IBS Orlando was an inspiring, busy, and exciting way to start off the new year with over 85,000 attendees. Our experts spoke at 6 sessions, hosted a Zonda lounge at the Ritz, and emceed the Nationals. What a whirlwind!
If you missed it, have no fear. We packaged up a great recap for you. Find out what Millennials are doing about unaffordable homes, how long this year’s strong economy is predicted to last, and more below.
2018 Starts Off Strong, But How Long Will It Last?
“We are not oversupplied, prices are starting to level, and we have job growth. Generally, we’re in pretty good shape. 2018 is pretty positive.” – Tim Sullivan, Managing Principal
Watch Tim give an interview on Professional Builder Show Village LIVE where he answers the new year’s most pressing questions:
How long will the economy hold up prior to a downturn? Is a downturn coming?
What could cause the next recession?
For a builder, what would you tell them to pay attention to over the next few years?
Is land development an untapped opportunity?
Solutions For Millennials Who Struggle With Affordability
Ali Wolf, our Director of Economic Research, partnered with Danielian Associates Architecture + Planning to marry data & design to figure out the best ways to provide attainable housing for Millennials. Watch her interview and read her top talking points from her session on Millennials below:
Two Millennials Tell All: Deconstructing Today’s First-Time Buyers And Their Design Preferences
Millennials say affordability is the #1 reason they don’t already own a home. In just the past 5 years alone, national incomes have risen 10% compared to 40% price appreciation for new and existing homes. Making matters worse, the demand for bottom-tiered home prices, largely driving by first-time buyers, is pushing prices in this segment up faster than middle- and top-tier homes.
We ran the math. A new single-family detached home is unaffordable for the average Millennial in 40% of the top markets in the country, assuming a 10% down payment. Using the same assumptions, only 20% of the top markets are unaffordable when looking at the median attached new home price (assuming a $150 HOA). While Millennials will almost unanimously tell you they are seeking a single-family detached home, many are willing to make a compromise on their first home.
In the interactive session, Ali learned:
The majority of Millennials polled are willing to make parking concessions to get into homeownership (like giving up the standard two car garage)
Most of the Millennials would opt to skip on a tech savvy home on day 1, knowing they’d make adjustments in the future
100% of the Millennials in our audience value value over quality for their first home (i.e. cheaper wood floor alternatives compared to actual wood floors)
Zonda Continues To Lead The Data Front
Remember the saying, “a picture is worth a thousand words?” That rang especially true for the executives, sales, and marketing teams who stopped by our booth and saw Zonda as a “left brain – data” “right brain – images” app that allowed them to visually see market trends. Zonda’s beautiful imagery such as heat maps and easy-to-understand infographics made everyone realize that you don’t have to be traditionally trained in data to understand it.
We’ve donated 100% of the money we raised from our 2018 Housing Market Outlook to Homeaid to help build housing for today’s homeless. We are humbled by the generosity of our sponsors and attendees to support a cause we deeply care about. Thank you!
Our 2018 forecast was the imminent disruption of the housing industry, with tech as a significant factor in revolutionizing the way home building and builders operate now. Read ProBuilder’s full coverage of our event.
We will have another Housing Market Outlook event on April 18th in sunny Newport Beach, CA. Early bird tickets are already available! If you know you can’t make it, please consider making a donation in any amount.