Consumer Insights 2014

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Consumer Insights Top Amenities by Generation Top 50 MPCs of 2013 Regional Ranking Snapshot 2014 Mid-Year Outlook on Housing Demand

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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 third 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.

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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

Our survey includes over 100 questions and several hundred variables regarding shoppers’ 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 drill 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) 870-1214

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

3


Consumer

Insights

81%

of prospective shoppers say that 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

4


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 in their next purchase.

67% of all shoppers have pets.

Consumer

Insights

5


Consumer

Insights

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

6


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)

WWW.REALESTATECONSULTING.COM

7


Consumer

Insights

Top Amenities Check out what 22,000 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. 8

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 third 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

22

Amphitheater Outdoors

Dog Park

23

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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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%

14

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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Bad Data = Bad Information by John Burns, CEO

We are getting a little sick of the bad data that has resulted in some very misleading headlines this month, so I am going to share some proprietary information from our June survey of 228 local building execs overseeing 12% of all US new home sales. We distributed this to our clients on Monday, July 6. Here is the truth: • Eroding confidence. Builder confidence eroded slightly in June and did not spike as reported by the NAHB. We ask the same 3 questions and believe the Housing Market Index should have fallen by 1-2 points instead of risen by 4 points. Very few of our clients are far more confident in the market than they were earlier this year. • Rising starts. SF starts actually rose 4% this month in comparison to the 1% usual seasonal decline and did not decline 9% as reported by the Census Bureau (CB). The South, which the CB reported as the primary reason for the decline, was essentially flat, with the Southeast up 2%, Texas flat, and Florida down 2%. We have four offices in the South, and none of our local team members are seeing declining starts. Also, SF permits have been rising, and builders don’t pay for permits and not start the home unless there is a weather issue. Permits are the most accurate data but do not get as much headline attention because it is a start that generates economic activity.

• Slightly falling sales. The Census Bureau will report sales next week. The CB’s reported margin of error is so high (last month’s 90% confidence level was +/17%) that this data should always be taken as suspect and viewed over a 3-month period, as the CB even states in the press release. June new home sales in our survey fell 6% from May, 3% of which was their normal seasonal decline. Your guess as to what will be reported is as good as mine, but I am going to bet on even more negative headlines, since sales were so grossly overstated in May. The bottom line is this: don’t make decisions based on newspaper articles. Read the actual press release, including the methodology, and make sure the results jive with other data points and qualitative feedback you receive. The housing market continues to improve in 2014—but at a much slower pace than almost everyone expected.

John Burns, CEO (949) 870-1210 jburns@realestateconsulting.com

The next few pages show how we provide our clients with unparalleled networking opportunities, industry experience, service and cutting-edge research. 12


Regional Ranking Snapshot

Northwest

Midwest

Northern Florida

• Home Prices (YOY)(1): 5.8%

• Home Prices (YOY)(1): 3.9%

• Home Prices (YOY)(1): 8.5%

• 2014 Forecast (1)(2): 4.7% • Job Growth (YOY): 1.7% • Resale Sales Volume (YOY): 8.5%

• 2014 Forecast (1)(2): 5.4% • Job Growth (YOY): 1.1% • Resale Sales Volume (YOY): 16.3%

• 2014 Forecast (1)(2): 5.1% • Job Growth (YOY): 2.3% • Resale Sales Volume (YOY): 6.5%

Northern California

Texas

Southern Florida

• Home Prices (YOY)(1): 10.7%

• Home Prices (YOY) : 5.7%

• Home Prices (YOY)(1): 10.5%

• 2014 Forecast (1)(2): 7.3% • Job Growth (YOY): 2.5% • Resale Sales Volume (YOY): -6.7%

• 2014 Forecast (1)(2): 6.3% • Job Growth (YOY): 3.1% • Resale Sales Volume (YOY): 8.0%

• 2014 Forecast (1)(2): 8.6% • Job Growth (YOY): 2.9% • Resale Sales Volume (YOY): 7.3%

Southern California

(1)

Southeast

• Home Prices (YOY)(1): 8.8%

• Home Prices (YOY)(1): 4.6%

• 2014 Forecast (1)(2): 6.8% • Job Growth (YOY): 2.1% • Resale Sales Volume (YOY): -6.1%

• 2014 Forecast (1)(2): 5.3% • Job Growth (YOY): 1.7% • Resale Sales Volume (YOY): 11.2%

Southwest

Northeast

• Home Prices (YOY) : 5.1%

• Home Prices (YOY)(1): 2.5%

• 2014 Forecast (1)(2): 4.7% • Job Growth (YOY): 1.9% • Resale Sales Volume (YOY): -0.9%

• 2014 Forecast (1)(2): 4.6% • Job Growth (YOY): 0.9% • Resale Sales Volume (YOY): 12.1%

(1)

(1) Based on Burns Home Value IndexTM (2) Dec-13–Dec-14

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Housing Cycle Risk Index In our quest to be the first to properly call the bottom of a housing cycle, we developed a tool called the Housing Cycle Risk Index™ (HCRI). Our analysis has shown that the health of the market fundamentals (demand, supply, affordability, and US economic health)—which we measure with the HCRI—has proven to be a very good 1–2 year leading indicator for home price appreciation / depreciation. By monitoring the early signs of recovery or decline in market fundamentals, you will be better able to prepare for the future. Our proprietary index is measured on an A+ through F scale. When the risk index increases from a D to a B, price appreciation is likely to follow, and it is a good time to consider longer-term investments. When the risk index falls from a B to a D, this indicates a higher risk of price declines in the market and suggests lowering your risk profile and/or divesting some assets.

Phoenix

Riverside

Las Vegas

Orlando

Tampa

Washington, DC

Atlanta

Los Angeles

Higher

Houston

Chicago

San Diego

Minneapolis

Denver

Portland

Dallas

Orange County

Austin

Charlotte

Raleigh

San Jose

Fundamentals

Seattle

Market Volatility* Chart Title

Lower

Very Low Risk

Excellent (A)

Low Risk Medium Risk

Average (C)

High Risk Very High Risk

Poor (F)

*Volatility measures the historic fluctuation in new home revenues. The calculation is the difference between the average of the three greatest annual increases in revenue (resale price appreciation * increases in SF construction) since 1990 and the three worst years. We use our Value Index resale price appreciation number rather than new home price appreciation because it is a more accurate reflection of the overall market.

Fully Recovered Economies Top metros in Texas have far surpassed their pre-2009 peak employment: Austin has reached 115% of the peak, Houston 111%, and Dallas 106%. • Chicago and Washington, DC are two markets in which YOY employment gains have notably declined. The Chicago market is currently 97% of its pre-2009 peak employment, while Washington, DC is 103% of peak. • Technology jobs have supported strong job growth in the Northwest, and in Southern Florida the tourism and retirement industries have done so. • Most top markets in Southern California remain below their prior peak levels of employment. • San Jose is still 5% below peak employment, which is surprising, but this is because the 2001 peak (during the Tech Bubble) was so high. 14

Fully Recovered Economies

Current Employment / Pre-2009 Peak Employment 0%

20%

40%

60%

80%

100%

120%

Austin

115%

Houston

111%

Dallas

106%

Raleigh

106%

Denver Charlotte

105% 103%

Washington, DC

103%

Seattle

103%

Portland

102%

San Diego

102%

Minneapolis

102%

Orlando

101%

Atlanta

100%

Los Angeles

99%

Tampa

97%

Riverside

97%

Orange County

97%

Chicago

97%

Phoenix

96%

San Jose

95%

Las Vegas

94%

Source: JBREC, BLS, May 2014 versus prior Mays 2000-2009

140%


2014 Mid-Year Outlook on Housing Demand Great Long-Term Fundamentals • Strong job growth. Nonfarm payroll increased by 288K in June, and Q2 job growth was the best quarter in years. We finally regained all of the jobs lost since 2008, led by growth in higher paying professional business services, and lower paying trade, transportation, and utility jobs. The hospitality, education, health care, and construction industries are also contributing nicely to growth, while government and manufacturing are not. • Better affordability. The 30-year fixed rate mortgage fell to 4.1% in June, down from 4.5% last year, and home equity per owned household is up 23% YOY. • Returning to normal. Mortgage credit availability continues to improve, as does the securitization market for mortgages.

Lousy Short-Term Consumer Confidence • Not spending. All three consumer confidence metrics remain below average. Spending was so bleak in Q1 that GDP declined a whopping 2.9%. • Poor household formations. The household formation rate is a paltry 0.4%, and almost all of the growth is in rental households. • Low entry-level buying activity. Different surveys reveal near-record-low levels of renters leaving apartments to become homeowners, very low levels of mortgage applications, and a paltry 27% of home activity by first-time buyers. • Lack of urgency. 38% of consumers in Fannie Mae’s National Housing Survey believe the rate will stay the same over the next 12 months. Our young adults are going back to school, getting married later, and having kids later. 15


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. 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 spoken on Consumer Insights and innovative planning ideas throughout the country at conferences including PCBC, ULI, UBS, and BIA. 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 highachieving 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

Portfolio & Valuations

Consumer Research & Community

Steve Dutra Sr. Vice President

Lisa Marquis Jackson Sr. Vice President

Lesley Deutch Sr. Vice President

Research & Data

Business Development

Florida Market Leader

Jody Kahn Sr. Vice President

Ken Perlman Sr. Vice President

Pete Reeb Sr. Vice President

Builder, Land, & Geographic Insight

Southwest Market Leader

So. California Market Leader

Lance Ramella Sr. Vice President

David Kalosis Sr. Vice President

Dan Fulton Sr. Vice President

Midwest Market Leader

Southeast Market Leader

Mid-Atlantic Market Leader

Dean Wehrli Sr. Vice President

Paige Shipp Sr. Manager

No. California Market Leader

Texas Market Leader

WWW.REALESTATECONSULTING.COM

(949) 870-1200 17


Consulting Services

Our Custom Consulting Team helps our clients maximize opportunity in the housing market. Our clients benefit from a team that applies its public and private home building background, local market insight, and analytical processes to market research.

Advisory 1. Market Feasibility

Market Health

Financial Testing

Societal/ Geographic Personality

Scope of Advisory

2. Consumer Research 3. Valuation & Cash Flows 4. Community Planning 5. Apartment Analysis

People/ Demographic Shifts

Marketing and Sales

Demand by Lifestage and Price

Product

6. Litigation Support 7. Performance Improvement 8. Demand Model by Lifestage 9. Business Plan/Strategy Development 10. Loan Workouts/Restructuring 11. Commercial Analysis 12. Urban Residential & Mixed Used Redevelopment 13. International & Resort Services

JBREC Client Segments

18

Consumer Personality & Preferences

Competitve Environment Housing Supply


Research

Services

Metro Analysis & Forecast

MAF

This monthly report provides an overview of major housing and economic metrics, as well as our forecasts, at an MSA level. This is combined with local insight, proprietary surveys, and extensive data analysis to provide a complete picture of the important housing dynamics and shifts at the market level.

Regional Analysis & Forecast

RAF

This comprehensive monthly report summarizes important information in ten regions and key metro areas. This includes five-year pricing forecasts, supply and demand, and housing affordability and market health.

Monthly Builder Survey

Every month we survey more than 200 builders across the nation on new home market conditions. Our survey provides timely and accurate insights on housing market conditions just a few days after the end of every month. We believe our survey represents market conditions for production volume builders much more accurately than the Census Bureau.

Quarterly 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 through published data, local expertise, and our own market knowledge.

National Consumer Research

We have partnered with builders and developers across the nation to launch our third annual Consumer Insights survey. These three surveys combined present more than 50,000 total responses from prospective home buyers.

Ongoing Insight

U.S. Housing Analysis & Forecast

USHAF

This monthly report examines more than 150 metrics related to housing, and includes an Executive Summary with an overview of the important metrics affecting the housing market and our view of its 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’ market fundamentals and submarket desirability.

Apartment Analysis & Forecast

AAF

This wide-ranging quarterly report includes an economic outlook for the multifamily market and analysis of 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: We regularly send out email notes to clients called “Truth in Housing” which include relevant nonconfidential insight that we uncover in the field, at industry conferences, or 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, gathers leaders across the housing industry for one and a half days of thoughtprovoking discussion and networking.

HOUSING MARKET OUTLOOK The Housing Market Outlook, our other annual client-only conference, is designed to be the industry’s most informative day of the year. This new conference will highlight insight from 50 speakers from every region and discipline of the housing industry. For more information about our research, please contact:

Lisa Marquis Jackson Sr. Vice President

lmjackson@realestateconsulting.com (214) 389-9003

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Office Locations ATLANTA, GA 12600 Deerfield Parkway | Suite 100 Alpharetta, Georgia 30004 DIR: (770) 286-3493

BOCA RATON, FL 1900 Glades Road | Suite 205 Boca Raton, Florida 33431 DIR: (561) 998-5814

CHARLOTTE, NC 9935-D Rea Road | Suite 273 Charlotte, North Carolina 28277 DIR: (704) 989-1190

CHICAGO, IL 3108 State Route 59 | Suite 124-247 Naperville, Illinois 60564 DIR: (630) 544-7826

DALLAS, TX 5220 Spring Valley Road | Suite 215 Dallas, Texas 75254 DIR: (214) 389-9003

IRVINE, CA 9140 Irvine Center Drive | Suite 200 Irvine, California 92618 DIR: (949) 870-1200

NEW ENGLAND 155 Fleet Street | Suite 11 Portsmouth, New Hampshire 03801 DIR: (603) 235-5760

SACRAMENTO, CA 7840 Madison Avenue | Suite 187 Fair Oaks, California 95628 DIR: (949) 870-1200

SAN DIEGO, CA 4250 Executive Square | Suite 540 La Jolla, California 92037 DIR: (858) 558-8384

WASHINGTON, DC 11710 Plaza America Drive | Suite 2000 Reston, Virginia 20190 DIR: (703) 447-7171 20

WWW.REALESTATECONSULTING.COM


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