 3 3½ or more
64%
2 ½ Baths Are Enough for Most Gen Y Buyers(% of Gen Y Respondents)
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The Most Wanted List(% of Gen Y Respondents)
55%
38%
28%
21%
34%
43%
41%
29%
27%
42%
28%
35%
50%
60%
65%
51%
41%
43%
55%
57%
41%
55%
Laundry room
Exterior lighting
Energy-Star rated appliances
Energy-Star rating for whole home
Linen closet
Living room
Ceiling fan
Walk-in pantry
Garage storage
Exhaust fan
Front porch
Essential/Must Have Desirable
90%
88%
88%
86%
85%
84%
84%
84%
84%
83%
83%
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Most “Unwanted” List(% of Gen Y Respondents Rating “Do Not Want”)
30%
31%
32%
44%
47%
47%
57%
64%
Laminate countertop
Wet bar
Wine cooler
Gated community
Only a shower stall in master bath
High density community
Home in golf course community
Elevator
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Most Millennials Will Pay 2%-3% more for Energy Efficient Home
(% of Gen Y Respondents)
16%
84%
A home without energyefficiency features that costs 2-
3% less
A highly energy efficient homew/ lower utility bills over
home's life
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Most Would Be Seriously Influenced to Move to a Community if It Had…
(% of Gen Y Respondents)
51%
54%
55%
58%
Outdoor swimming pool
Playgrounds
Walking/jogging trails
Park area
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Rose Quint
ASVP Research
NAHB Economics
202.266.8527
1201 15th Street NW
Washington, DC 20005
Speaker Contacts:
Head Shot