1. Demographics and the Future of Transportation Policy: Real Estate Market Perspective Paul C. Bishop Managing Director, Research NATIONAL ASSOCIATION OF REALTORS ®

2. Where Do Buyers Choose to Live? Source: 2008 NAR Profile of Home Buyers and Sellers

3. What Type of Home Do Buyers Choose? Source: 2008 NAR Profile of Home Buyers and Sellers

4. What Do Buyers Look for in a Neighborhood? 34 and younger35 to 6465 and older Quality of neighborhood65%62%52% Convenient to job61%50%9% Convenient to shopping24%28%34% Convenient to schools23% 3% Convenient to health facilities6%9%24% Convenient to public transportation8%7%5% Source: 2008 NAR Profile of Home Buyers and Sellers

5. What Draws Buyers to Different Types of Communities? Suburbs Central city Small town Rural area Quality of the neighborhood69%59%58%41% Convenient to job53%57%48%42% Convenient to shopping29%30%24%17% Convenient to schools23%20%21%15% Convenient to health facilities9% 6% Convenient to public transportation5%21%4%1% Source: 2008 NAR Profile of Home Buyers and Sellers

6. Importance of Commuting Costs Correlated with Age of Buyer Source: 2008 NAR Profile of Home Buyers and Sellers

7. Central City Buyers Rate Commuting Costs as More Important Source: 2008 NAR Profile of Home Buyers and Sellers

8. Walkability Important Among Older Buyers Source: 2007 NAR Profile of Buyers’ Home Feature Preferences

9. Summary Home buyers are leading edge of change in real estate market – Suburbs dominate as location choice – that’s where the houses are – Older buyers show somewhat greater preference for small town (also car-dependent) setting than younger age groups – Age influences type of neighborhoods buyers are drawn to – Commuting costs more important for younger buyers – Walkability more important for older buyers Implication: Need a mix of transportation modes