I just read the Houzz & Home 2015 Review, which the smart people over at Houzz sent me. While the entire report is interesting (and can be read here: http://info.houzz.com/rs/houzz/images/HouzzAndHomeReportJune2015.pdf), there were a few points that really jumped out at me:
- Of those in the survey (all Houzz users, so perhaps not statistically perfect, but still insightful), only 10% of homeowners were 25-34. There has been much written about this trend in other places, but that still jumps out to me.
- Perhaps more surprisingly, only 18% of homeowners were 35-44.
- Put together, only 28% of people 44 and under are homeowners, in this survey. That is a remarkable trend. Will they buy ultimately, or will they stay renters?
- The majority of homes are owned by people 45+. That is not surprising in and of itself, but will there be a market for their homes whenever they choose to sell?
- Many baby boomers intend to age in place .. and renovate their homes as such.
- The desire for smart home technology in homes goes up significantly with income over $150,000, but still is generally the lowest ranked motivator for people to add to their homes.
- Improving design / functionality are the top motivators for renovations, again, not a shock to me. Kitchens lead the way in changes people want to make.
- Most people use cash for their projects, not financing. Financing these projects is a pain and this does not surprise me. Younger people are more likely to seek / use financing, but that is frequently a credit card. There is an opportunity in the financial markets for this sub-market, in my opinion.
The report is long at 43 pages, but easy to skim and does have useful information and trends. There are more nuggets in their then I mentioned, but I picked the ones most interesting to me. Without a doubt, the macro-level trend of younger people and families renting is the most significant to me, at every level of real estate.