Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 1
New Homebuyer Playbook: The Who, What and How of Consumers
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 2
An Introduction to Today’s Speaker Lineup
Mary Kaye O’BrienDirector of
Consumer Insights,
Zillow Group
Paige ShippRegional Director,
Metrostudy
Consumer Insights: The New Construction Buyer
Mary Kaye O’BrienDirector, Customer Insights
Total surveyed: 13,125
How are they shopping
for homes?
Who is buying new
construction?
WHO HOW
We’ll discuss…
What features are
important in a new
construction home?
WHAT
Who is the new construction buyer?
52%of home buyers considered
new construction1
Sources: 1) 2017 Zillow Group Report on Consumer Housing Trends (New Construction), 2) US Census Bureau, Survey of Construction
11%of home buyers chose
new construction2
57%are repeat home buyers
43%are first-time home buyers
Who considers new construction?
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
33%are first-time home buyers
67%are repeat home buyers
Who buys new construction?
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
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)
Purchased home was part of a larger community
70%Yes
30%No
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
White
71%Black
10%
Asian
11%
Hispanic
7%Other
1%
Millennials (18-37), 36%
Gen X (38-52), 30%
Boomers (53-76), 28%
Silent Generation (73+), 6%
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Median age
42
Today’s new construction buyer
23%
11% 12%
36%
19%
0%
5%
10%
15%
20%
25%
30%
35%
40%
High schoolgraduate or less
Some college, nodegree
2-year college ortechnical school
degree
4-year collegedegree (BA or BS)
Graduateschool/Professional
school
NC Buyers
College Grad or More
New Construction Buyer: 55%
Existing Buyer: 43%
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Education
Household and buyer characteristics
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
75%Live with
spouse/partner
74%Employed
33%Have pets
44%have children
at home
Southeast
34%
Midwest
18%
West
23% Northeast
14%
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Southwest
11%
Regional concentrations
Rural
19%
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Urban
28%
Suburban
53%
Geography
Same
neighborhood
17% 36%
Same city, different
neighborhood
Same state,
different city
32%
Same country,
different state
13%
Moved from out
of the country
2%
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Distance moved
> > > >
47%
How are they shopping for homes?
New Construction buyers take an average of 4.8 months searching for their home compared to 4.2 months for buyers of existing homes.
40%
29%
20%
11%
44%
28%20%
7%
LESS THAN 3 MONTHS
3-6 MONTHS 7-12 MONTHS 1+ YEAR
New Construction Existing
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Search time
Online is the top resource
76%65%
60%49%
40%30%
19%
80% 76%
26%
56%47%
32%21%
Online Resource Real Estate Agent/Broker Home Builder/Sales Center For Sale or Open HouseSign
Friends/Relative/Neighbor Print Ad Direct Mail
New…
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Platforms and devices used for online search
87%
73%
52%
47%
31%
70%
HowAccessed
Builder site
HowAccessed
Online
Website on
Desktop/LaptopMobile web
On smartphone
App on
smartphone
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Platforms and devices used for online search
Average of four online resources used in search
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
86% of those who considered new construction used
online resources to help them search for a
home
Shopping online helps buyers become more informed…
Can I afford to buy?
Are there enough homes I would be
interested in to start seriously
looking?
Can I see myself living there?
Do I really want a house like that?
Am I really ready to buy?
…and provides consumers with greater access to builders
BUYER
BUILDER
60%Yes
40%No
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
New Construction buyers who contacted a sales center
Buyers’ preferences when contacting a builder sales center – top 3
39%
29%25%
Meet in person Phone calls Emails
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
@
What features are importantin a new construction home?
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
4 2 1
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
How buyers decide on the right home
74% 74%71%
52%49%
37% 35% 34%
79%
57%
73%
41%
48%
37%
27% 28%
Take a privatehome tour
View floorplan Access to buyerinspection
Attend an openhouse
Professionalphotos of home
Virtual tour ofhome
Staging thehome
Watch a videotour of home
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Home requirements 71%
71%
66%
65%
65%
57%
57%
56%
54%
51%
50%
48%
47%19%
61%
60%
67%
51%
43%
46%
31%
46%
29%
39%
29%
39%
39%
16%
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
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Neighborhood requirements
74%
48%
44%
34%
33%
32%
26%
21%
18%
70%
37%
39%
28%
29%
27%
26%
16%
18%
In a safe neighborhood
In my preferred neighborhood
Offered off-street parking/garage
Close to shopping / services / leisureactivities
In my preferred school district
Close to work
Close to family / friends
Offered shared community amenities
Close to public transportation
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Reasons buyers chose new construction
Everything
is newLocation
Appealing
features
43%
39%
35%
32%
30%
30%
25%
17%
15%
14%
12%
9%
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)
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Reasons buyers chose new construction
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
New Construction
buyers are more
satisfied overall than
existing home buyers
(76% vs. 71%)
New Construction buyers encounter less pain points35%
34%
32%
32%
32%
42%
39%
39%
34%
34%
Finding a home within my desired price range
Finding a home in my desired location
Finding a home with my desired amenities
Determining how much home I could afford
Finding a home within my desired time frame
Key takeaways
Source: 2017 Zillow Group Report on Consumer Housing Trends (New Construction)
Never underestimate
the appeal of “new”
List where
they’re looking
Location, location,
locationThe tip of the
data iceberg
2017 Zillow Group Report on Consumer
Housing Trends Report
New Construction Resource Centerzillow.com/resources/new-construction/
Contact us: [email protected]
Want more data?
Thank you!
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 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, 2017 | 41
The Homebuyer Playbook
Which Consumer Groups Buy New Homes?
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 42
The Homebuyer Playbook
What is Important to New Homebuyers?
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 43
The Homebuyer Playbook
Existing Household Distribution by Consumer Group
Consumer Group Households Share
Entry Level Suburban 9,669,164 7.9%
Entry Level Urban 6,393,294 5.2%
Simple Life Affluent w/o Children 8,556,772 7.0%
Simple Life Moderate Income with Children 5,112,666 4.2%
Simple Life Moderate Income w/o Children 6,621,513 5.4%
Feature & Location 8,785,936 7.2%
Family Life School Age Children 5,560,611 4.5%
Family Life Young Children 5,852,086 4.8%
Elite 10,671,019 8.7%
Active Adult Entry Level 7,462,382 6.1%
Active Adult Feature & Location 12,338,415 10.0%
Active Adult Elite 7,279,118 5.9%
Renters Near Term Buyers 11,774,679 9.6%
Renters 16,742,368 13.6%
7.9%
5.2%
7.0%
4.2%
5.4%
7.2%
4.5%
4.8%
8.7%
6.1%
10.0%
5.9%
9.6%
13.6%
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 44
The Homebuyer Playbook
New Home Sale Distribution For 12 Months by Consumer Group
Consumer Group Closings Share
Entry Level Suburban 47,229 11.3%
Entry Level Urban 17,366 4.2%
Simple Life Affluent w/o Children 37,572 9.0%
Simple Life Moderate Income with Children 24,224 5.8%
Simple Life Moderate Income w/o Children 14,843 3.6%
Feature & Location 29,134 7.0%
Family Life School Age Children 33,739 8.1%
Family Life Young Children 81,189 19.5%
Elite 43,421 10.4%
Active Adult Entry Level 11,474 2.8%
Active Adult Feature & Location 21,396 5.1%
Active Adult Elite 14,551 3.5%
Renters Near Term Buyers 18,300 4.4%
Renters 22,028 5.3%
11.3%
4.2%
9.0%
5.8%
3.6%7.0%
8.1%
19.5%
10.4%
2.8%
5.1%
3.5%
4.4%5.3%
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 45
The Homebuyer Playbook
Household Distribution vs. New Home Sale Distribution by Consumer Group
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 46
The Homebuyer Playbook
New Home Sale vs. Resale Distribution by Consumer Group
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 47
The Homebuyer Playbook
New Home Sale vs. Resale Share by Consumer Group
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 48
The Homebuyer Playbook
New Home Share of Total Sales by Consumer Group
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 49
The Homebuyer Playbook
New Home Sale vs. Resale Share by Consumer Group
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 50
The Homebuyer Playbook
Elite
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 51
The Homebuyer Playbook
Family Life – Young Children
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 52
The Homebuyer Playbook
Feature & Location
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 53
The Homebuyer Playbook
Simple Life – Affluent, No Children
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 54
The Homebuyer Playbook
Active Adult – Feature & Location
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 55
The Homebuyer Playbook
Who is Your Buyer?
OnTarget:
Consumer IntelligenceZero in to Find Your Best Customers and Markets
• Identify Your Buyers
• Troubled Projects
• New Communities
• Submarket Analysis
• New Market Analysis
Regional Director Territories 2017 © Metrostudy 56
Quita SyhapanyaME, NH, VT, MA, DE NY, CT, RI, PA, NJ
John CovertCO, NM, NE, KS
David CobbFL (South Ft. Myers, Naples, Miami, Treasure Coast)
Tony PolitoFL (Tampa, Sarasota)
Regional Director Territories
Territory Experts
Jack InselmannTX (San Antonio, Rio Grande)
Todd BritschWA, OR
Greg GrossCA (Central & N. CA); NV
Eric AllenID, MT, UT, WY
Mark GianopulosIA, IL, IN, MI, MN, MO, ND, OH, SD, WI
John MulvilleCA (S. CA)
Ben SageDC, MD, VA, WV
Amanda HoyleNC (Raleigh), SC
Eugene JamesAL, GA, KY, MS
Michael LeidelTN
Anthony CroccoFL (Jacksonville, Orlando, Central FL)
Vaike O’GradyTX (Austin)
Paige ShippTX (Dallas); OK, AR
Lawrence DeanTX (Houston)
Ryan BraultAZ
Jenifer Gooch NC (Charlotte)
Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 57
For any questions or suggestions contact
Heather Knutson—Director of Demand
Generation at [email protected]
Visit us at www.metrostudy.com
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.
Q & A