Rose Quint is NAHB Assistant Vice President for Survey Research. Quint holds a B.S. in Economics/International Business as well as a master’s degree in Economics. Her responsibilities include planning and conducting industry surveys, specifically in the areas of builder sentiment, remodeling, housing affordability, and AD&C financing issues. Quint is also responsible for special research projects, such as studies on builders’ profitability, consumer preferences, construction costs, and membership census.
Episode Notes:
Narrator  This is The Norris Group’s real estate investor radio show the award-winning show dedicated to thought leaders shaping the real estate industry and local experts revealing their insider tips to succeed in an ever -changing real estate market hosted by author, investor and hard money lender, Bruce Norris.
Aaron Norris  Everybody it’s Aaron Norris with the Norris Group. Today we have Rose Quint of the National Association of Homebuilders. She is the Assistant Vice President for Survey Research. And she holds a BS in Economics and International Business, as well as a Master’s Degree in Economics. And she’s just been with NAHB for almost 20 years. Her responsibilities include planning and conducting industry surveys, specifically around the builder area, builder sentiment, remodeling, and housing affordability. Just wait to hear some of what’s happened because of COVID. Let’s get to it. Welcome, Rose. We’re glad to have you back. It’s nice to have you.
Rose Quint  Thank you, Aaron. It’s nice being back.
Aaron Norris  So, the International Builders show was I think last week, but we’re recording this, how was it?
Rose Quint  It was a smashing success. There’s no other way to put it. We had 70,000 people show up.
Aaron Norris  Wow!
Rose Quint  And if you were there or any of your listeners that were there, there was a palpable energy in the air, you could touch it. People were so happy, so eager to learn to participate, to go to education sessions to listen to the exhibitors, if there was an energy in the area was electric. That’s how I best can put it, it was just an electric time for three days.
Aaron Norris  I was super sad, I could not go we’re preparing for a trip to Florida. That’s the build-to-rent. But your presentations are always one of my most favorite because our audience is, always real estate investors who are rehabbing houses and upgrading their stock. And it’s always good to know what trends are happening in the new construction. But they’re also doing more build-to-rent these days in different markets nationwide. So, really good stuff. But for those who are not familiar, familiar with the International builder show, let’s just talk about it real quick. And if anybody can go for next year.
Rose Quint  Yeah, perfect. So, it is going to be let me see if I get the date right. I think it’s January 31.
Aaron Norris  Oh, okay. It’s early.
Rose Quint Yes. So, it’s actually the starts the last day of January, it’s in Las Vegas at the convention center. And it’s going to be the, the biggest and the best ever. If this year has anything to do with any kind of predictor for next year, it’s going to be a giant show. And they just announced that in addition to the kitchen and bath industry, which is has been co located with the IBS for a few years now. For next year we’re also co locating with the hardware, hardware show.
Aaron Norris  Oh.
Rose Quint  Even more exhibitors will be there available for it will just be massive, just prepare to walk endlessly for three days.
Aaron Norris  And I’ve been there several times as media when I wrote for Forbes, covering technology and items there at the show. And then if you’ve never been I mean, the last stage center is a huge, convention center. And you’re being able to walk through the kitchen and bath alone, it takes a day. So, you have a lot of builders show up making deals with different vendors. I’m getting to see the latest and greatest technology by some of the manufacturers. I was particularly there, the last time I was there really interested in Moen their version of flow, some of the automation that was coming up that would impact prices of insurance, if people remember, I was really interested in that for a little bit. But was there any good?
Rose Quint  I was gonna say it’s overall, it’s around 500,000 square feet.
Aaron Norris  Yeah.
Rose Quint  That’s covered that you have to walk if you really want to get your money’s worth. And this year, they and they have started it. I don’t know that it was this year, but it was there this year I saw it, there’s a new product zone, which is really fantastic. Use, you go to it and it’s surrounded, he has like this barriers that make it very clear that you’re in the new product zone that just shows you stuff that’s brand new, that just got invented, that just got accepted, you know, got a patent or just got launched in the market. And it’s really neat stuff. I’m not a builder. Okay, I’m an economist, but I even, I find it neat.
Aaron Norris Was there anything that stood out to you is really interesting that you really loved.
Rose Quint  Yeah, there was one thing, don’t ask me what it was called because I don’t remember. But it was, it was this tool that allowed you to put nails into wood without having to kneel down so you could it was like a long piece of metal with the little nails attached to the bottom and and you know, some kind of mechanism that you could just shoot it from, you know, while standing up.
Aaron Norris  Like a nail gun.
Rose Quint  But you don’t have to kneel down. So, I mean, I don’t do that for a living. But that has to be a cost plus if you, if you don’t no longer have to kneel down to do your nails.
Aaron Norris  I agree. So, if you’ve never been I would highly recommend checking it out. They have seminars too. There’s sort of like a floor where you get to see stuff but they also have education going on and different opportunities to network with people around the country. There is a Remodeling section of the conference. So, really interesting, you’ll have to check that out. So, wanted to cover that really quick. Let’s, let’s get into your presentation because it covers three different, covers data from the Census, the NH, the National Association of Homebuilders builder survey and then the preference survey is really aimed more at the consumer what they’re wanting, which is always interesting to me, because it doesn’t always translate to what’s actually being built. So, it’s sort of forward looking at what they’re wanting, and probably will end up on the desk of the builders. But let’s start at the US Census, it was really interesting to see that home size, once again, is up year over year. And the last time we’ve seen these sizes of homes was before the downturn. So, is this a predictor of we’re gonna have a downturn homes are getting McMansion sized or what’s going on?
Rose Quint  Now, builders are adjusting builders are doing what they do, they’re adjusting to the demands of the marketplace, they’re adjusting to the demands of their buyers. So, if I can take you back to after the Great Recession, so ’08 or nine, the size and the amenities in homes, you know, they sank real low after the Great, the great recession. And then for a number of years, the homes got bigger, roughly between 2010 and 2015. The homes got thicker they got there, it was more likely that they came with four more bedrooms or three or more full bathrooms. And that was during the period of time when underwriting was really tight. If you remember those days, tied in then only people that had super fantastic fabulous credit history and employment history could even get a loan. And so the houses that got built during that period, reflected the type of buyers that were standing in the game.
Aaron Norris  Yep.
Rose Quint  That sort of peaked in 2015. And then underwriting, underwriting became a lot more reasonable for home buyers re-enter the market, younger buyers re-enter the market, and for a number of years from like 2016 to 2020, we sold all those trends reverse, and the average size began to come down, it was less likely that they had you know, giant number of bedrooms or bathrooms or a garage for three cars or more, those characteristics declined for a period of about four or five years. And then yes, then 2020 came COVID arrived in all of our lives. The world ended as we knew it, and builders had to adapt quickly to the demands of their marketplace.
Aaron Norris  Home is now where we live, work, play educate. Yeah, it….
Rose Quint  …will change everything, how we exercise, how we work, how we study, how we pray, how we socialize, everything, everything was changed, and how we exercise definitely. And so, so yes. So, there is now a new pivot point, that we see it in the data from the Census Bureau from 2021. Where we see again, sites rising again, so it bottomed out. In 2020. We see the average size of new homes in 21, rising to a little over 2500 square feet again. And also you know they share new homes with all those amenities. Four more bedrooms, three plus four bathrooms, all those things rising again. Again, why? Because builders are responding. They’re, they’re adapting and they’re responding to the preferences brought about by COVID-19. In very general terms, what are those? People want more square footage, for the reasons you just mentioned? Right Aaron. We want to do, the home, we just need to function differently in the home. We want more out of the home.
Aaron Norris  Yeah, it was interesting to see the patio has consistently been rising since 2010. So, I’m assuming when they say patio, that means outdoor living space in the backyard, or doesn’t matter.
Rose Quint  It could be on the side of the house, too.
Aaron Norris  Okay.
Rose Quint  Yeah, it could be on the side, you just have to have a concrete or you know, a solid surface outside of the house. And it’s been rising for over a decade. Yeah. So then desirability for patio is not new.
Aaron Norris  Very cool.
Rose Quint  COVID did not come in and invent the popularity of patio, but he certainly accelerated. Because I’ll tell you why. Buyers now more than ever, really, really, really want to spend time outdoors in the safety and the privacy of their own homes. And a patio is just perfect to do that.
Aaron Norris  No, I totally understand. So, it’s really great that the, I, you know, I didn’t know until I started looking at your report that the US census was the ones collecting that data as well. I thought it was the NAHB so is good. We’ve got some history on it. So, it’s very interesting to follow. So, good. Okay, we’ve got more…
Rose Quint  I don’t like it though.
Aaron Norris  The what?
Rose Quint  I don’t like it though.
Aaron Norris  All right. Well, let’s jump into the Builder Survey this is work that you guys have actually done. And can we talk about how many people take this and what the goal of the survey is?
Rose Quint  So, yeah, so we keep on your listeners may have heard of this NAHB conduct a monthly survey of single family builders across the country called the Housing Market Index, the NAHB WellsFargo housing market index to be completely correct. And that survey produces what’s the best indicator of the housing market in available out there called the HMI in which builders tell us how they feel their sentiment about the home sells. And that number has a very good correlation with housing starts. So, it’s a very popular number of analysts and government regulators, etc. But anyway, in that same survey every month, we include a set of questions that deal with something that’s very a very hot topic for the industry, something that we really need an answer for that only we have access to builders and therefore can find it. And so a lot of, a lot of people try to turn to us, we’re interested in finding out information about the homebuilding industry. And we do it for certain purposes, sometimes that deal with research that I present that ideas. So, for example, late every year, I asked builders across the country about the feature there, the feature they’re most likely to include, in the typical home, they build that that next year, that year starting. So we excuse me, we did that for 2022. And I have a list, the most likely features of builders will include and that’s the, that’s the operative word here, they will include it in the typical home they build. So these are not options. These are things that they will include in the typical home they built this year. We give them a scale, why not? Not likely that I will include it five very likely. So the highest, the higher the average trading, the more likely. So at the very top, you have a walking closet in the primary bedroom, for example, very, you can almost be guaranteed sure that that’s happening in the typical home this year. Similarly, a laundry room, very, very likely. And a great room. Those are the top three most likely features coming to the typical home this year. How do you like those?
Aaron Norris  I was really surprised to see very high up on the list this year, it seemed like more energy efficiency, whether it was windows or energy star appliances, more automation, low water things, a lot of different efficiency things made the list are buyers really caring about that.
Rose Quint  Yes, yes. So builders understand that the typical buyer is looking for a house that is green, and green, in a sense. And for buyers. Let me let me explain that for buyers. That means an energy efficient health. That’s what green means to homebuyers is the energy efficient health. And so they will include it from the server, we know that the typical home in 2022 will have lowly windows, for example. And it will have ENERGY STAR windows and Energy Star appliances. And it will use efficient lighting. Those are all things that use less energy than your traditional walls. So yes, and water conserving toilets, as you mentioned. So yes, the builders, again, are reacting to the demands of their buyers.
Aaron Norris  I remember a couple years ago, I can’t remember if you were the ones that said it in the presentation, but that the buyers were willing to pay a little bit more because of the energy efficiency features, maybe builders were getting a little bit better at communicating this home will actually save you money over the long term because of the technology included at this point is that just an expectation that these things are coming in new construction. For some
Rose Quint  of them guests as you can, as I just went over this list, some of the things will just come included in the price of the home, the buyers will not have to pay optional money to include some of these features. Some of them will remain optional. But the basic ones that we just went over those are just part of the house now. And when you ask when you ask buyers about Well, would you and this is an interesting way of asking we do that in our buyer surveys. We asked buyers if you could save 1000 bucks a year. Okay, in utility costs, how much extra would you pay upfront for the house? Okay, and so the last time we asked this, the average was around $1,000. Wow. Okay, so yeah, so buyers are willing to put in a little bit of extra money in for payback, right, it will pay back. The investment will pay itself over time.
Aaron Norris  And investors who are renovating homes, please check with your local utility a lot of the times they are willing to extend rebates for you on things that you’re installing. It just depends on the money that they have and their goals. How much of this is driven by the consumer and how much of this is driven by state and code around new building like in California at this point, new construction has to have solar
Rose Quint 14:58
Correct? Correct. So some of it in some states it’s a lot of it is driven by code. In some states, it’s, you know, also buyers, but there are there are differences in closer differences in buyers, right, your buyers in California that expect more green features and your buyers in other states. That’s for sure.
Aaron Norris  That’s true. Is there anything on the list that surprised you? More than it’s appeared for the first time that was spreading?
Rose Quint  Ah, no, I think I think this list is very reasonable because it reflects homebuyer preferences.
Aaron Norris  Okay, I love that you guys also had a slide on COVID-19. What causes an increase in demand? And what happened to builders and buyers are looking at? Can we talk about that a
Rose Quint  little bit? Yeah, that was an interesting survey, because we’re getting lots of questions from from people like yourself, or what’s happening, what are builders feeling? are they what are they noticing, because of COVID-19. So we asked, we said, have you noticed a significant increase in demand for any of these features? Because directly because of COVID-19?
Aaron Norris  So great. Yeah, yeah, I was gonna ask, let’s talk about some of the major ones that showed up. That was a major increase in demand for sure.
Rose Quint  Yeah. So at the top, and I’m sure this is not a surprise to any of your listeners. It’s a home office 80% of builders across the country say that they have seen they have noticed is significant, actually was to a major extent or to a minor extent combined. 80% of them have seen an increase in demand for home offices. isn’t hard to explain, obviously not. Excuse me. Most people want to have a home office, did they right? Whether you’re a boomer or a millennial, or Gen X, or this is where this is where my mom is a boomer, she talks to my kids, right there even even boomers, even grandparents need to have one to have a little space where they can have those uncles.
Aaron Norris  Yep. And then the next three that were all over 60% homes built in suburbs, exterior amenities, like porches and patios, and then homes built in outlying rural areas, I thought the suburbs in the rural areas, both over 60% is is pretty interesting. So people want more space.
Rose Quint  Absolutely people, they location, delta here because of COVID is very significant. We saw it very much at the beginning, it has slowed down a little bit, but it’s still going on very much. At the beginning of this pandemic, people wanted to just flee the cities and get away from the inner suburbs and go to places where they could have the yard and the patio, and the privacy of their own backyard. So So that’s definitely something that’s happening. And builders are responding. They’re building more and more homes out in the suburban areas. And, and also remember, part of this is driven by the fact that people now can work remotely. Yeah. So when you’re not tethered to your office anymore, and you can be 50 miles away from the city center. You can buy anywhere you want.
Aaron Norris  It’s true, we build in southwest Florida. And I just we just finished we have a 200 page book that we create for people that come out. And I, to be honest with you, I was little uncomfortable. We have prices increased 40%. In one year, rents went up substantially and pulling the data owner occupancy rates in several markets actually increased. So when you look at the IRS data, I’ll get it probably in may sometime updated. But even last year, a lot of people are coming from the Northeast, and they’re looking at the prices down in Florida and laughing because like I’m used to paying, you know, three to $5,000 a month in rent. And now I can have a four bedroom two bath house. Oh my gosh, it’s it’s really interesting to see, depending on what market you’re in. So I love this stuff. So good. One question. I’m not what is structured wiring me technology supporting features that was like over 50% And I’m not familiar with structured wiring what that means.
Rose Quint  Um, my understanding is that it’s stuff that you put behind the wall in order to make it even more in order not to rely on Wi Fi because a lot of people want to have direct connections.
Aaron Norris  Okay, like cat five kind of got it, right.
Rose Quint  They want to have direct connection for you know, for this popular zoom meetings do not fare. Sometimes if you’re in the third floor of a very tall house and the routers at the very bottom, then the Wi Fi will have problems that has happened in my own house. I know that for a fact. So I am connected hardwired to my router. This calls will never fail on my end.
Aaron Norris  Yep, no, I totally hear you. Well, let’s switch to the consumer hat in let’s talk about the consumer survey that you do how many consumers take it and how often did the HP do it?
Rose Quint  We try to do it as often as possible is an absolutely expensive project to take on. It’s very expensive to buy access to households. So over 3500 consumers this will people who have bought a home in the prior three years, or were planning seriously planning to buy one in the next three years. And what I did this year is I, because I get lots of questions about millennials and what they want versus the other generation. Yeah, I produce data this year by according to three generations, millennials, Gen Xers and baby boomers. So if you attended my education sessions, you could see the similarities and the dissimilarities among those three cohorts.
Aaron Norris  Yeah, this is such juicy, valuable information. And depending on what you’re creating, whether you’re doing a rehab or building new construction, if you know, the market that you’re targeting, there are some differences, which is really good. And I do want to point out that you can buy the the full report, where would they would go to buy that?
Rose Quint  Yes, that is available on? Oh, you got me there. The website is called builder box builder. books.com.
Aaron Norris  Okay, I bought it.
Rose Quint  You got me there for a minute builder book calm? And it’s called what homebuyers really want?
Aaron Norris  Yeah, and you know, it’s, it’s an easy read. And it’s really important to stay on top of this stuff. And we want to support this kind of work, because it’s so valuable to be able to dig down to the generations to see, you know, what the trends are. So let’s, let’s talk first about COVID. And the different generations. Is there anything that is this the first time by the way that you’ve you delve down into the generations
Rose Quint  available in prior editions of the study, but I don’t know that I had ever shone a light on it, as I’m doing this year. Okay, got it. There’s so much juice, like you said, there’s so much juicy data in there are so many breakdowns by price point and race and generation and region of the country, you could spend months going through the various demographic breakdowns, because the aim of the study is not just to tell builders, architects, designers, analysts, like yourself, you know, what the average home buyer wants, but also how specific niche market niche targets? Audiences what they want in the home. So what Millennials one what people over 55? One, what you know, Hispanics want or what people buying homes over $500,000. So all that juicy detail is available in there.
Aaron Norris  So fun. Well, let’s start with with larger homes, I think, you know, we took almost a decade off of building when I look at the data and the build data across the last decade in the market that we’re at. I mean, it’s we’re still not back up to where we were, before the Great Recession. We’ve got Millennials entering the market. So one of the things I get asked a lot is, are we going to have a crash and like, well, one of the things that’s not happening is the builder is really building a suit. Now they’re not building a lot of communities and then releasing them. They only build when people show up and say exactly what they want, which is way smarter. If there was even a little bit of a downturn, they’re not sitting on a bunch of inventory and burying the people that purchased at full price. That’s a huge change. And you know, looking at what the millennials and the different generations want, it’s it’s so different. So let’s, let’s talk a little bit about that. Size. I don’t think this is really unusual. Millennials want a little bit larger compared to boomers. Does that surprise you at all?
Rose Quint  This is your present at all? I think we should before we discuss their similarities there. Let me let me just start by explaining something that a lot of people don’t understand or don’t know. And that’s the fact the millennials now comprise the largest generational cohort of homebuyers out
Aaron Norris  there that are no longer wanting to stay on their parents couch. Yes, they
Rose Quint  have now decided it’s time to evolve. And so 37% of homebuyers currently are millennials. Order are Gen Xers and 32%. Around that are boomers. So about five years ago, the millennials passed the boomers in terms of their proportion of the market. And so that’s hence our need to really pay attention to what they want and where they’re going with this. So you’re asking about average size? So yes, so but let me tell you this. Before we get there, we asked the three different groups of buyers, if they had been if their preferences for their house would they want has been impacted by COVID-19? Because we want to understand which one was more vulnerable to to the changes coming from the pandemic and over 30% of the younger two groups, that is millennials and Gen X buyers say yes, my housing preferences shifted because of COVID-19 change. Yeah, that’s a huge chunk over a third compared to only 18% of boomers. So if you’re building for boomers know that they’re pretty much the same as before COVID When it comes to housing preferences, I mean, not many, not very many change what they want or how they wanted because of this pandemic. If your target is younger people they want different things, the likelihood that they want different things is pretty hard. Okay, so in terms of how much space they want, the younger two groups want around 2300 square feet. That’s a median. For millennials and Gen X buyers. You compare that two boomers, they want about 20% less space around 1800 square feet.
Aaron Norris  Okay, okay. Yeah, that’s no surprise there. I remember listening to John Burns. And they talked about the concept of jewel box in that square footage, are they expecting a higher level of amenity?
Rose Quint  Boomers, boomers are very much interested in if you look at the top 10 Most Wanted features among boomers, which is also in the study, you’ll see that there’s a lot of energy efficiency in the top 10. Most Wanted for that particular group, it doesn’t mean it’s not important for the other two there. There are just other things that make it to the top 10 For the younger two groups. But if you look at the top 10 Most Wanted for boomers, there’s a lot of energy efficiency. And I attribute that to the fact that they’ve owned a home in the past in all likelihood, and understand the cost of heating and cooling your home.
Aaron Norris  And hey, I’m going to be traveling moving to cruises, I don’t need to, you know, waste money on energy I want to drink on a cruise ship. Alright, and one of the things that was interesting as your site is prepared to accept to achieve affordability. So COVID is in remote work, of course is going to pack millennials and Gen X and Boomers might not care as much. But does any of this surprise you the mobility and their willingness to go outside for the first time in rural markets?
Rose Quint  Yeah, no, this is a really important question, especially as we, as we know that housing affordability is going to continue to be challenged in 2022. And ahead and beyond. because interest rates are going to rise and home prices are not we’re not expecting them to grow as much as they did in the last couple of years. But they will continue to grow. That’s our forecast. So yes, housing, housing affordability will remain a challenge in the future. And so we want to understand what buyers are willing to do to accept in order to be able to make the numbers work out, right, because we all have budgets. I mean, most of us have budget, right? Yep. And so we from the research, we know that boomers are more likely than the younger two buyers to be willing to trade off space, both in the House and in the lot itself, in order to make the numbers work. And that’s not surprising, given what we just talked about. On the other hand, the younger groups are going to be more willing to travel farther. Right, they’re gonna be willing to have longer commutes move farther out, if that’s what’s going to make the numbers work. Interestingly, if you care to know what is the single most unlikely aspect that they’re willing to give up, is, in order to make them work, all of the generations is the same item is the qual high quality materials. That’s the one thing near nearly no one in any generation is willing to trade off in order to make the numbers work.
Aaron Norris  Yeah, nobody wants to buy a new home and then have to do renovation shortly thereafter, I can, they just want it done. It’s interesting. And since they’re building the suit more often than ever, they can select those going in and get exactly what they want, which is really, really smart. Um, rural, I mean, our builders really talking about the COVID, the ability to work from home being really sticky and companies just saying, Hey, this is the new normal to attract talent. This is this is going to be it.
Rose Quint  So builders follow their customers that have been saying that for years, they will build a house, obviously, where they can find the land and the labor, but they will do it where and how their customers want it. And so if the customers are saying this is how far I’m going to be willing to be from the office, or how far they’re letting me stay away from the office. builders will stay there and that’s where they’ll put their homes. However, not everybody is willing to go there. As far as a rural county, for example, there is a segment around 2020 to 24% of the younger two groups who are willing to live in the central city. Our study does show that that number is much smaller among boomers, so it’s about about 14% among the oldest group, but there is a niche there’s a group of millennials and Gen Xers who will live in the central city that the most of them go the suburbs that’s where they want to be.
Aaron Norris  know a lot of real estate investors are dealing with new competition from ibuyers and, and institutional who are raising a lot of money and it drives me That’s the way that the standard media covers eye buyers because they’re like, Oh, they’re only 2% of the entire market? Well, no, they’re not in every market yet. And they focus on a very specific category. And that that’s first time buyer price range. So when you dive down deeper in markets like Phoenix or the Inland Empire, in some parts of Florida, I’ve seen, it’s a much larger percentage, I and I was the one that reported to Bloomberg News that they were transferring off market ibuyers to these institutional, and nobody was talking about it, because it was all off the MLS. So we have new opportunities, though, as well with COVID as real estate investors to look at some of these tertiary markets, knowing that millennials are willing to drive if we have a good feature set. And if we, you know, give them the features that they want. So just good to know. Top 10 Most Wanted features by generation, this is so interesting to me that some of these things are just you unique and common across like laundry room across the board. Everybody wants a separate laundry room.
Rose Quint  Yes, I mean, some of the things make every bit of business sense for builders and architects and designers to just say, this has to be in every home, I build in every home I design, because you slept the data across any of the age groups and other generations they all wanted. So it makes perfect business sense in my mind to just get included a laundry room, a walk in pantry, patio, ceiling fans, and exterior lighting, those five features are wanted by over 80% of all age groups of all generations in this study. So let’s just assume that they’re going to be part of the of the homes that we build going forward because everybody wants them. So they’re common across the top, the top three list of top 10. But what’s also interesting, I think, is to look at what’s unique in the most wanted list of each one of the three groups. Absolutely. We just covered the few minutes ago, we just cover the uniqueness of the boomers left, which is all about energy efficiency. That’s that’s what’s in that top 10 list, if not in the younger two groups. Top 10
Aaron Norris  Oh, you’re right. Yeah, I’m looking at the chart now. That’s a great, interesting,
Rose Quint Aaron can ask a quick question. Sure. This is so maybe it’s me growing up in the Scooby Doo generation. But how come secret passages isn’t on my top list?
Rose Quint  I’ve only seen that one joy in
Aaron Norris  oh my gosh, my partner would be so excited if there was like a bookcase that open to a secret room and office. Are you kidding me? He would lose his mind.
Rose Quint  Yeah, Harry Potter. Okay.
Aaron Norris  Well, let’s talk about the uniqueness of features by generation, millennials tablespace for eating in the kitchen and a dining room.
Rose Quint  So more than likely, this generation has children. And if children have to be doing homework, they have to be looked at, they have to be paid attention to. And so this generation wants to have that space where they’re cooking and doing homework and eating and all of that at once in one in one combined space. So that makes a lot of sense. The unique thing about Gen X’s Gen Xers is their central kitchen island, you know at the IBS I don’t know if you notice that IBS walking through the exhibit floor. The islands are getting so rich, they’re getting rich. And so functional is no longer just a counterspace
Aaron Norris  Oh no, they’ve got storage underneath. It’s got different finishes. They’ve got the the waterfall HTV they’ve ruined everything.
Rose Quint  Oh, yeah. I mean, I, I had never seen this. Some of these islands have, my mother would absolutely die for one of these islands. They have sort of a small garden built into the middle or the sound of the island. So imagine, imagine carving a hole like a rectangular hole. It’s very symmetrical. Where they don’t know they put a pot in with soil and they and they plant their little flowers and plants right in the middle of your flat of your island. It was oh, it was all over IBS. Press me it was over
Aaron Norris  water. Water inside houses don’t mix for me.
Rose Quint  So So yeah, kitchen islands very, very big. And they’re going to they’re bigger and bigger every year. But anyway, yes, kitchen islands.
Aaron Norris  I know we’re running out of time, too. So let’s cut. Let’s talk about the most dissimilar preferences, making sure community features in particular good public schools. I think there’s no surprise there. Millennials want is really important. Where boomers don’t seem to care that much.
Rose Quint 34:40
Yeah, when we analyze old 200 Plus features in a survey across you know, they do not want category. By the three generations. It’s no surprise that it’s children that usually have the most effective cutting edge divergence in Preferences here. The most dissimilar about 200 Plus features is good public schools in the country. It’s something 67% of millennials one compared to only 27% of boomers.
Aaron Norris  I’m prefaces for select features impacted by COVID designated bike lanes, these port builders are having to create such a rich features.
Rose Quint  Yes, yes, absolutely. So we’ve seen three, I mean, some of the features that I’ve seen the most increase in popularity during COVID are designated bike lanes, and exercise room and home office, we already spoke about the home office. But when it comes to designated bike lanes, over 50% of millennials and Gen X are say that they would be very interested in having that in your community, along with 45% of boomers, so even they want to go out for a walk or dollar bike ride.
Aaron Norris  Very cool. I, I know we’re out of time. I mean, hopefully the rehabbers on this call, you realize that there’s data that exists that will help you build the right thing and rehab the right thing staged to houses correctly, to better target your product to what’s selling on the market. So I will leave links to all of where you can buy the report. And there’s a digital version. It’s super easy and cool to download. And I look forward to it every year. So I want to make sure that I’m building the right stuff for our target market because we build a three tail in mind. So I love this because it just gives me support knowing I’m buying I’m building the right thing. So if they’re looking to connect with you, is there any preference? How they can do so?
Rose Quint  I love that you love it. So that’s great. I’m happy. Definitely. Our point@hp.org is how you can find me. Happy to answer any any and all questions. Very cool.
Aaron Norris  I really appreciate your time and so nice to see you and have you back.
Rose Quint  Yeah, thanks, Aaron.
Narrator  For more information on hard money, loans and upcoming events with The Norris Group, check out thenorrisgroup.com. For information on passive investing with trust deeds, visit tngtrustdeeds.com.
Aaron Norris  The Norris Group originates and services loans in California and Florida under California DRE License 01219911, Florida Mortgage Lender License 1577, and NMLS License 1623669. For more information on hard money lending, go www.thenorrisgroup.com and click the Hard Money tab.