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May 11–13, 2015 \ Turnberry Isle \ Miami
THE MILLENNIAL SESSION:
Research, Insight, Action
May 11–13, 2015 \ Turnberry Isle \ Miami
THE MILLENNIAL SESSION: RESEARCH, INSIGHT, ACTION
May 11–13, 2015 \ Turnberry Isle \ Miami
MILLENNIALS NOW LARGEST BUYER SEGMENT
31%
30%
16%
14%
9%
Millennials
Gen X
Early Boomers
Late Boomers
Silent
Source: NAR Home Buyers and Sellers Generations 2014
May 11–13, 2015 \ Turnberry Isle \ Miami
GEN Y VS GEN X: WHERE DID THEY LIVE AT 30?
19%
36%
45%
13%
45%43%
0%
10%
20%
30%
40%
50%
Core Municipalities Suburbs Outside Major Metropolitan Areas
2000% of Age 20-29 2010% of Age 20-29
Source: Wendell Cox, www.newgeography.com
May 11–13, 2015 \ Turnberry Isle \ Miami
SCHOOLS, COMMUTES MOST IMPORTANT
51%
34%
29%26% 26% 26%
23%
36%
20%
16%
11%9%
13%
7%
0%
10%
20%
30%
40%
50%
60%
High Quality PublicSchools
Short commute towork
Age-diversecommunity
Buy as a large ahouse as you can
Having a largehouse
Racially diversecommunity
Living in the centerof it all
Under 40 Over 50
Source: NAR Community Preference Survey 2013
May 11–13, 2015 \ Turnberry Isle \ Miami
BEST METROS FOR MILLENNIALS
Rank Metro Area Wage Change for Gen Y Median Pay for Gen Y
Commute Time
for Gen Y % Gen Y
Gen Y Metro
Score
1 Seattle 4.4% $ 44,000 24.3 0.22 1.61
2 Houston 4.3% $ 44,000 24.8 0.22 1.52
3 Minneapolis 3.3% $ 42,800 20.4 0.23 1.46
4 Washington, DC 3.2% $ 49,500 30 0.26 1.25
5 Boston 3.3% $ 46,200 29.9 0.25 1.16
6 Dallas 2.9% $ 41,200 20.6 0.21 1.11
7 New York 2.9% $ 46,900 30.6 0.26 1.04
8 Tampa 2.7% $ 36,600 20.7 0.19 0.83
9 - Tie Philadelphia 2.6% $ 42,000 28.7 0.23 0.81
9 - Tie San Francisco 2.2% $ 51,300 29.3 0.22 0.81
Source: Best Cities for Gen Y, www.payscale.com, 2012
May 11–13, 2015 \ Turnberry Isle \ Miami
MULTIGENERATIONAL HOUSEHOLDS
1%
19%
36%
23%
37% 36%
46%
27%
0%
10%
20%
30%
40%
50%
Millennials Gen X Baby Boomers Silent
Boomerang Children Aging ParentsSource: NAR Home Buyers and Sellers Generations 2014
May 11–13, 2015 \ Turnberry Isle \ Miami
MILLENNIALS & THEIR HOMES
Still Seeking the American Dream
May 11–13, 2015 \ Turnberry Isle \ Miami
MILLENNIALS ARE DIFFERENT
78%
42%
29%35%
57%
18%
40%
24%
Non-HispanicCaucasians
Married Live with Parent Homeowner
1980
2012
18 to 29 Year Olds
. . . They are more diverse and “delaying adulthood”
Source: US Census
May 11–13, 2015 \ Turnberry Isle \ Miami
THEY STILL WANT THE AMERICAN DREAM
75%Believe ownership is an
important long-term goal
16%
24%
60%
73%Believe ownership
is an excellent investment
Plan to Purchase
Already Own
Will Not Purchase
Source: The Demand Institute Housing Survey (2013)
. . . And believe housing is an excellent investment
May 11–13, 2015 \ Turnberry Isle \ Miami
MORE SPACE IS A TOP PRIORITY
2%
36%
36%
26%
Easy
Next Home Type
61% 24%
15%
Want morespace
Want the sameamount
Want less space
Rent
Purchase
Rent
Purchase
Space Preferences
Sin
gle
-Fa
mily
Mu
ltifa
mily
Source: The Demand Institute Housing Survey (2013)
. . . Many not ready to purchase will rent single-family homes
May 11–13, 2015 \ Turnberry Isle \ Miami
MILLENNIALS WILL HEAD FOR THE SUBURBS
Source: The Demand Institute Housing Survey (2013)
Easy
38% 48%
14%
Urban
Suburban
Rural
Location Preferences for Their Next Home
61% 28% 54% 28%57% 19%
Grocery Stores RestaurantsRetail
Short
Drive
Walking
Distance
. . . And are fine being a short drive from most places
May 11–13, 2015 \ Turnberry Isle \ Miami
THEY DO FACE FINANCIAL CHALLENGES
$3,000Non-Retirement
Savings
$5,000Non-Mortgage
Debt
44%think it will be difficult
to qualify for a
mortgage
69%would consider a
lease-to-own
approach
. . . And are open to new approaches to home ownership
Source: The Demand Institute Housing Survey (2013)
May 11–13, 2015 \ Turnberry Isle \ Miami
THERE ARE FOUR GROUPS OF MILLENNIALS
23% 36% 24% 18%
Millennial Housing Segments
Struggling
Families
White Picket
Fences
Modern Amenity
Seekers
Single
Urbanites
More Likely to Rent More Likely to Purchase
. . . each have distinct needs and intended behaviors
Source: The Demand Institute Housing Survey (2013)
May 11–13, 2015 \ Turnberry Isle \ Miami
SINGLE URBANITES
54% 38% 8%
19% 81%23% of Millennials
Least likely to be
married and have
kids
More diverse
Less affluent• Multifamily building
• Near services, amenities & public transit
• Space is less important
Urban Suburban Rural
Purchase Rent
Source: The Demand Institute Housing Survey (2013)N
ext
Ho
me
& C
om
mu
nity
May 11–13, 2015 \ Turnberry Isle \ Miami
STRUGGLING FAMILIES
30% 50% 20%
32% 68%
• Single-family home
• Responsive landlord
• Want more space in and around home
36% of Millennials
Most likely to include
single parents
Less diverse
Least affluentUrban Suburban Rural
Purchase Rent
Ne
xt
Ho
me
& C
om
mu
nity
Source: The Demand Institute Housing Survey (2013)
May 11–13, 2015 \ Turnberry Isle \ Miami
MODERN AMENITY SEEKERS
45% 43% 12%
48% 52%
• Diverse, walkable neighborhood
• Community & social spaces
• Newer features & home automation
24% of Millennials
Average likelihood to be
married and have kids
Most diverse
Most affluentUrban Suburban Rural
Purchase Rent
Source: The Demand Institute Housing Survey (2013)N
ext
Ho
me
& C
om
mu
nity
May 11–13, 2015 \ Turnberry Isle \ Miami
WHITE PICKET FENCES
26% 50% 24%
81% 19%
• Single-family home where they can settle
• Wants more space & nicer finishes
• Good schools and safe neighborhood
18% of Millennials
Most likely to be
married with kids
Least diverse
More affluentUrban Suburban Rural
Purchase Rent
Source: The Demand Institute Housing Survey (2013)N
ext
Ho
me
& C
om
mu
nity
R E S P O N S I V E H O M EA h o u s e t h a t l e a r n s i s a h o m e t h a t l i v e s
URBAN EXPERIENCES IN SUBURBAN SETTINGS
22%
30%
39%
32%
39%
29%
34%
33%
37%
25%
30%
25%
38%
33%
43%
41%
45%
43%
Place of worship
Community features
Retail stores
Entertainment options
Place of employment
Schools
Family/friends
Grocery stores
Parks
Somewhat appealing (4) Very Appealing (5)
Fast Facts• 1,500 acres, 8,500 homes, 1,500-4,500sf, $200s-$400s
• 85 acres of parks, open space, trails
IMPORTANCE OF HOME FEATURES
26%
35%
32%
30%
37%
42%
35%
44%
38%
39%
42%
41%
37%
22%
24%
27%
32%
29%
24%
34%
27%
36%
37%
34%
36%
50%
Smart home technology
Traditional character and charm
Modern design
Environmentally-friendly features
Indoor/outdoor living
Desired curb-appeal
An open plan
Ability to be customized
Great kitchen finishes/design
Abundance of natural light
Low maintenance
Ample storage
High quality construction
Somewhat Important (4) Very Important (5)
CONTEMPORARY FARMHOUSE
$320,000 price $75k income 5% down $1,950 payment
2,100sf, alley-loaded garage, 37’w x 68’d footprint
CONTEMPORARY TRANSITIONAL
3,000sf, front-loaded garage, 76’w x 76’d footprint
$450,000 price $95k income $7% down $2,670 payment
REASONS TO PURCHASE
35%
26%
40%
28%
33%
39%
41%
35%
26%
38%
34%
47%
51%
45%
43%
51%
Desire to be part of a community
Desire to live in a new neighborhood
Emotional readiness
Tired of renting
Need more living space
Financial readiness
Desire to build personal financial equity
Desire to have outdoor space
Somewhat Important (4) Very Important (5)
IMPORTANCE OF HOME FEATURES
HOME FEATURE MUST-HAVES
27%
31%
28%
26%
23%
16%
6%
4%
47%
42%
43%
40%
39%
43%
41%
37%
27%
27%
30%
34%
39%
41%
53%
59%
Separate office space
Gaming/entertaiment area
Finished basement
Separate living suite
Children's play space
2-car attached garage
Open kitchen
Outdoor living space
Not Important Important, but can Compromise Must-have
IMPORTANCE OF HOME FEATURES
PERSONALIZATION IS KEY
“Owning a home is a personal statement. It shows off the style and
personality you have as a person.”
“I don’t want to spend money on something that doesn’t feel like it’s mine.”
PERSONALIZATION IS KEY
35%
43%
21%
What percentage of your home purchase budget are you willing to spend on
renovations/customization?
10% or less 11-25% 26% or more
71% find the ability for a
new home to be customized
very or somewhat important
On average, Millennial
homebuyers plan to spend
22% of their total budget on
customization
FLEXIBILITY IS KEY
ATTAINABILITY & FLEXIBILITY
62%
61%
61%
13%
14%
14%
25%
25%
25%
One Room Part Time
One Room Full-Time
Entire Home Part-Time
How Likely Are You To Rent Out…
Unlikely (1/2) Neutral (3) Likely (4/5)
35%Likely to rent out at
least one space
HOME AS INCOME
Studio over garage Separate living suite at 3rd garage bay
INDUSTRY CALL TO ACTION
1. Urban experiences in suburban settings
2. Create customizable, attainable homes
3. Flexibility for future living and budget
4. Highlight indoor-outdoor living
5. Offer separate living suites
6. Share Millennial homeowner success stories
7. Provide expertise for first time buyers
Millennial Homeowners:Kitchen & Laundry Insights
U.S. Yankelovich MONITOR 2014
GOOD NEWS: HOMEOWNERSHIP IS VIEWED POSITIVELY
80%
74%
40%
Millennial homeowners: Owning a
home is one of my proudest
accomplishments
Millennial non-owners: Owning a
home is still an important goal in
my life
Millennials: Plan to purchase their
first/next home within the next 5
years
36
U.S. Yankelovich
THEIR HOME DELIVERS CONNECTION, SATISFACTION
45%
40%
44%
44%
34%
30%
20%
44%
27%
42%
35%
36%
19%
23%
Cook
Work in…
Organize…
Do little…
DIY…
Garden
Host…
What they do in spare time for fun/enjoyment
Total Millennials
Cook
Work in the yard
Organize your home
Do little things to change
the look of home
DIY Projects
Garden
Host parties or get-
togethers at your home
37U.S. Yankelovich MONITOR 2014
HOWEVER, THEY ARE NOT SATISFIED WITH
CURRENT KITCHENS & APPLIANCES
Millennials are significantly LESS
satisfied than adults overall with their
kitchen’s…
Millennial Kitchens
Dishwasher
Oven/Stove/Cooktop
Refrigerator
Cabinets
by 11 %
by 7 %
by 6%
by 5%
RICKI, Generation Study, 2011
They style of kitchen they want…
POSITIVE ATTITUDES TOWARDS APPLIANCES &
HOUSEHOLD CHORES
• Cooking is enjoyed as a rewarding activity and social
connector
• Doing the dishes and laundry is perceived as a time
consuming chore
• Laundry is an important chore, because they care about the
way their cloths look and smell
• Willing to pay a premium for something fashionable and
cutting edge
•They want appliances to make them more efficient through
the latest technology
OUR APPROACH: PRODUCTS MUST ANSWER FOR THEIR
FOUR BASIC NEEDS TO LIVE LIFE TO THE FULLEST
Millennials know that they need to take care of themselves and live generally healthy lifestyles, so they make a conscious effort to care for both their physical and mental health. Not only is this important to their overall well-being, but it will allow them to keep doing the things they love.
What products or services can we offer to make it easier for them to stay active and healthy?
Millennials want to be better at managing their time. They believe that both their professional and personal lives are critical to their overall happiness, so it’s really important for them to find a way to devote the right amount of time to each, without sacrificing.
How can we help Millennials make the most of their time?
Tech is integrated into almost every aspect of Millennials' lives. It is an incredible tool for communication, a valuable resource for knowledge, and they couldn't live without it when it comes to accomplishing the things they need to do. Although they are dependent on it, they try not to rely on it too much because it can quickly become overwhelming, distracting, and even a little scary.
How can we leverage technology without all the drawbacks?
Lextant Millennial Project, 2012
Millennials don’t want to have
to worry about having enough
money. They don’t need to be
rich; they just want to make
sure that they have enough to
secure their financial future
and still do all the things they
love to do today.
How can we help the
Millennial customer feel
like they are making
smart decisions?
May 11–13, 2015 \ Turnberry Isle \ Miami
THE MILLENNIAL SESSION
Appendix
May 2015
46
What’s inside …
Quick Facts: Millennials .............................................................................. 2
Home Buying/Home Ownership .................................................................. 3
Misconceptions/Stereotypes: Myth Busters ............................................... 13
Lifestyles/Values/Priorities ........................................................................ 15
Brand Expectations ................................................................................... 21
Appliance Perceptions .............................................................................. 25
Project Team ............................................................................................ 28
47
Quick Facts: MillennialsBIRTH YEARS
CURRENT AGE
INFLUENCESDEFINING CHARACTERISTICS
1981-199718-34 75 million
KEY EVENTS: Digital Media, child focused
world, school shootings, terrorist attacks, AIDS,
9/11 terrorist attacks
• Typically grew up children of divorce
• Hope to be the next great generation & to turn around
all the “wrong” they see in the world today
• Grew up more sheltered than any other generation,
parents protected them from evils of the world
• Came of age during economic expansion
• Kept busy as kids -- 1st generation of children
w/schedules
MILLENNIALS
• Ambitious but not entirely
focused
• Attached to their gadgets
& parents
• Best educated
• Confident
• Diversity focused
• Eager to spend money
• Fiercely Independent
• Focus is children/family
• Global way of thinking
• High speed stimulus
junkies
• Individualistic yet group
• Invited as children to
play a lead role in
family’s purchasing
and travel decisions
• Sociable
• Scheduled lives
• Self–absorbed
• Strong sense of
entitlement
• Techno Savvy –
Digital generation
• Hope to make life
contributions to world
• Very patriotic
OTHER NAMES
Generation Y / Gen Y
Generation Next
Echo Boomers
Chief Friendship Officers
24/7’s
SIZE
48
49
Fewer young people owning
homes
50
Homeownership:1Q 2015 shows
declines among all age groupsLargest decline among those under 35
Census Bureau, April 2015
Millennials: Financial Obstacles
Forbes; U.S. Yankelovich MONITOR 2014
−
70%
60%
43%
More than 70% of students
graduate with loans; student
loan debt totals $1.2 trillion
Millennials: Being debt-free
is a sign of success and
accomplishment
Millennials: Feel very/fairly
worried about getting out of
debt51
Delayed Family Formation
20.322.822.0
24.725.126.826.6
29.0
Women Men
Median age at first marriage
1960 1980 2000 2013
65%
48%
36%
26%
Mature (1960)
Boomer (1980)
Gen X (1997)
Millennial (2013)
% married at age 18–32
U.S. Census Bureau; Pew Research Center; Centers for Disease Control
Mean age at first child:
1980: 22.7
2012: 25.8
First births among women 35-39 and 40-44,
especially single women, continue to rise.
−
52
Pew Research Center analysis of U.S. Census Bureau data
32%
56%
31%
43%
32%
27%
36%
23%
1968 1981 2007 2012
LIVING AT HOME MARRIED ROOMMATES / LIVING ALONE
13%26%
41% 42%
More 18-31s are living alone or
with roommates−
53
However, homeownership viewed
positively
80%
74%
40%
Millennial homeowners:
Owning a home is one of my
proudest accomplishments
Millennial non-owners:
Owning a home is still an
important goal in my life
Millennials: Plan to purchase
their first/next home within
the next 5 years
+
U.S. Yankelovich MONITOR 2014
+
54
Millennial Drivers: Home delivers
connection, satisfaction
U.S. Yankelovich MONITOR 2014
45%
40%
44%
44%
34%
30%
20%
44%
27%
42%
35%
36%
19%
23%
Cook
Work in…
Organize…
Do little…
DIY…
Garden
Host…
Do in spare time for fun/enjoyment
Total Millennials
+
Cook
Work in the yard
Organize your
home
Do little things to
change the look
of your home
DIY Projects
Garden
Host parties or
get-togethers at
55
NAHB, 2015
Millennial Home Preferences
56
Millennials and Housing: The Future
Opportunities and ChallengesTHE FUTURE: Late starts for Millennials
OPPORTUNITIES:
• New ways of lifestyle experimentation
• New reflections of home, self, success
CHALLENGES:
• Truncated timeline
• Reset milestones for marketing57
58
59
U.S. Millennials view themselves
more positively than Non-
Millennials do
Boston Consulting Group, The Millennial Consumer-Debunking Stereotypes, April 2012
60
What’s
Changing
Shifting dynamics
businesses and
brands must
understand and
address in reaching
MillennialsTraditional
Linear
Lifestage
Trajectory
Possible
Millennial
Trajectories
Shifting Life-Stage and Lifestyle Trajectories
Futures Company, 2013
61
Millennials: Value List
‘Success’ is tied into
‘Happiness’ and ‘Fulfillment’
instead of
‘Money’ or ‘Power’
as it was in past generations.
62
Life’s Goals and
Priorities
63
Pew Research, 2010
64
Lextant Millennial Project, 2012
Millennials four basic needs to live life
to the fullest
Millennials don’t want to
have to worry about
having enough money.
They don’t need to be
rich; they just want to
make sure that they have
enough to secure their
financial future and still do
all the things they love to
do today.
How can Whirlpool
help the Millennial
customer feel like they
are making smart
decisions?65
Millennials know that they need to take care of themselves and live generally healthy lifestyles, so they make a conscious effort to care for both their physical and mental health. Not only is this important to their overall well-being, but it will allow them to keep doing the things they love.
What products or services can Whirlpool offer to make it easier for the Millennial consumer stay active
Millennials want to be better at managing their time. They believe that both their professional and personal lives are critical to their overall happiness, so it’s really important for them to find a way to devote the right amount of time to each, without sacrificing.
How can Whirlpool help Millennials make the most of their time?
Tech is integrated into almost every aspect of Millennials' lives. It is an incredible tool for communication, a valuable resource for knowledge, and they couldn't live without it when it comes to accomplishing the things they need to do. Although they are dependent on it, they try not to rely on it too much because it can quickly become overwhelming, distracting, and even a little scary.
How can Whirlpool leverage technology
Lextant Millennial Project, 2012
66
Millennials’ Top-Rated Brand
Attributes
67
Initiative Study, 2014
Brand Engagement Attitudes‘Reciprocal-marketing ecosystem’ needed for Millennials
68
Five ways Millennials are Re-
defining the Customer
Experience
69
• Don’t care how, I want it NOW!
• “Meet me where I am.” Love, The Everywhere
Customer
• When social calls, you better answer
• No… I’ll do it!
• Prove that you really know me
70
Kitchen and Appliance Satisfaction
71
Millennials are significantly LESS
satisfied than adults overall with their
kitchen’s…
Millennial Kitchens
Dishwasher
Oven/Stove/Cooktop
Refrigerator
Cabinets
by 11 %
by 7 %
by 6%
by 5%
RICKI, Generation Study, 2011
Project Team
SMITH-DAHMER
116 State Street
Saint Joseph, MI 49085
269.983.4748 phone
www.smithdahmer.com
Amy Crooks
Laura Petee-Chriscinske
Jeanne Query
72
