Home Trends & Millennials’ Home...
Transcript of Home Trends & Millennials’ Home...
Home Trends & Millennials’ Home
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JANUARY 21, 2015 || 8:00 – 9:00 AM
Presenter:
Rose Quint || NAHB Economics, Washington, DC
1. Characteristics of New Homes Built in 2014
2. Characteristics of New Homes Coming in 2015
3. What Millennial Home Buyers Want
Characteristics of New Homes Built in 2014
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.
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%
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%
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%
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%
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.
Characteristics of New Homes
Coming in 2015
(Based on a survey of builders nationwide in December ‘14)
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
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)
What Millennial/Gen Y Home
Buyers Want
Type of Home Wanted
Single-family: 75% Townhouse: 11%
Multifamily Apartment: 4% Manufactured Home: 3%
Type of Area Preferred
15
Suburbs: 66%
Central City: 10%
Rural: 24%
1,728
2,475
Currently Have Would Like to Have
Home Size(Median Square Feet)
Millennials
want 43%
more space
than they
have now.
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)
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
0%
7%
35%
46%
11%
One Two Three Four Five ormore
81%
Most Millennials Want 3 or 4 Bedrooms
(% of Gen Y Respondents)
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)
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%
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
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
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
Rose Quint
ASVP Research
NAHB Economics
202.266.8527
1201 15th Street NW
Washington, DC 20005
Speaker Contacts:
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