National New Home Building Trends2013

• Cash Transactions Up• Investor Home Purchases Up• First Time Home Buyers Home Purchases Down

Home Building at Historic Levels in Some MarketsHouston San AntonioAustin DallasRaleigh NashvilleJacksonville

National New Home Building Trends – cont.2013

Total Housing Starts in 2013 = 923,000SFD 618,000 + 15% vs. ‘12MF 306,000 + 25% vs. ‘12

22 Consecutive Months with House Price Appreciation

Slower New Home Sales in 4Q 2013

NAHB Remodeling Market Index (RMI) at Historic High

National New Home Building Trends – cont.2013

National Headwinds Relative to New Home Building and Sales

• Availability of AD&C Financing• High Cost of Developing New Lots• Rising Material Costs• Labor Shortages• Policy Risk

Tale of Two Housing MarketsGreater Louisville Area

For Sale New Construction

Good News!New “for sale” housing construction up the last two years vs.

down the previous five years

Bad NewsNew “for sale” construction still only at 60% of the 2002 numbers

Tale of Two Housing Markets – cont.Greater Louisville Area

Existing Housing Market

At best performance levels in last ten years

Highest Average Sales PriceHighest Median Sales PriceLowest Average Days on the Market

Highest number of sales since 2006

ULI National SurveyAmerican’s Views on Their Communities,

Housing & Transportation7 in 10 renters are hopeful that in 5 years they will own a home

9 in 10 report satisfaction with their current residence

4 in 5 are happy with the range of housing choices in their communities

2/3 live in SFD housing

Among those planning on moving in 5 years; 2/3 expect that move to be a SFD home

7 in 10 believe buying a home is a good investment

ULI National Survey – cont. American’s Views on Their CommunitiesHousing & Transportation

GenY/Millennials (ages 18-34)

• 7 in 10 expect to own a home in the next 5 years• Car dependent for commuting (77%)• More likely to seek a mix of uses when seeking a home to purchase• Most likely to want walkable communities and prefer transit• Will trade a short commute for a larger home

ULI National Survey – cont.American’s Views on their Communities,Housing & Transportation

GenX (ages 35-41)

Most likely to own a home (81%) and live in a SFD home (87%)Least likely to rent (16%)92% commute by car

ULI National Survey – cont.American’s Views on their Communities,Housing & Transportation

Baby Boomers (48-66)

Not likely to move soon, but when they do move they desire smaller homes and shorter commutes

Want to live near parks and apart from neighbors

Want to live where homes are alike Least likely to seek living in mixed use Least likely to value walkability90% commute by car