Consumer Insights Top Amenities by Generation Top 50 MPCs of 2013 & more!
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ConsumerInsights What Do You Call Home?
NATIONWIDE SAMPLE
Consumer research in the real estate world is often overlooked because it is difficult and expensive to conduct. However, understanding what home buyers value is critical, given the market climate and competitive field today. Our 3rd annual Consumer Insights couples our timely market research with qualitative findings from our proprietary “What Do You Call Home?” survey to provide better information on consumer marketing strategies for your communities.
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Over 22,000 responses are collected across the nation annually. We have access to over 50,000 total responses in our past survey database.
PARTNERS
Builders, developers, and Zillow joined in the effort nationwide by sending an e-mail to their prospective shoppers.
E-MAIL SURVEY
Over 100 questions and several hundred variables regarding shopper’s opinions on their next home and community.
Insight Customized to Increase Your Bottom Line Consumer Insights is a “focus-forward� study so that real estate practitioners can use this information to make strategic decisions moving forward. The information can be customized to meet your needs.
GEOGRAPHIC
We understand that geography affects consumer preferences. Responses can roll up to a national or regional level or drilled down to the MSA or submarket level.
PRICE POINT
We understand that affordability is different for each new home shopper. Respondents were asked their desired price point and payment in their next home; our report can be filtered accordingly.
GENERATIONS & LIFESTAGE
We understand that lifestage impacts purchasing behaviors. Reports are available specifically for 55+ and the millennial buyers.
Fantastic Insight On: HOME To learn more about how you can better develop your next community, marketing strategy, or new product design, please contact:
Kitchen Bathroom Private outdoor living Great space Architectural style Yard preferences Specifications & Technology
MOLLIE CARMICHAEL Principal
COMMUNITY
mcarmichael@realestateconsulting.com (949) 870-1219
Community amenities Lifestyle
INTERIOR STYLE
Interior style preferences Exterior style preferences Interior specifications Texture Color
ATTITUDES
How they live How they shop What they value
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Consumer
Insights
81%
of prospective shoppers say the design is one of the most important factors motivating them to buy a new home.
80%
will consider a smaller backyard if it is designed as a great outdoor space.
Consumer
Insights
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Consumer
Insights
Look out for multi-generational living! 39% plan on an elderly parent and 35% plan on a child over 18 living with them with their next purchase.
67% of all shoppers have pets.
Consumer
Insights
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Consumer
Insights
Top Amenities Check out what more than 20,000 new home shoppers shared as the amenities they most wanted in their next community. Below are the top 25 preferences by generation. The major differences relate to the presence of children for the younger generations.
Boomers
Born 1946 to 1964
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gen X
Born 1965 to 1979
Gen Y
Born 1980 to 2000
*
Grocery Store Close By
Grocery Store Close By
Grocery Store Close By
Restaurants Close By
Restaurants Close By
Restaurants Close By
Walking Trails
Walking Trails
Fitness Center
Fitness Center
Fitness Center
Walking Trails
Village Square
Recreational Center
Children’s Park
Shopping
Village Square
Shopping
Wi-Fi Internet Access in Public Areas
Shopping
Recreational Center
Community High-Speed Internet
Wi-Fi Internet Access in Public Areas
Recreational Center
Community High-Speed Internet
Community-Wide events
Shaded Areas
Shaded Areas
Children’s Park
Community High-Speed Internet
Organized On-Site Programming
Community-Wide events
Shaded Areas
Community Intranet with Events, Clubs, Bulletin Boards, etc
Organized On-Site Programming
Yoga/Pilates Studio
Running
Dog Park
Lake, Pond, Stream, and Water Elements, $50/Month
Community Intranet with Events, Clubs, Bulletin Boards, etc
Running
*
All three generations ranked Fitness Center and Walking Trails as top amenities above retail shopping.
Wi-Fi Internet Access in Public Areas
*
Wi-Fi Internet Access and a Community Intranet with Events, Clubs, etc. are more Village Square important to the Boomers than they are to Community-Wide events Gen X and Gen Y.
*
Community-Wide events rank above pools, parks, and other typical amenities. Events can be much less expensive too!
Children’s Water /Play Area
*
Look for our future trends in what consumers want in communities and homes by generation. We believe it starts with your consumers. 6
Today’s shoppers rated Service & Retail as the most important amenities for their next community purchase.
A Dog Park is among the top park choices. It scored highest for Gen Y, followed by the Boomers.
Consumer research in the real estate world is often overlooked because it is difficult and expensive to conduct. However, understanding what home buyers value is critical, given the market climate and competitive field today. Our 3rd annual Consumer Insights report couples our timely market research with qualitative findings from our proprietary “What Do You Call Home?” survey to provide better information on consumer marketing strategies for your communities.
Gen X
Boomers
16 17
Gen Y
Born 1965 to 1979
Born 1946 to 1964
Born 1980 to 2000
Hiking Trails with Historical Markers of the Area
Tennis Courts
Live Music in the Park
Yoga/Pilates Studio
Sport Fields
Remote Guard Gate, $50/month
Sport Fields
Basketball Courts
Dog Park
Children’s Water/Play Area
Tennis Courts
Cycling
Hiking Trails with Historical Markers of the Area
Yoga/Pilates Studio
Open Space, $50/Month
Lake, Pond, Stream, and Water Elements, $50/Month
Hiking Trails with Historical Markers of the Area
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Amphitheater Outdoors
Dog Park
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Adult-only Pool (18+)
Cycling
Art Shows in the Park
Basketball Courts
Lake, Pond, Stream, and Water Elements, $50/Month
Library
Live Music in the Park
Live Music in the Park
18 19 20 21
24 25
WATER
ADVENTURE
NATURE
ARTS &
ENTERTAINMENT
PARKS
Organized On-Site Programming
*
Events and experiences, as a whole, rank above “hard amenities” like a pool.
Community Intranet with Events, Clubs, Bulletin Boards, etc
Movies in the Park
REC CENTER
EVENTS
SERVICE & RETAIL
SPECIAL AMENITIES
Let us help! We can help optimize your community and home design for better homes, better places, and better profit. Please contact Mollie Carmichael at mcarmichael@realestateconsulting.com or (949) 870-1214. WWW.REALESTATECONSULTING.COM
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Consumer
Insights New Home Shoppers
Generations
Let’s look at who’s shopping out there today for a new home! Who are they? What do they want? This infographic is part of a new series of studies by JBREC on generational differences, based on responses from 22,000 new home shoppers. This Generations infographic details each generation’s life stage and behavior in regards to purchasing a home. Visit www.realestateconsulting.com and let us help your team improve your home or community strategies by better understanding your consumers by specific location.
New Home Shoppers
Boomers
New Home Shoppers
Gen X
Born 1946 to 1964
Gen Y
Born 1965 to 1979
Born 1980 to 2000
LIFE STAGE Family
Single
21%
Family
Single
66%
14%
79%
10%
34%
have 2 or fewer people in household.
have 2 or fewer people in household.
Family
Single
44%
9%
56%
have 2 or fewer people in household. Highest percentage of college graduates at 45%
PAYMENT, PRICE, AND DOWN PAYMENT
47%
of Boomers have a down payment of 30% or greater—thanks to their home equity. This generation is looking for the lowest monthly payment but not necessarily the lowest price. Boomer payments are lower than Gen Y because they are moving down and putting down equity. Their larger down payments help! This consumer will rely heavily on equity—particularly for the consumer that needs to travel further out to purchase or “cash out” for financial security.
47% Gen X
are paying the highest monthly payments...not the Boomers. They also have the highest incomes.
of Gen Y will rely on savings for their down payment. They are the most budget-conscious of all shopping groups. They are almost 2x more likely to get their down payment from their family than Gen X.
18% will pay $2,500+/month
28% will pay $2,500+/month
19% will pay $2,500+/month
69% want a home under $2,500/month
45% want a home under $2,500/month
52% want a home under $2,500/month
33% are looking for a home priced above $400k (varies by geography)
37% are looking for a home priced above $400k (varies by geography)
26% are looking for a home priced above $400k (varies by geography)
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Consumer
Insights
Over 62%
will use either their tablet or mobile phone while shopping for their next home.
Top kitchen features include large islands, walk-in pantries, and high-tech appliances.
Consumer
Insights
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50
Top
Master-Planned Communities of 2013 2013
2012
YOY% ∆
Villages of Lake Sumter, LLC
3,419
2,851
20%
THE IRVINE RANCH1 Orange County, CA
The Irvine Company
1,444
1,434
1%
4
CINCO RANCH Katy, TX (Houston)
Newland Communities
854
982
-13%
5
MOUNTAIN'S EDGE Las Vegas, NV
Focus Property Group
841
948
-11%
10t
NOCATEE Ponte Vedra, FL (Jacksonville)
The PARC Group
838
508
65%
7
RIVERSTONE Houston, TX
Johnson Development Corp.
791
605
31%
6
PROVIDENCE Las Vegas, NV
Focus Property Group
726
760
-4%
3
THE WOODLANDS Houston, TX
The Woodlands Development Company
649
1,007
-36%
8
LAKEWOOD RANCH Sarasota, FL
Schroeder-Manatee Ranch, Inc.
618
573
8%
13
ALAMO RANCH2 San Antonio, TX
Galo Properties
600
500
20%
10t
STAPLETON Denver, CO
Forest City
570
508
12%
14
SUMMERLIN Las Vegas, NV
The Howard Hughes Corporation
566
471
20%
28
CROSS CREEK RANCH Houston, TX
Johnson Development Corp.
509
301
69%
16
LAKE NONA Orlando, FL
Tavistock Group
475
441
8%
2013
2012
1
1
THE VILLAGES The Villages, FL (Central FL)
2
2
3 4 5 6 7 8 9 10 11 12 13 15
N/A
ALIANA Houston, TX
Aliana Development Company
464
304
53%
16
24
WOODFOREST Montgomery, TX (Houston)
Johnson Development Corp.
457
308
48%
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Net Sales
Developer
Project Name & Location
Rankings
18
SIENNA PLANTATION Houston, TX
Johnson Development Corp.
445
387
15%
CANYON LAKES WEST Cypress, TX (Houston)
Land Tejas Companies
378
190
99%
18
N/A
19
15
BRAMBLETON Ashburn, VA (Washington)
Soave Enterprises
373
466
-20%
31
VALENCIA Los Angeles, CA
FivePoint Communities
372
282
32%
32t
FIRETHORNE Houston, TX
JDC/Firethorne
361
280
29%
N/A
RANCHO MISSION VIEJO
360
0
N/A
26
DAYBREAK Salt Lake City, UT
Kennecott Land
353
304
16%
50t
CANE BAY PLANTATION Charleston, SC
Gramling Brothers Real Estate & Dev.
341
214
59%
17
34
EAGLE SPRINGS Humble, TX (Houston)
Newland Communities
321
277
16%
20 21 22 23 24
25
Rank Increased
1
Rank Declined
2
San Juan Capistrano, CA Rancho Mission Viejo, LLC
Irvine includes Cypress Village, Portola Springs, Stonegate, Woodbury & Laguna Altura Estimate
Project Name & Location
Developer
47
CANYON HILLS Lake Elsinore, CA (Riverside)
27
N/A
CRYSTAL FALLS
28t
Rankings
2012
Pardee Homes
308
223
38%
The Lookout Development Group
305
176
73%
29t
VALENCIA RESERVE Palm Beach, FL
GL Homes
299
292
2%
19t
SHADOW CREEK RANCH Houston, TX
Shadow Creek Ranch Development
299
362
-17%
22
MOUNTAIN HOUSE Tracy, CA (Central Valley)
Shea Homes
290
333
-13%
29t
VISTANCIA Phoenix, AZ
Sunbelt/Shea Homes
266
292
-9%
37
THE MEADOWS Castle Rock, CO (Denver)
Castle Rock Development Company
263
250
5%
19t
FISHHAWK RANCH Lithia, FL (Tampa)
Newland Communities
256
362
-29%
34
N/A
STONE RIDGE
Van Metre Homes
254
171
49%
35
48
ESTRELLA Goodyear, AZ (Phoenix)
Newland Communities
252
222
14%
N/A
DURBIN CROSSING2 Jacksonville, FL
Durbin Crossing LLC/Durbin Crossing N. LLC
250
212
18%
40
TERAVISTA Round Rock, TX (Austin)
Newland Communities
249
238
5%
38
N/A
PAVILION PARK AT GREAT PARK Irvine, CA
Five Point Communities
245
0
N/A
39
39
HASTINGS FARMS Queens Creek, AZ (Phoenix)
William Lyon Homes
244
242
1%
40
N/A
ONE LOUDOUN Ashburn, VA (Washington, DC)
Miller & Smith/North American Seksui House, LLC
243
75
224%
41t
35t
ST. CHARLES St. Charles, MD (Washington, DC)
St. Charles Companies
241
271
-11%
41t
41
VERRADO Buckeye, AZ (Phoenix)
DMB
241
233
3%
43t
42
HERITAGE WAKE FOREST Wake Forest, NC (Raleigh)
Ammons Development Group
235
232
1%
43t
N/A
WESTRIDGE Dallas, TX
D.R. Horton
235
197
19%
45
35
ROSEDALE Azusa, CA (Los Angeles)
Brookfield/CDG/Starwood Capital
234
271
-14%
46t
N/A
WESTHEIMER LAKES Katy, TX (Houston)
Land Tejas Companies
230
159
45%
46t
N/A
RIVERSTONE Naples, FL
GL Homes
230
188
22%
48
38
THE BRIDGES Delray Beach, FL (West Palm)
GL Homes
225
245
-8%
N/A
OAKHURST AT KINGSWOOD Houston, TX
Friendswood Development
224
221
1%
HIGHLANDS RANCH2 Denver, CO
Shea Homes
220
507
-57%
30 31 32 33
28t
2013
26
2012
YOY% ∆
2013
Net Sales
37
36
49
50
12
Leander, TX (Austin)
Aldie, VA (Washington, DC)
TOTAL
23,463
20,875
12%
SOURCE: John Burns Real Estate Consulting, LLC, January 2014
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MOLLIE CARMICHAEL Principal Mollie is a Principal in our custom consulting practice. For over 25 years, Mollie has helped companies increase profits dramatically by understanding the market and consumer first. She is passionate about guiding strategic planning decisions with consumer and market based methodologies in order to optimize financial results. Mollie has led research efforts throughout the country on masterplan communities and individual neighborhood design where companies. In addition to managing various consulting assignments, Mollie leads our firm’s Consumer Insights research to help our clients understand what consumers value in their homes and communities. Prior to joining the company, Mollie served as a Vice President of Strategic Marketing for Lennar, Centex Homes, Pulte Homes/Del Webb and Vice President of Residential Product Planning at The Irvine Company, where she led strategic planning, target land acquisition strategies, acquisition and market study due diligence, consumer and product segmentation, quantitative and qualitative consumer research, competitive research, as well as tactical media planning, model and sales office merchandising. Mollie has been quoted in various media publications including the Wall Street Journal, MSNBC, Reuters, Businessweek, and Professional Builder. She has been a speaker on Consumer Insights and innovative planning ideas throughout the country including PCBC, ULI, UBS, and other specific venues. Affiliations ULI – Community Development Council Building Industry Association 55+ Housing Council
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Trusted Analysis for Executive Decisions INSIGHT With over 45 consultants and research analysts working together to provide understanding and clarity through the intricacies of an ever changing real estate cycle, our objective is to make you more successful. Through straightforward and open dialogue, we can determine how to best put our experience and knowledge to work in a way that assists you in reaching your business goals and financial targets. RELATIONSHIPS We have worked with every stakeholder in the industry: builders and developers, private and institutional investors, financial and legal service firms, and building product manufacturers. This dense network of high achieving professionals allows us to see more clearly, create opportunity and generate creative solutions. RESULTS Our team’s understanding of the complexities posed through changing economic and business climates is demonstrated through our consistent ability to deliver timely service with exceptional results.
KEY LEADERSHIP
Our team, led by experienced industry executives, is committed to helping our clients make great investment decisions based on knowing the facts.
John Burns CEO
Don Walker President
Mollie Carmichael Principal
National Market Outlook & Forecasts
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Research & Data
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Builder, Land, & Geographic Insight
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David Kalosis Sr. Vice President
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Midwest Market Leader
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Dean Wehrli Sr. Vice President
Paige Shipp Sr. Manager
No. California Market Leader
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WWW.REALESTATECONSULTING.COM
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Consulting Services
Our Custom Consulting Team helps our clients maximize opportunity in the housing market. Our clients benefit from a team who applies their public and private home building background, local market insight, and analytical processes to market research.
Advisory 1. Market Feasibility 2. Consumer Research 3. Valuation & Cash Flows 4. Community Planning 5. Apartment Analysis 6. Litigation Support 7. Performance Improvement 8. Demand Model by Lifestage 9. Business Plan/Strategy Development 10. Loan Workouts/Restructuring
Market Health
11. Commercial Analysis 12. Urban Residential & Mixed Used Redevelopment
People/ Demographic Shifts
Marketing and Sales
13. International & Resort Services
Financial Testing
Societal/ Geographic Personality
Clients • Builders & Developers • Private Equity • Institutional Investors • Building Products • SF Rentals
Product
• Other
Consumer Personality & Preferences
Competitve Environment Housing Supply 14
Demand by Lifestage and Price
Research
Services
Metro Analysis & Forecast
MAF
This monthly report provides an overview of major housing metrics within a MSA. This is combined with local insight, proprietary surveys, and extensive data analysis to provide a complete picture of the important housing dynamics and shifts within a given markets.
Regional Analysis & Forecast
RAF
A comprehensive monthly report that summarizes important information by ten regions and key metro areas. This includes fiveyear pricing forecasts, supply and demand, and housing affordability and market health.
Monthly Proprietary Builder Survey
This is the timeliest survey on housing conditions released in the industry being delivered to our clients’ inbox by the third business day of the month. This is the best monthly monitor of new home market conditions with feedback from approximately 2,000 communities across 80 metros with a mix of public and private home builders.
Quarterly Proprietary Land Survey and Land Index
Our quarterly land survey and index provides a balanced qualitative and quantitative approach to understanding the land market using a proprietary model built though published data, local expertise, and our own market knowledge.
National Consumer Research
We partnered with builders and developers across the nation to launch our third annual consumer insights survey. The combined three surveys have presented more than 50,000 total responses of prospective homebuyers.
Ongoing Insight
U.S. Housing Analysis & Forecast
USHAF
This monthly report examines over 150 metrics related to housing, and includes an executive summary providing an overview of the important metrics affecting the housing metrics and our view of is impact on the future.
Home Builder Analysis & Forecast
HBAF
This report examines each of the publicly traded home builders based on their geographic footprint, ranked by their forecasted market growth in mid, small and micro-cap. It also includes location comparisons of builders based on the builders’ markets fundamentals and submarket desirability.
Apartment Analysis & Forecast
AAF
A wide-ranging quarterly report including economic outlook for the multifamily market and analysis on the interplay between housing and apartment market dynamics and demographics. Included are five-year apartment rent forecasts, and rankings of top apartment REITs based on their regional diversification and economic factors
•
White papers: We publish thorough research reports covering relevant and important topics.
•
Truth in Housing: A regular email update on significant information that was not reported in the press including findings of non-confidential information we uncover in the field and through our industry contacts.
•
Public Builder Call Summaries: We summarize key performance statistics and market insight from the public builder quarterly earnings conference calls.
•
Industry Expert Webinars: We sponsor webinars with Q&A that inform our clients of timely market and consumer research.
The Summit
Our annual client-only conference, The Summit, where we gather leaders across the housing industry for one and a half days of thought-provoking discussion and networking. For more information about our research, please contact:
Lisa Marquis Jackson Sr. Vice President lmjackson@realestateconsulting.com (214) 389-9003
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