ConsumerInsights

The Plus Side of 55+

DesignLens

Delayed Marriage=Delayed Homeownership

Top 50 MPCs of 2014

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.

What Do You Call Home?

E-MAIL SURVEYOver 100 questions and several hundred variables regarding shopper’s opinions on their next home and community.

PARTNERSBuilders, developers, and Zillow joined in the effort nationwide by sending an e-mail to their prospective shoppers.

NATIONWIDE SAMPLEOver 22,000 responses are collected across the nation annually. We have access to over 50,000 total responses in our past survey database.

ConsumerInsights

What Do You Call Home?

Insight Customized

GEOGRAPHICWe 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 POINTWe 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 & LIFESTAGEWe understand that lifestage impacts purchasing behaviors. Reports are available specifically for 55+ and the millennial buyers.

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.

to Increase Your Bottom Line

HOMEKitchenBathroomPrivate outdoor livingGreat spaceArchitectural styleYard preferencesSpecifications & Technology

INTERIOR STYLEInterior style preferencesExterior style preferencesInterior specificationsTextureColor

COMMUNITYCommunity amenitiesLifestyle

ATTITUDESHow they liveHow they shopWhat they value

Fantastic Insight On:

To learn more about how you can better develop your next community, marketing strategy, or new product design, please contact:

MOLLIE CARMICHAELPrincipal

mcarmichael@realestateconsulting.com (949) 870-1214

The Plus Side of 55+by Chris Porter, Chief Demographer

It is time to get serious about listening to consumers and designing for the aging Baby Boomer population—the largest share of home shoppers today—who are looking for their next home opportunity as their children leave the nest and they consider retirement.

42% of the 22,000 home shoppers who took our 2014 Consumer Insights survey are 55+ and shared with us that:

• Home design will make them move (it is the third-most-important motivator for moving after location and price), but 55% say they can’t find what they are looking for.

• 43% want to downsize, with most wanting 1,500–1,999 square feet.

• Among those without children*:

ŵ 46% want to live in a community that is more multigenerational

ŵ 33% want an age-restricted community

ŵ 21% want an age-targeted community

Sample Newsletter

The opportunities offered by the 55+ population are huge. They represent:

• 25% of the total population

• 50%+ of current homeowners (likely with plenty of equity) and have a homeownership rate in excess of 75%

• 30%+ of total home transactions

All of these rates are only getting bigger.

The challenge is that the 55+ homeowner population tends to stay in place—less than 3% move per year, although it is higher for the younger portion of this cohort. Great design will make them move.

*Preference for age-restricted and age-targeted communties varies widely by geography.

Sample Newsletter Delayed Marriage EqualsDelayed Homeownershipby Mollie Carmichael, Principal

Sample Newsletter

decades, but homeownership rates for cohabitating couples are much lower than rates for married couples.

• The addition of children makes owning a home almost a necessity, given the need for yards, toys, education, and social circles.

• Children moving out often results in lifestyle changes, including different social circles, home size, and floor plan needs. Locational preferences also begin to shift.

Our Consumer Insights survey of 22,000+ new home shoppers, coupled with our Housing Demand Model by Lifestage and Price Point, shows just how much housing preferences have changed. These preferences can vary widely by geography and price point, and our team can help you make sense of how these changing dynamics are affecting your market.

The share of 25-- 29 year-olds who are married is down by almost 48% for men and 43% for women from 1970. This single fact is one of the biggest game changers in the housing industry.

What impact does this change in marital status mean for your housing strategies? It is huge! The housing market is unquestionably fueled by life stage changes, particularly the change of marital status and the addition (and subtraction) of children. These changes significantly affect where consumers want to live and what kind of home and community they will choose. For example:

• Singles are more likely to rent and live in locations that are closer to entertainment and employment, and these areas are seeing more demand today than they have historically.

• Marriage usually ignites the desire to own a home with a variety of locational and housing choices depending on income and family present.

• Cohabitation has certainly been on the rise in recent

will consider a smaller backyard if it is designed as a great outdoor space.

80%

of prospective shoppers say the design is one of the most important factors motivating them to buy a new home.

81%

ConsumerInsights

ConsumerInsights

of all shoppers have pets.

67% ConsumerInsights

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.

ConsumerInsights

BoomersBorn 1946 to 1964

Gen XBorn 1965 to 1979

Gen YBorn 1980 to 2000

ConsumerInsights

Top AmenitiesCheck 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.

23

Village Square Recreational Center Children’s Park

Grocery Store Close By Grocery Store Close ByGrocery Store Close By

Fitness CenterWalking Trails Walking Trails

Fitness Center Fitness Center Walking Trails

Restaurants Close By Restaurants Close ByRestaurants Close By

Organized On-Site Programming Shaded AreasCommunity-Wide events

Yoga/Pilates Studio Running Dog Park

RunningCommunity Intranet with Events,

Clubs, Bulletin Boards, etcLake, Pond, Stream, and Water

Elements, $50/Month

Organized On-Site Programming

Community Intranet with Events, Clubs, Bulletin Boards, etc

Children’s Water/Play Area

Community-Wide events Shaded Areas Community-Wide events

Shopping ShoppingVillage Square

Wi-Fi Internet Access in Public Areas

Shopping Recreational Center

Community High-Speed Internet

Recreational Center Village Square

Community High-Speed Internet

Wi-Fi Internet Access in Public Areas

Wi-Fi Internet Access in Public Areas

Shaded Areas Children’s Park Community High-Speed Internet

Look for our future trends in what consumers want in communities and homes by generation.

We believe it starts with your consumers.

Today’s shoppers rated Service & Retail as the most important

amenities for their next community

purchase.

*

All three generations ranked Fitness

Center and Walking Trails as top

amenities above retail shopping.

*

Community-Wide events rank above

pools, parks, and other typical amenities. Events can be much less

expensive too!

*

A Dog Park is among the top park choices. It scored highest for Gen

Y, followed by the Boomers.

*

Wi-Fi Internet Access and a

Community Intranet with Events, Clubs,

etc. are more important to the Boomers than

they are toGen X and Gen Y.

*

54

78

6

109

1112131415

1

BoomersBorn 1946 to 1964

Gen XBorn 1965 to 1979

Gen YBorn 1980 to 2000

Library Live Music in the Park Live Music in the Park

Cycling Movies in the ParkAdult-only Pool (18+)

Community Intranet with Events, Clubs, Bulletin Boards, etcAmphitheater Outdoors Dog Park

Art Shows in the Park Basketball Courts Lake, Pond, Stream, and Water Elements, $50/Month

Hiking Trails with Historical Markers of the Area

Lake, Pond, Stream, and Water Elements, $50/MonthOpen Space, $50/Month

WATER PARKSADVENTURE REC CENTERARTS &ENTERTAINMENTNATURE EVENTS SERVICE &

RETAILSPECIAL

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.

Events and experiences, as a whole, rank above “hard amenities”

like a pool.

*

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.

WWW.REALESTATECONSULTING.COM

Live Music in the Park Yoga/Pilates Studio Sport Fields

Hiking Trails with Historical Markers of the Area

Cycling Yoga/Pilates Studio

Dog Park Children’s Water/Play Area Tennis Courts

Organized On-Site ProgrammingTennis CourtsHiking Trails with Historical

Markers of the Area

Sport Fields Basketball CourtsRemote Guard Gate, $50/month

16171819202122232425

New Home Shoppers

BoomersBorn 1946 to 1964

ConsumerInsights

Generations

79%have 2 or fewer

people in household.

34%have 2 or fewer

people in household.

LIFE STAGE

10%66%

SingleFamily

14%21%

SingleFamily

Highest percentage of college graduates at 45%

9%44%

SingleFamily

56%have 2 or fewer

people in household.

47%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.

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.

47%of Boomers Gen X

are paying the highest monthly payments...not the Boomers.

They also have the highest incomes.

PAYMENT, PRICE, AND DOWN PAYMENT

of Gen Y

19% will pay $2,500+/month

52% want a home under $2,500/month

26% are looking for a home priced above $400k (varies by geography)

28% will pay $2,500+/month

45% want a home under $2,500/month

37% are looking for a home priced above $400k (varies by geography)

18% will pay $2,500+/month

69% want a home under $2,500/month

33% are looking for a home priced above $400k (varies by geography)

WWW.REALESTATECONSULTING.COM

New Home Shoppers

Gen XBorn 1965 to 1979

New Home Shoppers

Gen YBorn 1980 to 2000

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.

Top kitchen features include large islands, walk-in pantries, and high-tech appliances.

will use either their tablet or mobile phone while shopping for their next home.

Over 62%

ConsumerInsights

ConsumerInsights

avav

Insight Inspire Innovate

DesignLens can help you make smarter decisions and save your company money by providing you:

An invaluable resource of product information. We act as your scout, preselecting projects nationwide based on input from industry representatives familiar with great design throughout the country. With the guided walk-through you can find out what new, innovative or historical projects are out there and why they’re noteworthy, which ones are must-sees and which you feel like you’ve already visited through the DesignLens website.

Availability anywhere you have an internet connection: at your desk, at home, at a client or vendor’s office. It’s full-time access to inspiration.

Great Ideas by taking you on a tour with industry experts through some of the country’s freshest new residential production homes and master planned communities, providing beautiful images taken by our photographer, John Bare. You can also explore some classic historical neighborhoods, as well as new innovations and trends in home building.

Thousands of images are on our site with links to floor plans, site plans, project profiles and builder/consultant contact.

Unlike print magazines or other web based sites, DesignLens gives you 30-100 images of each project. That’s 300-1,000 images every month for an in-depth tour of some industry highlights. Our archive contains over a 100,000 images, floor plans, site plans, project information and contacts.

www.DESIGNLENS.com

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www.DESIGNLENS.com

Good to Great?

Ordinary Product Extra ordinary Product

Average Profit Outstanding Profit

Auto-Pilot Purposeful Planning

Scattered Results Focused Results

Management Leadership

Rear View Looking Forward

Reactive Proactive

Builder Driven Consumer Driven

Complacent Visionary

Fractured Communities Synergistic Communities

From To

DesignLens is intended to be a tool to

help you move from good to great in 2015.

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Insight Inspire Innovate

Online Image Tours of Great Communities

Established in 2001, DesignLens is the building industry's largest online library of photo tours for:

• Model Homes• Master Planned Communities• Historical Neighborhoods• Town/Commercial Centers

The 800+ communities and developments depicted on DesignLens have been specifically chosen for their innovations in architecture, design, land planning and/or historical significance.

A Photo Library of Inspiring Designs

The more than 100,000 images stored in the DesignLens archives are searchable by:

• Architectural Styles• Housing Types• Exterior Features• Interior Details• Green Building• Square Footages and House Widths• Regions, and more

Along with the photographs, DesignLens offers floor plans, site plans and written analyses that all help profile some of the country's finest examples of residential and commercial development.

A Resource that Gives You a Competitive Edge

DesignLens also provides communication tools that let you share this valuable information with clients and colleagues, including:

• Create slideshows for design boards and presentations

• Share images and ideas with clients from remote locations

• Make folders of your favorite images

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Become a SubscriberFor more information or to start you subscription, contact Isabell Kerins

ikerins@realestateconsulting.com

(949) 870-1241

1 1

2 2

3 5

4 6

5 4

6 10

7 11

8 15

9t 20

9t 9

11 7

12 8

13t 3

13t 22

15 N/A

16 N/A

17 12

18 38

19 14

20 16

21 13

22 18

23 24

24 19

25 21

2,601 3,419

1,431 1,416

851 838

719 791

609 841

585 600

508 570

500 468

493 372

493 618

487 726

468 649

451 854

451 360

444 235

442 193

437 566

425 245

419 475

417 457

411 515

410 515

385 341

374 373

368 361

-24%

1%

2%

-9%

-28%

-3%

-11%

7%

33%

-20%

-33%

-28%

-47%

25%

89%

129%

-23%

73%

-12%

-9%

-20%

-20%

13%

0%

2%

THE VILLAGES The Villages, FL (Central FL)

THE IRVINE RANCH1 Orange County, CA

NOCATEE Jacksonville, FL

RIVERSTONE Houston, TX

MOUNTAIN’S EDGE Las Vegas, NV

ALAMO RANCH2 San Antonio, TX

STAPLETON Denver, CO

ALIANA Houston, TX

VALENCIA Los Angeles, CA

LAKEWOOD RANCH Sarasota, FL

PROVIDENCE Las Vegas, NV

THE WOODLANDS Houston, TX

CINCO RANCH Houston, TX

RANCHO MISSION VIEJO Orange County, CA

COLLEGE PARK Riverside-San Bernadino, CA

WILDWOOD AT NORTHPOINTE Houston, TX

SUMMERLIN Las Vegas, NV

PAVILION PARK AT GREAT PARK Orange County, CA

LAKE NONA Orlando, FL

WOODFOREST Houston, TX

CROSS CREEK RANCH Houston, TX

CANYON LAKES WEST Houston,TX

CANE BAY PLANTATION Charleston, SC

BRAMBLETON Washington, DC

FIRETHORNE Houston, TX

Villages of Lake Sumter, LLC

The Irvine Company

The PARC Group

Johnson Development Corp.

Focus Property Group

Galo Properties

Forest City Enterprises

Aliana Development Company

Five Point Communities/Newhall Land

Schroeder-Manatee Ranch, Inc.

Focus Property Group

The Woodlands Development Company

Newland Communities

Rancho Mission Viejo, LLC

Standard Pacific Homes/Lennar Homes , LLC

Friendswood Development Company

The Howard Hughes Corporation

Five Point Communities

Tavistock Group

Johnson Development Corp.

Johnson Development Corp.

Land Tejas Company

Gramling Brothers Real Estate & Development

Brambleton Group LLC

Jefferson Development Company

2014

20142013

Rank Increased 1Irvine Ranch includes Cypress Village, Portola Springs, Stonegate, Woodbury, and Orchard Hills.

Rank Declined 2Estimate

2013

Project Name and Location

Rankings Developer Net Sales YOY%∆

Bold Multiple MPCs on list

50TopMaster-Planned Communities of 2014

-24%

1%

2%

-9%

-28%

-3%

-11%

7%

33%

-20%

-33%

-28%

-47%

25%

89%

129%

-23%

73%

-12%

-9%

-20%

-20%

13%

0%

2%

YOY%∆

26 N/A

27 17

28t N/A

28t 23

30 28t

31 49

32 11

33 N/A

34 43t

35 30

36 N/A

37 N/A

38t N/A

38t 27

40 50

41 N/A

42 41t

43 28t

44 37

45 N/A

46 32

47 N/A

48 N/A

49 N/A

50 46t

366 268

359 445

337 330

337 353

329 299

327 224

319 321

309 0

301 235

296 290

293 253

288 262

276 197

276 305

263 220

254 315

250 241

244 304

241 249

239 215

238 263

233 143

231 179

227 173

226 230

37%

-19%

2%

-5%

10%

46%

-1%

N/A

28%

2%

16%

10%

40%

-10%

20%

-19%

4%

-20%

-3%

11%

-10%

63%

29%

31%

-2%

TOWNELAKE Houston, TX

SIENNA PLANTATION Houston, TX

PHILLIPS CREEK RANCH Dallas, TX

DAYBREAK Salt Lake City, UT

VALENCIA RESERVE/COVE West Palm Beach, FL

OAKHURST AT KINGWOOD Houston, TX

EAGLE SPRINGS Houston, TX

BAKER RANCH Orange County, CA

WESTRIDGE Dallas, TX

MOUNTAIN HOUSE Stockton, CA

GREEN VALLEY RANCH Denver, CO

VIERA Palm Bay-Melbourne, FL

GRAND MISSION ESTATES Houston, TX

CRYSTAL FALLS Austin, TX

HIGHLANDS RANCH Denver, CO

OTAY RANCH San Diego, CA

ST. CHARLES Washington, DC

SHADOW CREEK RANCH Houston, TX

TERAVISTA Austin, TX

TREVISO BAY Naples, FL

THE MEADOWS Denver, CO

POSITANO2 East Bay, CA

DEL SUR San Diego, CA

AVE MARIA Naples, FL

RIVERSTONE Naples, FL

Caldwell Companies

Johnson Development Corp.

Republic Property Group

Kennecott Land

GL Homes

Friendswood Development Company

Newland Communities

Shea Homes/Toll Brothers

DR Horton

Shea Homes

Oakwood Homes

The Viera Company

Friendswood Development Company

Lookout Development Group

Shea Homes

McMillin Land Development/Baldwin & Sons

St. Charles Companies

Shadow Creek Ranch Development

Newland Communities

Lennar Homes, LLC

Castle Rock Development Co.

Braddock and Logan

Standard Pacific Homes

Barron Collier Companies

GL Homes

2014

20142013 2013

Project Name and Location

Rankings Developer Net Sales YOY%∆

SOURCE: John Burns Real Estate Consulting, LLC (January 2015)

TOTAL 22,238 23,112 -4%

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.

AffiliationsULI – Community Development CouncilBuilding Industry Association55+ Housing Council

MOLLIE CARMICHAELPrincipal

(949) 870-1214 mcarmichael@realestateconsulting.com

John BurnsCEO

Pete Reeb

Dean Wehrli

Lesley Deutch

Lance Ramella

Mollie CarmichaelJody Kahn

Lisa Marquis JacksonBusiness Development

Don Walker

Paige Shipp

David Kalosis

Dan Fulton

Ken Perlman

Steve DutraData Management

Team

Client Resources

Our

John Burns Real Estate Consulting, LLC takes great pride in our highly educated, resourceful and experienced team that includes practitioners with 25+ years of experience in both homebuilding and community development. As a research client, you gain access to our team across the nation to discuss market conditions, our current research and our forecasts.

Access to Our Nationwide Team of Experts

Rick PalaciosDirector of Research

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