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ResidentialHousing Market:Is opportunityupon us?
Alan P. MarkPresident, The Mark CompanyMay 24, 2011
Agenda
• Tracking homebuyer trends
• Top buying groups• How to reach them• How to design for them• What’s next?
The Mark Company
• Design development, market research, sales and marketing
• Mid- to high-density residential developments
• Projects throughout Bay Area, Los Angeles, San Diego, Denver, Las Vegas
Homebuyer Trends
• Gen Y and Baby Boomers emerged as biggest home- buying groups
• Interest in urban locales & convenience of HOA
• Why they are buying NOW
Who are they? Baby Boomers
• Between 46 - 64 years old• Roughly 75 million people• Experienced buyers• Drawn to urban locations• Empty nesters• Looking ahead to retirement• Gay couples• Second homes• All-cash purchases common
Who are they? Gen Y
• Between 16-33 years old• Roughly 80 million people• First-time homebuyers• Well-educated• Tech-savvy• Lifestyle driven• Value sense of community• Financial assistance from parents
PopulationM
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Buyer Profile Trends
Note: Based on TMC projects in San Francisco Bay Area, Los Angeles, Denver during past four years.
Top Purchase Drivers
Baby Boomers Gen YLow maintenance living
Finishes ValueLocation Sense of community
Views AmenitiesBrand names Lifestyle
Brand Names: Baby Boomers
Marketing To Baby Boomers
• Promote sense of community and refined living
• Use imagery and models that look like them
• Traditional and non-traditional media
• Be aware of other stakeholders: children or financial advisors
• Buying for themselves for adult children
Brand Names: Gen Y
Marketing To Gen Y• Messaging needs to be value
and lifestyle-driven- Attainable luxury living
• Use imagery and models that look like them
• Text/email over phone calls• Drawn to sense of
community- Events - Social media- Online - Co-
marketing
Designing For Baby Boomers
• Convenience & walkability• Amenities: Emphasis on refined lifestyle• Unit Design: Comfort
- Single-level- Impeccable design- High-end finishes- Fewer bedrooms- Larger living/dining rooms
Designing For Gen Y • Amenities: Emphasis on
social
• Unit Design: Flexibility- Built-in office/desk- Stylish finishes, but not top
of the line- Smaller space ok
- Community room- Fitness center- Dog run- Rooftop deck- SmartHome technology
What’s Next? • Buyer profiles will continue to evolve and
change• Fannie Mae and FHA guidelines becoming
more stringent• Emphasis on lifestyle and value
