1. Home Trends & Millennials’ Home Preferences JANUARY 21, 2015 || 8:00 – 9:00 AM Presenter: Rose Quint || NAHB Economics, Washington, DC

2. 1.Characteristics of New Homes Built in 2014 2.Characteristics of New Homes Coming in 2015 3.What Millennial Home Buyers Want

3. Characteristics of New Homes Built in 2014

4. Source: U.S. Census Bureau. Note: Data for 2014 is based on the first two quarters. Average Size of New Single-Family Homes Started (Square Feet) After rising for 4 consecutive years, home size began to recede in 2014.

5. Homes with 4+ Bedrooms (% of single-family homes started) Share of new homes with 4+ bedrooms: About even from 2013 to 2014 46% to 47%

6. Homes with 3+ Full Bathrooms (% of single-family homes started) Share of new homes with 3+ full bathrooms: About even from 2013 to 2014 35% to 36%

7. Homes with 3+ Car Garage (% of single-family homes started) Share of new homes with 3+ car garage: About even from 2013 to 2014 22% to 23%

8. Homes with 2+Stories (% of single-family homes started) Share of new homes with 2+stories: Even from 2013 to 2014 at 58%

9. What Will Happen to Home Size in 2015? Average will likely continue to recede WHY? 3M jobs created in 2014 – most since 1999 New rules to loosen credit tightness Moderate home price growth in 2014 Will allow more people (young, 1 st -time buyers) to enter market. They will demand smaller, more affordable homes.

10. Characteristics of New Homes Coming in 2015 (Based on a survey of builders nationwide in December ‘14)

11. 10 MOST LIKELY Features in Typical Single-family Home in 2015 (1=Not at all likely, 5=very likely; avg. rating)

12. 10 LEAST LIKELY Features in Typical Single-family Home in 2015 (1=Not at all likely, 5=very likely; avg. rating)

13. What Millennial/Gen Y Home Buyers Want

14. Type of Home Wanted Single-family: 75%Townhouse: 11% Multifamily Apartment: 4% Manufactured Home: 3%

15. Type of Area Preferred 15 Suburbs: 66% Central City: 10% Rural: 24%

16. Home Size (Median Square Feet) Millennials want 43% more space than they have now.

17. Willing to Accept to Make Home Affordable (% of Gen Y Respondents)

18. Most Want Kitchen Open to the Family Room, and.. (% of Gen Y Respondents) A Two-Story Home

19. Most Millennials Want 3 or 4 Bedrooms (% of Gen Y Respondents)

20. 2 ½ Baths Are Enough for Most Gen Y Buyers (% of Gen Y Respondents)

21. The Most Wanted List (% of Gen Y Respondents)

22. Most “Unwanted” List (% of Gen Y Respondents Rating “Do Not Want”)

23. Most Millennials Will Pay 2%-3% more for Energy Efficient Home (% of Gen Y Respondents)

24. Most Would Be Seriously Influenced to Move to a Community if It Had… (% of Gen Y Respondents)

25. Rose Quint ASVP Research NAHB Economics 202.266.8527 1201 15 th Street NW Washington, DC 20005 Speaker Contacts: Head Shot