The Great Debate: millennials or Boomers?

The Great Debate: Millennials or Boomers?

JANUARY 19, 2016 || 3 – 4:30 PM

Presenter(s): Rachel Flint || Hubbell Homes, West Des Moines, IA

Mitch Levinson || mRelevance LLC, Arlington Heights, IL

Aldea Douglas || AARP, Washington, DC

Doug Van Lerberghe || KEPHART, Denver, CO

Moderator:Stephen Moore || BSB Design, West Des Moines, IA

Session Description

Will it be the Millennials or the Boomers who shape our cities and suburbs in the decades to come?

What will these places and spaces look like? Will the Millennials follow the same paths their parents did and move to the suburbs? Will empty nesters sell their single family homes and move to more urban, walkable locations? These questions have been the topic of many debates in cities around the country. In this session, watch the debate take shape and see if these great debaters can change your opinions about these two markets and their influence.

Learning Outcomes

Learn the positives and negatives of attracting each demographic group to your community.

Find out which demographic group to target based on your community characteristics.

Understand the generational differences that will inform price points, location and design.

Recognize that their interests in a community and home are similar and learn how to accommodate both generations in terms of design and amenities.

American Institute of Architects (AIA) Continuing Professional Education

Credit(s) earned on completion of this course will be reported to AIA CES for AIA members upon completion of the AIA/CES Session Participation Forms found in the back of this session room and online at www.BuildersShow.com. Certificates of Completion for both AIA members and non-AIA members are available upon request.

This course is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product.

Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation.

Survey Question 1

Who will shape our cities and suburbs in the decades to come?

a.Baby Boomersb.Millennialsc.Neither

Today’s Debate Team MembersTeam MillennialMitch LevinsonmRELEVANCE LLC

Rachel FlintHubbell Homes

Team BoomerAldea DouglasAARP

Doug Van LerbergheKEPHART

Debate “rules”

5 minute opening arguments – Aldea and Mitch

15 minute Rebuttal Q&A period - Aldea and Mitch

5 minute opening arguments – Doug and Rachel

15 minute Rebuttal Q&A period – Doug and Rachel

20 minutes of audience questions

3 minute closing argument

Audience vote on winner of the debate!

AldeaDouglas

Opening Argument: Boomers

Image

The boomers and millennials represent a combined total of

150 million people, the majority of whom

have expressed a preference for Livable

Communities.

By 2030 the U.S. will have twice as many people over the age of 65 as we have today

Every day, 10,000 boomers turn 65

76 million boomers in 2015!

Image Image

The BOOMERwill shape our cities

and suburbs in decades to

come….more then the millennial.

Trade shorter commute for a smaller home

Proximity to a mix of shops,

restaurants and offices

Source: Urban Land Institute, America in 2013, 2013.

Mix of homes Mix of Income

Public Transportation

Option

Image Image

The BOOMERis responsible for at least $7.1 trillion in annual economic

activity!

The LONGEVITY ECONOMY represents the sum of all economic activity serving the needs of Americans over 50.

Multigenerational Households

Multigenerational Households as a Percentage of All Households in the United States, 2000-2012

Source: Pew Research Center analysis of U.S. Decennial Census data, 1940-2000, and 2006-12 revised weight American Community Surveys (IPUMS)

Percentage of All H

ouseholds in the United States

The Boomeris still paying for the

Millennial!

Leave the house already!

13

Survey after survey finds that today’s older adults want to remain in their homes

Source: AARP Home and Community Preferences of the 45+ Population, 2014

But most houses haven’t been designed to adapt. American homes have traditionally been designed and built for able-bodied 35 year olds

78%of adults ages 45+ agree or strongly

agree with the statement: “What I’d

really like to do is stay in my current residence for as

long as possible.”

14

Survey after survey finds that today’s older

adults want to stay in their

community

Source: AARP Home and Community Preferences of the 45+ Population, 2014

For the past 50 years, communities have developed around cars and other motor vehicles as our principal form of transportation

80%of adults ages 45+ agree or strongly

agree with the statement: “What I’d

really like to do is stay in my current community for as long as possible.”

Image

Image

Mitch LevinsonMBA, MIRM, CSP, CAPS, CGP

Opening Argument: Millennials

WHO is REALLY driving?

Myths & MisconceptionsLazy?Broke?No

Savings?Anti-

The American Dream?Lackin

g Focus?Oblivio

us?Selfish

?

FALSE!

75% said that it’s either

fairly or very important

that a company gives

back to society instead

of just making a profit.

62% say that if a brand engages with them on social networks, they are more likely to become a loyal customer.

50% of Millennials

follow brands on

social for the sole

purpose of getting

discounts or

special deals.

80% donate

time to

philanthropic

causes and

community

giving.

60% said that they

are often or always

loyal to brands that

they currently

purchase.

87% use between

two and

three tech devices

at least once on a

daily basis.

Millennials Appreciate Community

What makes a community? Is there a community garden, dog park, park, gathering place or trail system?

Millennials Drive How Businesses Communicate

Millennials:

Want it fast, and now.

Want to self-discover and value transparency.

Have grown up online & do their own research.

Do not like to be “advertised at.”

Are excellent communicators.

89% of millennials said having access to real-time product availability information would influence their shopping decisions.- Accenture, 2015

REBUTTAL Q&A SESSION 1

Aldea Douglas

Mitch Levinson

Survey Question 2

Which generation is going to buy more new houses in the next 5 years?


Opening Argument: Boomers

DougVan Lerberghe

BOOMERS are still a force to be reckoned with

Have more wealth and spending power than Millennials- 25% of population- represent 75% of wealth and 50% of spending power

Value real estate- 80% own their own home- 25% own additional real estate beyond their primary residence

Will buy more than half of the new homes sold in the next 5 years according to Metro Study Research.

Homebuyers are getting OLDER

MILLENNIALS have a shifting set of attitudes

First-time homebuyers fell to 32% of all purchasers in 2015, the lowest level in almost 3 decades. Historical average is 40%.

Getting married later.

Want to maintain geographic flexibility.

Can’t afford down payments and have staggering student loan debt.

Living at home and with roommates in record numbers.

They are comfortable sharing, willing to live in small spaces, and desire close-to-the-action locations.

BOOMERS are much wealthier

Have better credit

More savings

Are willing to pay for upgrades and lot premiums

Millennials are much more cost focused!

BOOMER housing OPPORTUNITIES

Remodeling homes – comfort, style and age-friendly

Modern appliances, energy-efficient windows and doors

Private outdoor spaces – entertainment, lock n’ leave

Single level, open plans, low-maintenance

Nice kitchens and master suites

Ability to customize

Continuing to work – home office, shared office space and reception

Opening Argument: MillennialsRachel FlintMC, CSP, CMP

Millennials Drive Housing Trends:

Flexibility 71% of surveyed Millennials say it’s important for their home to have the ability to be personalized – BUILDER, 2015


Design

The “Apple” effect Clean Lines Outdoor Spaces


Technology Ease of Use Charging Stations Tech Outpacing Buyer Demand


Urban vs. Suburban

83% of Millennials surveyed said more space is the biggest motivator to purchase a home. - BUILDER, 2015


Sustainability Millennials have the most knowledge of sustainability than other generations, with 80% of those surveyed indicating that they have at least a fair amount of knowledge.- Cox Conserves Sustainability Survey, 2015


Price

Upgrades Efficiencies

REBUTTAL Q&A SESSION 2

Doug Van Lerberghe

Rachel Flint

Survey Question 3

With the current community design preferences towards walkability, urban neighborhoods and lifestyle, which generation is diving that most?


AudienceQ and A

Closing Argument: Millennials

Closing Argument:Millennials: Number 82 million strong Will spend $1.4 trillion annually by 2020 and $10 trillion over

their lifetimes as consumers, in the U.S. Will exceed the Baby Boomer’s income by 2018 Will buy a home when they feel like it70% expect to buy a home by 2020 Drive how businesses communicate with customers Drive product, design, pricing, location and features

Closing Argument: Boomers

Final Survey Question

Who will shape our cities and suburbs in the decades to come?


Aldea [email protected] AARP.org/Livable@AldeaDC@AARPLivable

Speaker Contacts:

Doug Van [email protected]

Rachel FlintHubbell [email protected]@rachelf05

Mitch LevinsonmRELEVANCE, [email protected] MarketingRELEVANCE.com @mrelevance@mitchlevinson3

Team Millennial

Team Boomer

The Great Debate: millennials or Boomers?

Real Estate

Transcript of The Great Debate: millennials or Boomers?