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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