Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Millennials: Obstacles, Opinions
& Opportunities Presented by:
Jack Long
MGIC Sales Manager
MGIC.com/social
The information presented in this presentation is for general information only, and is based on guidelines and practices generally accepted within the mortgage finance industry and is not intended to be all-inclusive. MGIC makes no representations or warranties of any kind with respect to the accuracy, completeness or suitability for any purpose of the information contained in this presentation. MGIC expressly disclaims any and all warranties, express or implied, including without limitation warranties of merchantability and fitness for a particular purpose regarding these materials and this presentation. In no event will MGIC be liable for any direct, indirect, incidental, punitive or consequential damages of any kind with respect to the presentation or materials provided. All examples are hypothetical and are for illustrative purposes only. This presentation is not intended and should not be interpreted or relied upon as legal advice. We encourage you to seek advice from a qualified professional.
Legal Disclaimer
Where’s the First-Time Homebuyer?
Factors that affect housing demand
$300
$350
$400
$450
$500
$550
$600
$650
$700
$750
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
The Increasing Cost of Renting
Median Asking Rent
1988-2013
Census Bureau 2014
MGIC.com/social
Why is everyone always talking about Millennials?
MGIC.com/social
5 million more members than Baby Boomers
in 70s!
MGIC.com/social
Largest demographic to
ever enter the nation’s
housing market
MGIC.com/social
MGIC.com/social
Generation Y or GenYers
Millennials
FOMO Generation
Net Generation
Echo Boomers
Boomerang Generation
Peter Pan Generation
What’s in a name?
Percent of demographic married by age 28:
Baby Boomers 42%
GenXers 29%
Millennials 21%
MGIC.com/social
18% Of first-time home
buyers are single females.
Source: NAR Profile 2015
MGIC.com/social
36.4% Of single women age
18-34 live at home with
parents or other relative
Source: Pew Research Nov. 2015
MGIC.com/social
Income is rising
Source: Fannie Mae National Housing Survey August 2015
Unemployment Nov 2015 by age group
25 – 34 = 5.3%
20 – 24 = 8.9%
U.S. total = 5% Source: Bureau of Labor
MGIC.com/social
More Millennials have an M.B.A. than have no
higher education at all Source: PayScale.com
MGIC.com/social
In 1960 5% of
women 18-34 were
enrolled in college.
In 2015:
27% Source: Pew Research Nov. 2015
MGIC.com/social
60% of college-educated Millennials
report annual income of $50,000
or more
MGIC.com/social
Millennial
Behavior
MGIC.com/social
Non Mortgage Debt
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
HE Revolving Auto Loan Credit Card Student Loan Other
Trillions of Dollars
Total Debt Balance and its Composition
Source: FRBNY Consumer Credit Panel/Equifax
MGIC.com/social
MGIC.com/social
“If you don't read the newspaper, you're uninformed.
If you read the newspaper, you're mis-informed.”
- Mark Twain
MGIC.com/social
38.8
28.5
18.5
10.1
4.2
% Borrowers by Balance in 2014
$1 - $10,000
$10,001 - $25,000
$25,001 - $50,000
$50,001 - $100,000
Over $100,000
Distribution of Student Loans
MGIC.com/social
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2005:Q4 2006:Q4 2007:Q4 2008:Q4 2009:Q4 2010:Q4 2011:Q4 2012:Q4 2013:Q4
no student debt with current student debt
with current student debt of 100K+ with 90+ delinquent student debt
with student debt, current or delinquent
Source: New York Fed Consumer Credit Panel / Equifax
Share borrowers age 25 - 30 years old with new mortgage originations
MGIC.com/social
18
20
22
24
26
28
30
32
34
36
2013
Perc
ent
Proportion with home-secured debt at age 30
Have Student Loan ages 27-30
MGIC.com/social
18
20
22
24
26
28
30
32
34
36
2013
Perc
ent
Proportion with home-secured debt at age 30
Have Student Loan ages 27-30 No Student Loan ages 27-30
MGIC.com/social
Federal Student Debt Repayment Plans
• Standard • Extended • Graduated • Income-Driven • Consolidated
47% Of student loan
borrowers appear to be in deferral or
forbearance periods.
Source: FRBNY
MGIC.com/social
86%
Homeownership provides protection
against rent increases
80%
Homeownership is an
investment opportunity
that builds long-term
wealth
77%
Homeownership
provides stability and/or
financial security
financial aspects
Source: Freddie Mac
Renters’ Views on Homeownership
MGIC.com/social
$2,090 $5,210 $5,600 $6,200 $6,100 $5,150
$36,450 $49,500
$83,760
$194,170
$277,590 $272,700
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Under 25 25-34 35-44 45-54 55-64 Over 65
Renter vs. Owner
Source: Joint Center for Housing Studies of Harvard University 2013; Dollars; 2010
Median Net Worth
MGIC.com/social
It is something to be proud of 91%
It can be passed on to your children 90%
It allows more flexibility to design it the way you want 89%
It gives you more privacy 86%
It gives you more independence and control 81%
It provides a better home life for children 76%
It is a sign of success 76%
It makes you feel more like part of a community 74%
It allows you to live in a better, safer neighborhood 60%
Source: Freddie Mac
Non-financial aspects
Renters’ Views on Homeownership
Where’s the First-Time Homebuyer?
Millennials Are Heavily Influenced By Their Peers
• I usually make the right decisions when I have the information I
need.
• People often come to me for advice
• When my friends agree with what I want to do, I feel more
excited about doing it.
• I usually don’t make a major decision until I have discussed it
with a few people whom I trust.
87% 85%
58% 70%
48% 70%
52% 68%
Millennials Shop Collaboratively
• 32% rely on company websites and reports for input.
• 33% rely on Professional reviews.
• 38% rely on consumer online reviews and blogs
• 42% rely on coworkers or classmates
• 65% rely on friends and family members.
• Every category is consistently higher than non-
millennials.
Millennials prefer and are using technology to
shop!
• Millennials are 262% more likely than the average shopper to
be influenced by Smartphone apps,
• 247% more likely to be influenced by blogs or social
networking sites, and
• 216% more likely to be influenced by in-store touch screen
displays
MGIC.com/social
58% of smart phone users
don’t go 1 hour
without checking their
phones!
68% of those 18-34
MGIC.com/social
Millennials are slightly more likely than older
shoppers to write a product review or complaint
But…….
Their reviews or complaints are going viral. Going out to
potentially thousands rather than to just one person in the
complaint department!
What’s your Brand? Millennials are probably
already talking about you!
• Sometimes “good “, sometimes “bad”
• Do you know what they are saying?
• Are you actively responding?
MGIC.com/social
0
100
200
300
400
500
600
700
12-17 18-24 25-43 45-54 55-64 65+
Nu
mb
er o
f Fa
ceb
oo
k fr
ien
ds
Source: Statista, as of February 2014
Average number friends of users in the United States, by age group
Facebook Friends
MGIC.com/social
Join the celebration & get tagged!
Facebook Fan Pages
Share Industry Insights
Support Business Partners
Loan Officers
Small Community Businesses
Learn how you can avoid the Top Regrets of Homebuyers.
Scan me
MGIC.com/social
74% “know and understand
the financial process of buying a home”
44% believe 20% down
payment is required
Source: Wells Fargo, Sep 15, 2014
MGIC.com/social
23% Saving for down payment most difficult task
Source: NAR Profile of Buyers & Sellers 2014
MGIC.com/social
44%
62% 58%
Age 18-24 Age 25-34 Age 35-44
Source: Freddie Mac
#1 Reason Renters Won’t Buy
MGIC.com/social
56% Renters who prefer to own but are not currently pursuing it
because it would be too difficult to get a mortgage
Source: Pulte Group May 2014
MGIC.com/social
74% Who fear they wouldn’t qualify admit they
haven’t taken the steps to see if they would
Source: Pulte Group May 2014
MGIC.com/social
The Wave of First-Time Homebuyers
Born in 1985 & will turn 31 in 2016
Most Millennials just entering first-home buying years
MGIC.com/social
What do I know about Millennials?
I learn something new
every day!
MGIC.com/social
@mgic
mgic.com/mgicconnects
MGICvideos
MGIC.com/social
www.linkedin.com/in/jacklong2
Thank You!
My electronic business card is available at: https://mgic01.cardtapp.com/