millennials and housing - cmla...what matters to millennials connected to and influenced by their...
TRANSCRIPT
millennials and housing
CMLA
May 5, 2016
outline
Millennials, Gen-Xers, and Baby Boomers: similarities and differences
Colorado population: in-migration and forecast by generation
What Millennials think
CHFA’s Millennial marketing
CHFA’s 2015 loan characteristics by generation
2
generation comparison: pop culture
Game of thrones Veep Birdman Angela Merkel Uptown Funk!
Everybody Loves Raymond Will and Grace American Beauty George W. Bush Breathe
Dallas Taxi Ordinary People Lech Walesa Bette Davis Eyes
generation comparison: denver home prices
$356,893 average home not inflated
average home inflation adjusted $356,893
$239,779
$330,033
$83,893
$218,747
denver
generation comparison: interest rates
3.85% average
interest rate (freddie mac)
4.69% 16.63%
generation comparison: income
$64,000 median 2 person hh, not inflated
median 2 person hh, inflation adjusted $64,000
$66,800
$66,087
$22,358
$58,297
denver
generation comparison: mortgage payment
$2,119 PITI payment
(inflation adjusted and average
interest rate)
$2,122 $3,326
generation comparison: economy
65% homeownership rate 67% 64%
colorado
3.5% unemployment rate 2.7% 5.9%
generation comparison: population
5,443,612 state population 4,301,261 1,889,733
colorado
319,920 douglas county population 175,766 25,153
student debt in colorado
debt and cost 2014 graduates
(lower 20s millennials)
2010 graduates (upper 20s & lower
30s millennials)
2000 graduates
(gen-x)
Average debt, not inflation-adjusted
$25,064 $22,017 $17,139
Average debt, inflation-adjusted (2015 dollars)
$25,094 $23,931 $23,590
Percent with debt 56% 55% 52%
Total annual cost of on-campus attendance, not inflation-adjusted
$27,435 $22,977 $13,502
Total annual cost of on-campus attendance, inflation-adjusted (2015 dollars)
$27,468 $24,975 $18,584
Source: college-insight.org
10
percent of consumers originating a mortgage by age (2010-2014)
11
0%
5%
10%
15%
20%
25%
30%
35%
40%
2010 2011 2012 2013 2014
18-22 23-27 28-32 33-37 38-42
Source: Wei Li and Laurie Goodman, Urban Institute. “Americans’ Debt Styles by Age and Over Time”
Millennials 11 – 30 in 2010
Millennials 31-45 in 2030
12
13
how to describe millennials
0 20 40 60 80 100
Willing to sacrifice
Compassionate
Wasteful
Self-reliant
Politically active
Self-absorbed
Religious
Moral
Responsible
Hard working
Cynical
Idealistic
Environmentally conscious
Entrepreneurial
Patriotic
Rigid
Tolerant
Greedy
Not Selected/NoAnswer
Yes, I Would DescribeMy Generation as
14
Source: Pew Research Center 2016
what matters to millennials
Connected to and influenced by their peers
Skeptical of mainstream media
Seek blogs, reviews, and social media
Seek tangible first-hand experiences
Want to make an impact on world locally
Support causes; cause products
Desire to be understood and to understand
Technology is an enabler for meaningful connection
Connects them to others with similar interests, experiences, or beliefs
Plan and research where they will spend time
15
“there is much more to life than a job”
Seek diverse-experiences, collaboration
Self-expression and autonomy
Not driven by money or climbing the corporate ladder
Will earn less to believe in the cause of their work
Entrepreneurial – create their own business
16
housing and lending impacts
82%: owning a home is a part of their American Dream
Prefer fix-up vs. “cookie-cutter”
72% consider themselves handy – “Fix-It Generation”
Fiscally savvy – they do their homework
Technology is key
Shopping online, home must have tech features
Mortgage acquisition and loan servicing
Email, text, website, mobile application – must allow for personalization
grant yourself the freedom
grant yourself the freedom
Website
Lender page
Consumer page
Social media – posts and contests
Your Road Home eNews
Digital, broadcast, radio advertising
Lender toolkit
Flyers
chfa 2015 loan production by generation
generation total loan amount average loan
amount % single family
detached %
attached/PUD %
manufactured
Millennial $413,375,407 $186,121 68% 29% 3%
25 and under $97,763,020 $171,214 62% 34% 4%
26-30 $150,999,815 $185,960 66% 31% 3%
31-35 $110,392,001 $193,670 71% 25% 4%
Generation X $214,717,065 $196,808 71% 26% 4%
36-40 $75,611,813 $194,876 67% 30% 3%
41-45 $56,996,727 $192,557 70% 26% 4%
46-50 $37,764,416 $184,217 70% 26% 3%
Baby Boomer $88,587,565 $178,965 61% 34% 5%
51-55 $34,912,785 $179,963 62% 35% 3%
56-60 $19,037,053 $166,992 55% 39% 6%
61+ $17,718,470 $161,077 51% 41% 8%
total $722,775,774 $188,076 68% 28% 4%
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thank you Jerilynn Martinez [email protected] Margaret Miller [email protected]