new homebuyer playbook - metrostudy · new construction buyers who contacted a sales center....

Metrostudy Consumer Insights: Homebuyer Playbook Webcast—December © Metrostudy | December 13, 2017 | 1

New Homebuyer Playbook: The Who, What and How of Consumers


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?


Buyer considerations: Lots

26%of all existing home buyers

considered a lot/land

34%of new construction buyers

considered a lot/land


Purchased home was part of a larger community

70%Yes

30%No


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%


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%


Education

Household and buyer characteristics


75%Live with

spouse/partner

74%Employed

33%Have pets

44%have children

at home

Southeast

34%

Midwest

18%

West

23% Northeast

14%


Southwest

11%

Regional concentrations

Rural

19%


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%


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


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…



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


Platforms and devices used for online search

Average of four online resources used in search


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


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


@

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


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


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


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



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)


Reasons buyers chose 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


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?

mailto:[email protected]

Thank you!


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


The Homebuyer Playbook

Which Consumer Groups Buy New Homes?



What is Important to New Homebuyers?



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%



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%



Household Distribution vs. New Home Sale Distribution by Consumer Group



New Home Sale vs. Resale Distribution by Consumer Group



New Home Sale vs. Resale Share by Consumer Group



New Home Share of Total Sales by Consumer Group



New Home Sale vs. Resale Share by Consumer Group



Elite



Family Life – Young Children



Feature & Location



Simple Life – Affluent, No Children



Active Adult – Feature & Location



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)


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

new homebuyer playbook - metrostudy · new construction buyers who contacted a sales center....

Documents