millennials and housing - cmla...what matters to millennials connected to and influenced by their...

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

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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

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percent of consumers originating a mortgage by age (2010-2014)

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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

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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

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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

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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 jmartinez@chfainfo.com Margaret Miller mmiller@chfainfo.com