New Homebuyer Playbook:

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Cecil Goodwin
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1 New Homebuyer Playbook: The Who, What and How of Consumers Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

Consumer Insights, Zillow Group Metrostudy Consumer

2 An Introduction to Today s Speaker Lineup Paige Shipp Regional Director, Metrostudy Mary Kaye O Brien Director of Consumer Insights, Zillow Group Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

3 Consumer Insights: The New Construction Buyer Mary Kaye O Brien Director, Customer Insights

4 Total surveyed: 13,125

5 We ll discuss WHO HOW WHAT Who is buying new construction? How are they shopping for homes? What features are important in a new construction home?

6 Who is the new construction buyer?

2017 Zillow Group Report on Consumer Housing Trends

7 52% of home buyers considered new construction 1 11% of home buyers chose new construction 2 Sources: 1) 2017 Zillow Group Report on Consumer Housing Trends (New Construction), 2) US Census Bureau, Survey of Construction

9 Who considers new construction? 43% are first-time home buyers 57% are repeat home buyers Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

10 Who buys new construction? 33% are first-time home buyers 67% are repeat home buyers Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

11 Buyer considerations: Lots 26% of all existing home buyers considered a lot/land 34% of new construction buyers considered a lot/land Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

12 Purchased home was part of a larger community 70% Yes 30% No Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

13 Today s new construction buyer Silent Generation (73+), 6% Boomers (53-76), 28% Gen X (38-52), 30% Millennials (18-37), 36% Median age 42 White 71% Asian 11% Black 10% Hispanic 7% Other 1% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

Education 40% 35% 36% 30% 25% 20% 23% 19% 15% 10% 5% 11% 12% College Grad or More New Construction Buyer: 55% Existing Buyer: 43% 0% High school graduate or less NC Buyers Some college, no

14 Education 40% 35% 36% 30% 25% 20% 23% 19% 15% 10% 5% 11% 12% College Grad or More New Construction Buyer: 55% Existing Buyer: 43% 0% High school graduate or less NC Buyers Some college, no degree 2-year college or technical school degree 4-year college degree (BA or BS) Graduate school/professional school Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

15 Household and buyer characteristics 75% Live with spouse/partner 44% have children at home 74% Employed 33% Have pets Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

16 Regional concentrations Midwest 18% West 23% Northeast 14% Southwest 11% Southeast 34% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

17 Geography Urban 28% Suburban 53% Rural 19% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

Distance moved 17% 36% 32% 13% 2% > > > >

out of the country 47% Source: 2017 Zillow

18 Distance moved 17% 36% 32% 13% 2% > > > > Same neighborhood Same city, different neighborhood Same state, different city Same country, different state Moved from out of the country 47% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

19 How are they shopping for homes?

20 Search time New Construction buyers take an average of 4.8 months searching for their home compared to 4.2 months for buyers of existing homes. New Construction Existing 40% 44% 29% 28% 20% 20% 11% 7% LESS THAN 3 MONTHS 3-6 MONTHS 7-12 MONTHS 1+ YEAR Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

21 Online is the top resource 76% 80% 76% 65% 60% 26% 56% 49% 47% 40% 30% 32% 19% 21% Online Resource Real Estate Agent/Broker Home Builder/Sales Center For Sale or Open House Sign Friends/Relative/Neighbor Print Ad Direct Mail New Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

22 Platforms and devices used for online search Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

23 Platforms and devices used for online search Website on Desktop/Laptop Mobile web On smartphone App on smartphone How Accessed Online 73% 47% 70% How Accessed Builder site 87% 52% 31% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

24 Average of four online resources used in search 86% of those who considered new construction used online resources to help them search for a home Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

25 Shopping online helps buyers become more informed Can I see myself living there? Can I afford to buy? Are there enough homes I would be interested in to start seriously looking? Do I really want a house like that? Am I really ready to buy?

26 and provides consumers with greater access to builders BUYER BUILDER

27 New Construction buyers who contacted a sales center 60% Yes 40% No Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

28 Buyers preferences when contacting a builder sales center top 39% 29% 25% Meet in person Phone calls s Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

29 What features are important in a new construction home?

30 New construction buyer search activities average times a buyer took a private home tour average times a buyer attended an open house average times had an inspection conducted on a home Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

31 How buyers decide on the right home 79% 74% 74% 71% 73% 57% 52% 41% 49% 48% 37% 37% 35% 34% 27% 28% Take a private home tour View floorplan Access to buyer inspection Attend an open house Professional photos of home Virtual tour of home Staging the home Watch a video tour of home Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

32 Home requirements Had preferred number of bedrooms Had air conditioning Was within my initial price range Had preferred number of bathrooms Had a floorplan / layout that fit my preferences Had my preferred size / square footage Had my preferred style of kitchen Had private outdoor space (e.g., patio, deck, yard) Had my preferred finishes (e.g., flooring, counters) Had ample storage Was energy efficient Had good potential to increase in value Had preferred utilities (e.g., gas, electric) Could provide opportunity for rental income 16% 19% 31% 29% 29% 39% 39% 39% 43% 46% 46% 51% 51% 50% 48% 47% 61% 60% 65% 65% 57% 57% 56% 54% 71% 71% 66% 67% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

33 Neighborhood requirements In a safe neighborhood 74% 70% In my preferred neighborhood 37% 48% Offered off-street parking/garage Close to shopping / services / leisure activities In my preferred school district Close to work Close to family / friends Offered shared community amenities Close to public transportation 16% 21% 18% 18% 28% 29% 27% 26% 26% 34% 33% 32% 39% 44% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

34 Reasons buyers chose new construction Location Appealing features Everything is new Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

35 Reasons buyers chose new construction In a desirable location Appealing home features (floor plan, sf) Everything in the home is new / never used The home was the best value for my money Ability to customize features of my home No one else had lived in it before Ability to select my floorplan Reputation of the homebuilder Free upgrades offered by builder Cash discount offered by builder Curb-appeal of home exterior Access to shared community amenities (pool) 17% 15% 14% 12% 9% 43% 39% 35% 32% 30% 30% 25% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

New Construction buyers encounter less pain points Finding a home within my desired price range 35% 42% Finding a home in my desired location 34% 39% Finding a home with my desired amenities 32% 39%

36 New Construction buyers encounter less pain points Finding a home within my desired price range 35% 42% Finding a home in my desired location 34% 39% Finding a home with my desired amenities 32% 39% New Construction buyers are more satisfied overall than existing home buyers (76% vs. 71%) Determining how much home I could afford Finding a home within my desired time frame 32% 34% 32% 34% Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

37 Key takeaways List where they re looking Location, location, location Never underestimate the appeal of new The tip of the data iceberg Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)

38 Want more data? 2017 Zillow Group Report on Consumer Housing Trends Report New Construction Resource Center zillow.com/resources/new-construction/ Contact us:

39 Thank you!

40 New Homebuyer Playbook: The Who, What and How of Consumers Presented By Paige Shipp Regional Director for Dallas Ft. Worth, TX & Consumer Segmentation Expert for Metrostudy Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

41 The Homebuyer Playbook Which Consumer Groups Buy New Homes? Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

42 The Homebuyer Playbook What is Important to New Homebuyers? Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

43 The Homebuyer Playbook Existing Household Distribution by Consumer Group Consumer Group Households Share Entry Level Suburban 9,669, % Entry Level Urban 6,393, % Simple Life Affluent w/o Children 8,556, % Simple Life Moderate Income with Children 5,112, % Simple Life Moderate Income w/o Children 6,621, % Feature & Location 8,785, % Family Life School Age Children 5,560, % Family Life Young Children 5,852, % Elite 10,671, % Active Adult Entry Level 7,462, % Active Adult Feature & Location 12,338, % Active Adult Elite 7,279, % Renters Near Term Buyers 11,774, % Renters 16,742, % 9.6% 13.6% 5.9% 10.0% 6.1% 8.7% 7.9% 5.2% 7.0% 4.2% 5.4% 7.2% 4.5% 4.8% Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

44 The Homebuyer Playbook New Home Sale Distribution For 12 Months by Consumer Group Consumer Group Closings Share Entry Level Suburban 47, % Entry Level Urban 17, % Simple Life Affluent w/o Children 37, % Simple Life Moderate Income with Children 24, % Simple Life Moderate Income w/o Children 14, % Feature & Location 29, % Family Life School Age Children 33, % Family Life Young Children 81, % Elite 43, % Active Adult Entry Level 11, % Active Adult Feature & Location 21, % Active Adult Elite 14, % Renters Near Term Buyers 18, % Renters 22, % 2.8% 4.4% 3.5% 5.1% 10.4% 19.5% 5.3% 11.3% 8.1% 4.2% 9.0% 5.8% 7.0% 3.6% Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

45 The Homebuyer Playbook Household Distribution vs. New Home Sale Distribution by Consumer Group Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

46 The Homebuyer Playbook New Home Sale vs. Resale Distribution by Consumer Group Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

47 The Homebuyer Playbook New Home Sale vs. Resale Share by Consumer Group Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

48 The Homebuyer Playbook New Home Share of Total Sales by Consumer Group Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

49 The Homebuyer Playbook New Home Sale vs. Resale Share by Consumer Group Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

50 The Homebuyer Playbook Elite Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

51 The Homebuyer Playbook Family Life Young Children Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

52 The Homebuyer Playbook Feature & Location Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

53 The Homebuyer Playbook Simple Life Affluent, No Children Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

54 The Homebuyer Playbook Active Adult Feature & Location Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

55 The Homebuyer Playbook Who is Your Buyer? OnTarget: Consumer Intelligence Zero in to Find Your Best Customers and Markets Identify Your Buyers Troubled Projects New Communities Submarket Analysis New Market Analysis Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

56 Regional Director Territories Territory Experts Todd Britsch WA, OR Greg Gross CA (Central & N. CA); NV John Mulville CA (S. CA) Eric Allen ID, MT, UT, WY Ryan Brault AZ John Covert CO, NM, NE, KS Mark Gianopulos IA, IL, IN, MI, MN, MO, ND, OH, SD, WI Vaike O Grady TX (Austin) Paige Shipp TX (Dallas); OK, AR Lawrence Dean TX (Houston) Jack Inselmann TX (San Antonio, Rio Grande) Quita Syhapanya ME, NH, VT, MA, DE NY, CT, RI, PA, NJ Ben Sage DC, MD, VA, WV Michael Leidel TN Jenifer Gooch NC (Charlotte) Amanda Hoyle NC (Raleigh), SC Eugene James AL, GA, KY, MS Tony Polito FL (Tampa, Sarasota) Anthony Crocco FL (Jacksonville, Orlando, Central FL) David Cobb FL (South Ft. Myers, Naples, Miami, Treasure Coast) Regional Director Territories 2017 Metrostudy 56

57 Q & A For any questions or suggestions contact Heather Knutson Director of Demand Generation at hknutson@metrostudy.com Visit us at to sign up for future events. The start of the 2018 webcast lineup to be announced soon Come see us! Visit us at booth #W5761 at the International Builders Show in Orlando, FL or reach out if you would like a VIP invitation to our breakfast panel held on 1/10/18. Metrostudy Consumer Insights: Homebuyer Playbook Webcast December Metrostudy December 13,

Older consumers and student loan debt by state

August 2017 Older consumers and student loan debt by state New data on the burden of student loan debt on older consumers In January, the Bureau published a snapshot of older consumers and student loan