Sacrifices, Hurdles, Families, and RoomiesDr. Jessica Lautz

VP, Demographics & Behavioral Insights@JessicaLautz

1. Lack of Affordable Housing Inventory

Low Inventory Driving Prices

6 months

y-o-y ↓ inventory

4-ish months supply

90+ months of

y-o-y price ↑

Existing Home Sales

30%

50%

33%

%

60%

1981 2019

Source: NAR Profile of Home Buyers and Sellers

First-time Buyers Remain at Historical Lows

We Are Short by 5-6 Million Homes

3 bed/2 bath

Single family home

Suburbs & small towns

Close friends & family w/short commute

2019 Home Buyer and Seller Generational Trends Report

2. Buyers are Swiping Left…on Love

First-time Buyers: Skipping the Ring

Profile of Home Buyers and Sellers

75%

53%

27%

10%17%

4%

1981 2019Married Couple Single Female Single MaleUnmarried Couple Other

Median Age of Home Buyers

31

47

29

3336

55

20

40

60

19

81

20

18

All Buyers First-time Buyers Repeat Buyers

Profile of Home Buyers and Sellers

3. Caretaking Now Needs a Lint Brush

Buyers Skipping the Baby

Profile of Home Buyers and Sellers

58%

35%

30%

60%

1985 2019

Children Under Age 18 in Home

Fur Babies Driving Decisions

For Who: unmarried couples & single

females

Where Important: rural & urban areas

What: decide to buy & neighborhood

choice

Source: NAR Profile of Home Buyers and Sellers

4. $tudent Debt is Crushing Finances

How Can Responsible Millennials Save?

Median Student Loan Debt: $41,200 Median Income:

$38,800

Student Loan Debt and Housing Report

Student Debt Delays Home Buying AND Selling

Student Loan Debt and Housing Report

80% Non-owners

83% say student debt

reason

7 yr delay

20% Owners

28% can’t sell &

upgrade

3 yr delay

5. Bank of Mom and Dad

One-Third of First-Time Buyers Used Downpayment Help From Friends & Family

Profile of Home Buyers and Sellers

Profile of Home Buyers and Sellers

First-Time Buyer: Prior Living Arrangement

82%

71%

12%

23%

0%

90%

1989 2019

Rented an apartment or house Lived with parents, relatives or friends

1 in 6 Gen Xers=Multi-Gen Home

Lg SF Home

44% aging rents

34% adult kids

29% cost savings

Source: NAR Profile of Home Buyers and Sellers

6. Bar Has Risen on Buyer Expectations

65% members cited a portion of buyers expect homes to look like TV shows

Profile of Home Staging

71% members cited a portion of buyers are disappointed real homes don’t look like TV shows

Profile of Home Staging

60% members cited a portion of buyers consult family for advice

Profile of Home Staging

Staging: brings buyers, help visual as own, sells faster, more $$$

Profile of Home Staging

7. Tenure is Longerrrrrrrrrr

Actual Tenure in Home is Elevated: Median Years

Profile of Home Buyers and Sellers

6

10

5

10

19

87

20

19

Highest share recorded SELLING and moving to be close to friends & family

8. Budding Issues

Commercial Inventory Changes

Source: Marijuana and Real Estate: A Budding Issue, National Association of REALTORS®

31%

34%

0% 20% 40%

DEMAND HAS INCREASED FOR STOREFRONTS

DEMAND HAS INCREASED FOR LAND

DEMAND HAS INCREASED FOR WAREHOUSES

Only Prescription is Legal Both Recreational & Prescription Are Legal

Source: Marijuana and Real Estate: A Budding Issue, National Association of REALTORS®

Res Leasing: 1/3 seen addendums, 1/5 smell & 1/10 moisture an issue

9. Green Homes

Sustainability: Diverging Message

Limited inventory & affordability

½ of members find buyers interested in sustainable home

2019 REALTORS® and Sustainability Report – Residential

Sustainability 2008 vs 2018 Buyers Ranking of Very Important

% 10% 20% 30% 40% 50%

Landscaping for energy conservation

Environmentally friendly community features

Energy efficient lighting

Energy efficient appliances

Heating and cooling costs

2018 2008

Profile of Home Buyers and Sellers

Common Projects to Remodel for Energy Efficiency

Insulation Upgrade

HVAC Unit

New Front Doors

New Windows

New Roofing

2017 Remodeling Impact

10. Agent Use is TRUSTED

Buyer Use of Agents

Profile of Home Buyers and Sellers

89%

50%

100%

1981 2019

Real estate agent/broker Builder/builder's agentPrevious owner

Agent-Assisted Sales All-Time High

Profile of Home Buyers and Sellers

15%21%

8%

89%

0%

100%

1981 2019

All FSBO (For-sale-by-owner) Agent-assisted Other

Only 5% of U.S. households have heard of iBuyers 8 in 10 would not

consider using

Outside of Real Estate Wonks…

HOME Data: April 2019

11. What about those who just dream of buying?

43.1%

36.2%

20%

100%

1982 2018

U.S. Less than 35 years 35 to 44 years45 to 54 years 55 to 64 years 65 years and over

U.S. Census

U.S. Homeownership Rate, by Age

73

42.1

47.1

40%

80%

1994 2018U.S. Non-Hispanic White

Black American Indian or Alaskan Native

Asian or Native Hawaiian/Pacific Islander Hispanic or Latino

U.S. Census

U.S. Homeownership Rates by Race

1/2 Non-Owners Believe Economy is Improving and…

57% Difficult to Become Owner Given

Personal Finances 34% Next 6 Months: Econ Conditions in Country: Worse

25% Believe U.S. Economy in a Recession

31% More Financial Stress Currently

Source: NAR Profile of Home Buyers and Sellers

¾ Believe Owning is

Their American

Dream

81% want to own

78% owning:

good financial decision

40% can’t afford to

buy

60% lifestyle/ financial change: will buy

Source: NAR Profile of Home Buyers and Sellers

Reasons Behind Ownership Beliefs of Non-Owners

• 73% easier to save money

• 20% less risky than rentingAmong Good Financial Decision

• 44% renting less risky than owning

• 27% watch family/friends have a bad ownership experience

Not A Good Financial Decision

Source: NAR Profile of Home Buyers and Sellers

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