home trends, buyer preferences & must-have features for...

IBS Education

Home Trends,

Buyer Preferences &

Must-Have Features for 2020

The material in this education session has not been reviewed, approved, or endorsed by the National Association of Home Builders (NAHB). The topics discussed and the materials provided herein are for informational purposes only, are not intended to be an exhaustive presentation of information on a particular subject, and should not be treated as such. The speaker or speakers are not acting on behalf of or at the direction of NAHB.

NAHB specifically disclaims any liability, loss or risk, personal or otherwise, which may be incurred as a consequence, directly or indirectly, in the use or application of any of the materials presented in this or any other education session presented as part of the International Builders Show®.

NAHB Disclosure

IBS Education |

IBS Education |

Characteristics of New Homes Built in 2019

IBS Education |

Size of New Single-Family Homes Started(Sq. Ft.)

1,500

1,700

1,900

2,100

2,300

2,500

2,700

2,900

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

2,499 2,520Average

2,689

2,362

After peaking at 2,689 sq. ft. in 2015…

Average Size of New Homes has fallen FOUR years in a row.

In 2019, the average new home was 2,520 sq. ft. –the smallest since 2011.

Source: U.S. Census Bureau.

2,300

Median

IBS Education |

New Homes with 4+ Bedrooms(% of single-family homes started)

After peaking at 47% in 2015…

% of new homes with 4+ bedrooms has edged down in the past four years.

In 2019, the share was unchanged at 44% – the smallest since 2012.0

5101520253035404550

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

44%

34%

39%

47%

36%


IBS Education |

New Homes with 3+ Full Bathrooms(% of single-family homes started)


% of new homes with 3+ full bathrooms has trended down in the past four years.

In 2019, the share was 33% – the smallest since 2012.0

510152025303540

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

37%

27%

23%

33%

20%


IBS Education |

New Homes with 3+ Car Garage(% of single-family homes started)


% of new homes with a 3+ car garage has fallen for FOUR years in a row.

In 2019, the share was 18% – back to 2011 level & just slightly above recession level (16%).0

5

10

15

20

25

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19

20%

16%

23%

18%18%


IBS Education |

TAKEAWAYS

Builders are working to meet demand for smaller homes.

The average new home in 2019 was the smallest since 2011 & only 20 sq. ft. larger than in 2007.

Why is it difficult to build small?

• Restrictive zoning/land use regulationsMin lot size; Min parking requirements; Design Standards; Inclusionary Zoning

• Lot prices

IBS Education |

BALA WinnersICON Ebony, Palm Springs, California


IBS Education |

BALA WinnersThe Binkley, St. Petersberg, Florida

IBS Education |

BALA WinnersThe Kiawah River Butterfly Cottage, Johns Island, North Carolina

IBS Education |

BALA WinnersTerra Luna Plan 1, Las Vegas, Nevada

IBS Education |

BALA WinnersAlastar, Douglas, Michigan

IBS Education |

BALA WinnersCrescendo at Central Park, Highlands Ranch, Colorado

IBS Education |

Must-Have Features in 2020

IBS Education |

Most Likely Features in Typical 2020 New Home(Avg. Rating, 1=Not at all likely, 5=Very Likely Builder will include)

4.94.84.8

4.74.7

4.64.64.64.6

4.44.4

4.34.24.24.24.24.24.24.24.2

Walk-in closet in master bedroomLow-e windows

Laundry roomEfficient lighting (< energy than traditional bulbs)

Great room (Kitchen-Family-Living room)Central Island in kitchen

Programmable thermostat9' feet+ ceilings in 1st floorENERGY STAR appliances

2-car garageFront porch

Exterior lightingPrivate toilet compartment in master bathroom

Water-conserving toiletsBathroom linen closet

Indoor fireplacePatio

Walk in pantryENERGY STAR windows

Granite countertop in kitchenSource: NAHB Economics.

IBS Education |

Most Unlikely Features in Typical 2020 New Home(Avg. Rating, 1=Not at all likely, 5=Very Likely Builder will include)

Source: NAHB Economics.

1.31.41.4

1.51.6

1.82.1

2.22.22.2

2.32.3

2.42.5

Cork flooring for living areas on main levelGeothermal heat pump

Solar water heating/electric systemDual toilets in master bath

Laminate countertop in kitchenPet washing station

Outdoor kitchen (cooking, refrigeration, & sink)Carpet flooring for living areas on main level

Whirlpool in master bathroomSunroom

Media roomOutdoor fireplace

Two-story family roomTwo-story foyer

IBS Education |

Home Buyer Preferences

1st Time Buyers

vs.

Repeat Buyers

IBS Education |

Preference for Type of Home to Buy

Single-family Detached

Townhome MultifamilyUnit

Manufactured Home

1st Time 77% 9% 6% 5%Buyers

Repeat 77% 13% 4% 3%Buyers

IBS Education |

Preference for New vs. Existing Home

New Home Existing Home

1st Time 41% 59%Buyers

Repeat 56% 44%Buyers

IBS Education |

Preference for Home Size

Current Home Size

1st Time 1,268 sq. ft. 1,977 sq. ft. (56%)Buyers

Repeat 1,926 sq. ft. 2,066 sq. ft. (7%)Buyers

Desired Home Size

IBS Education |

Preference for Location

Suburbs Rural

1st Time 59% 26% 15%Buyers

Repeat 65% 24% 11%Buyers

Central City

IBS Education |

BALA WinnersRay Meadows R270, Redmond, Washington

IBS Education |

BALA WinnersAvance, Phoenix, Arizona

IBS Education |

BALA WinnersMiraval II, Costa Mesa, California

IBS Education |

BALA WinnersAzure Residence 1, Paradise Valley, Arizona

IBS Education |

BALA WinnersUrban Costal Farmhouse, Franklin, Tennessee

IBS Education |

BALA WinnersEstancia at Yorba Linda Olimpico, Yorba Linda, California

IBS Education |

BALA WinnersRouge at Pivot, Edmonton, Alberta and 81 Crain Square Boulevard, Houston, Texas

IBS Education |

Preference for Parking Facility

2-Car Garage 3-Car Garage



None

IBS Education |

Preference for Number of Stories

1-Story 2-Story



Split Level

IBS Education |

Preferences to Keep in Mind

Open Kitchen-Family Room

Three Bedrooms

Laundry on the 1st Floor



IBS Education |

Preference for Color of Kitchen Cabinets

White



Medium Brown

IBS Education |

Preference for Color of Kitchen Appliances

Stainless Steel



Black

IBS Education |

Preference for Kitchen Countertop Material

Granite/Natural Stone



Quartz/Engineered Stone

Laminate

IBS Education |

Most Wanted Features

1st TimeBuyer

Laundry room

Hardwood flooring (main level)

ENERGY STAR windows

Walk-in pantry

Patio

Ceiling fan

Table space for eating in kitchen

Kitchen double sink

Both shower stall/tub in master bath

Dining room

RepeatBuyer

Laundry room

ENERGY STAR windows

Patio

ENERGY STAR appliances

Ceiling fan

Exterior lighting

Garage storage

Hardwood flooring (main level)

Walk-in pantry

Kitchen double sink

Common to both

IBS Education |

Most UNWANTED Features

1st TimeBuyer

Elevator

Charging station for electric car

Cork flooring (main level)

Wine cellar

Golf course community

Pet washing station

Only a shower stall in master bath

Wine cooler

Roof covered by plants

High density community

RepeatBuyer

Elevator

Wine cellar

Roof covered by plants

Daycare center nearby

Pet washing station

Dual toilets in master bath

Two-story family room

Cork flooring (main level)

High density community

Laminate kitchen countertops

Common to both

IBS Education |

BALA WinnersLakemore Residence, Austin, Texas

IBS Education |

BALA WinnersModern on the North End, Anna Maria, Florida

IBS Education |

BALA WinnersKingfield, Rye Brook, New York and Kirkwood Terrace, Sammamish, Washington

IBS Education |

BALA WinnersLakemoore Residence, Austin, Texas

IBS Education |

BALA WinnersWedgewood Plan 2, Yorba Linda, California

IBS Education |

BALA WinnersIn Plane Sight, Paradise Valley, Arizona and Sennette Residence, Asheville, No. Carolina

IBS Education |

Which Would You Prefer for Same Amount of Money?

Bigger house w/ fewer amenities

Smaller house w/ high quality products & amenities



IBS Education |

BALA WinnersTrend at Novel Park, Irvine, California

IBS Education |

BALA WinnersSurf Betty, Port Aransas, Texas

IBS Education |

BALA WinnersHickory Hill, Gull Lake, Michigan

IBS Education |

BALA WinnersMercer Island Residence, Mercer Island, Washington

IBS Education |

BALA WinnersPhoenician Modern, Scottsdale, Arizona

IBS Education |

BALA WinnersHarbor Island, Newport Beach, California

IBS Education |

BALA WinnersVail, Vail, Colorado

Speaker Contact Information

Rose [email protected], DC

Donald J. Ruthroff, AIADAHLIN GROUP ARCHITECTURE | [email protected], California

home trends, buyer preferences & must-have features for...

Documents