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2014 Home Shopper Insights Study Proprietary Research

Table of Contents

Slide #

1. Background and Objectives 3

2. Methodology 5

3. Executive Summary 7

4. Detailed Findings 11

Changes over the past 12 months

Prospect segments

11

23

5. Builder awareness 67

6. Appendices 99

2

Background and Objectives

BHI, which represents 32 of the nation’s largest homebuilders, helps them collaborate to develop world class solutions to satisfy present and future industry needs

Looking to the future, BHI embarked on a mission in 2012 to create better awareness and consideration surrounding the advantages of the purchase of a new construction home

The initial wave was slated to provide BHI with an understanding of customer preferences and variations based on demographic, attitudinal, and behavioral dimensions throughout the United States

This updated wave of research, which is the third wave, will help BHI:

Understand changes in:

Home buying attitudes and behaviors

Consideration and preference for new construction homes

Awareness of various homebuilder brands

Measure awareness of and likelihood to recommend national and local real estate websites

3

2014 Survey Changes

Changes in Wave 3 (2014):

Removed Recently Purchased quota group

Removed Quality & Value deep dive

Added NewHomeSource Awareness deep dive

NOTE: Kept the 6 MSAs added in Wave 2 (2013):

Portland, OR

Sacramento, CA

Indianapolis, IN

Salt Lake City, UT

Columbus, OH

San Francisco/San Jose, CA

4

*Rating of at least 5 on a 0-10 scale where 0 means “Not at all likely” and 10 means “Extremely likely” and engage in at least one action toward this goal ^at least 3 or more times per week

Population

US general population

Age 25 or older

Household income of $50k or more

Residing within the top 31 MSAs

Likely to purchase a home within the next 12 months*

[CATEGORY NAME]

94% 6%

Actively Looking

3%

[CATEGORY NAME]

3%

Sample Breakdown (US population, Age 25+, HHI of $50k+)

Methodology

Those who rated their likelihood to purchase a home in the next 12 months at least an 8, or gave a rating of a 7 but have already taken at least one of the following actions: • Met, spoken with or hired a realtor • Sought pre-approval for a home loan • Visited a model home in a new home community • Visited an existing home with a realtor • Bid on a property • Attended a home buying seminar • Placed home on the market for sale

Those who rated their likelihood to purchase a 7, or gave a rating of 5 or 6, and have taken one of the above actions, or have: • Regularly looked at home listings online or in the paper • Visited a realtor and/or home builder website • Calculated living costs as a result of a new home purchase • Attended an open house • Watched a TV show about local homes and real estate for sale • Driven around neighborhoods looking for homes for sale

Wave 1 Wave 2 Wave 3

Completes 984 2,475 1,236

MSAs 25 31 31

Survey length 20 min 24 min 21 min

Collection dates

June 7 – 20, 2012

May 30 – June 20, 2013

May 29 – June 30, 2014

Data collected from online consumer panel

5

EXCLUDED FROM THE RESEARCH

This has remained consistent year-

over-year

Regions and MSAs

Texas: Houston, Sugar Land, Baytown, Dallas, Fort Worth, Arlington,

Austin, Round Rock, San Antonio

Georgia: Atlanta, Sandy

Springs, Marietta

Florida: Miami, Fort Lauderdale,

Pompano Beach, Tampa, St. Petersburg, Clearwater, Orlando,

Kissimmee, Jacksonville

California: Los Angeles, Long Beach, Santa Ana

Riverside, San Bernardino, Ontario,

Sacramento, San Francisco/San Jose

Nevada: Las Vegas, Paradise

Washington: Seattle, Tacoma,

Bellevue

Mid Atlantic: Tri-State Area: New York,

Northern New Jersey, Long Island, Pennsylvania:

Philadelphia, Camden, Wilmington,

Baltimore, Towson, Washington, Arlington, Alexandria

Colorado: Denver, Aurora

Tennessee: Nashville, Davidson, Murfreesboro, Franklin

Missouri: St. Louis

The Carolinas: Charlotte, Gastonia,

Concord, Raleigh, Cary

Arizona: Phoenix,

Mesa, Scottsdale

Illinois: Chicago, Naperville, Joliet

Minnesota/Wisconsin: Minneapolis, St.

Paul, Bloomington

South Central

South Atlantic

Pacific

Northeast

Mountain

North Central

Mid Atlantic

Oregon: Portland

Indiana: Indianapolis

Ohio: Columbus Utah:

Salt Lake City

6

Executive Summary:

Base: All, Prospects (Wave 1): 984, Prospects (Wave 2): 1,234, Prospects (Wave 3): 1,236 ● Q17: When looking for your new home, how strongly will you consider each of the following home choices? (Scale 0 to 10, 0=‘Will Not Consider’ while 10 = ‘Will Strongly Consider’) Q17: When looking for a new home, how strongly did you consider each of the following home choices?

Wave 1 Wave 2 Wave 3

Mean Consideration

Consideration Ratio*

Mean Consideration


Mean Consideration


Existing Home 8.3 1.00 8.4 1.00 8.3 1.00

Brand New Home Offered by Builder

6.7 .81 6.8 .81 7.0 .84

Custom Build on Own Lot

4.9 .59 5.0 .60 5.4 .65

Combined ‘New’ 5.8 .70 5.9 .71 6.2 .75

*Consideration Ratio Mean Consideration ‘X’

Mean Consideration “Existing” =

Prospects are more likely to consider new homes in their next purchase today than they were in the past two years, while consideration for an existing home has remained consistent

7

Executive Summary: How has the market changed?

After last year’s economic improvements shifted the profile of the typical prospective buyer, the profile has now shifted back to closer align with how prospects looked in 2012—slightly more educated, more affluent, and older

Compared to a year ago, fewer prospective buyers are buying a home for the first time (though more than in 2012), suggesting that many prospective buyers are now moving on from their starter home

As a result, more shoppers currently own their home (though fewer than in 2012), which are single family detached homes

These shifts explain changes in the buying process:

Though still a top trigger, favorable market conditions have declined dramatically, which is likely causing the dip in 1st time home buyers

Boredom with current home is now the top trigger for starting the purchase process

Despite continual changes in the landscape, most aspects of the process remain unchanged:

Family, financial investment, and privacy remain top goals of home ownership

Realtors continue to be critical in the process, making them a key partner for builders

Buyers expect to take their time in the decision-making process

National real estate websites continue to increase in usage and are the most trusted source for finding a home, while local websites and newspaper usage continues to decline

Though social media ranks last, its usage has increased year-over-year, and will likely play a larger role in the future

8

Executive Summary: How has the market changed? (cont’d)

Prospects’ interest in new homes has increased somewhat, which is a positive sign for builders

Quality of construction remains the most important in terms of consideration criteria for a new home purchase, while safer neighborhoods rank second and continue to increase in importance

Maintaining construction quality is an area for builders to watch, as the proportion of prospects rating new as better in terms of quality of construction is nearly equal to the proportion rating existing as better

‘Better floor plans’ round out the top three consideration criteria, and new homes outperform existing homes on this measure

Those who are indifferent to a new versus existing home rate new homes better for ‘better floor plans’ and ‘safer neighborhoods’—builders should highlight these attributes in messaging to convert these prospects from the Indifferent Segment to the New Segment

New homes are improving on convenience of location (close to family, friends, schools, work, and places of interest)—an attribute for which existing homes once outperformed—suggesting that new homes are currently being built in more favorable areas compared to the past two years

The ‘Existing Segment’—those who prefer an existing home over a new home—feel less strongly that new homes are better on quality of construction, floor plans, and design

This group should be explored further to better understand what can be done to continue to shift these perceptions

9

How has the market evolved over the past 12 months?

• Have prospects changed?

• Have different elements of the buying process changed?

Though there are fewer prospective buyers buying a home for the first time compared to last year, there are still more first time home buyers than in 2012

The typical prospective buyer today is similar to those from two years ago—slightly older and more affluent than in 2013

11

Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q11a: Will this be your first home purchase? Q3: What was the last level of education that you completed? Q4: What was your household’s total annual income before taxes in 2012? Q1: Indicate the category into which your age falls?

26

40 34

29

42

29 26

43

31

0%

20%

40%

60%

<Bachelors Bachelors Graduate or Pro. Degree

Education

49

30 21

57

27

16

53

29

18

0%

20%

40%

60%

$50-$100k $100-$150k $150k+

Income

11

30 22 18 18 21

35

24

12 9 15

36

20 17 12

0%

20%

40%

60%

25-29 30-39 40-49 50-59 60+

Age

2012 2013 2014

% 1st Time Homebuyers

2012 2013 2014

27 38 32

39 52 45

61 48 55

0%

25%

50%

75%

100%

2012 2013 2014

Ownership

Own

Rent

17 14 17

78 83 80

5 3 [VALUE]

2012 2013 2014

Type of Construction

Custom built on own lot

Existing Home

Brand new home offered by builder

The slight decrease in 1st time home buyers reflects the changes in the types of residences prospective buyers currently live in

More own their home compared to last year, and more are living in single family detached homes

12

39 43 37

61 57 63

2012 2013 2014

Type of Home

Single Family Detatached

Other

Current (Prospect) Primary Residence

Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q18: Do you own or rent your current residence? Q18a: Is your current residence a…? ● Q18b: When you first rented/purchased was it…?

The goals of home ownership remain consistent year-over-year

Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q16: Below is a list of goals of home ownership that may or may not be relevant to you. Please allocate 100 points among the 10 goals based on how important each is to you. 13

Family, financial investment, and privacy continue to be of greatest importance

5 5 5 4 5 5 6 6 6 6 6 6

8 9 8

11 11 12

16 14 15

16 15 15

12 13 12

15 16 16

0%

25%

50%

75%

100%

2012 2013 2014

Family

Financial investment

Privacy

Physical comforts

Stability

Friends

Community

Personal expression

Accomplishment

Creativity

Goals of Home Ownership (mean point allocation)

13

Simply being tired of their current home is now the top consideration trigger for prospective buyers

The perception of favorable market conditions has declined dramatically, though still remains a top trigger

Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q12: What triggered you to start thinking about purchasing a home? Select all that apply.. 14

49% of today’s prosp. buyers indicate some

form of change in family size* as a

trigger

*Change in Family Size includes Change of family circumstances/composition, Increase in family size, Decrease in family size, Planning to increase family size, Upcoming decrease in family size, older parent moving into my home, getting married/moving in with partner.

13

14

15

15

15

16

17

25

26

31

11

15

15

18

17

17

22

39

39

31

14

15

15

13

17

13

13

47

40

30

0% 25% 50% 75% 100%

Desire to live closer to fam/friends

Change of job/job location

Change in family circ./comp.

Planning to increase to family size

Relocated to new city

Increasing rent

Increase in income

Favorable home prices

Favorable interest rates

Tired of current home

% of respondents

Top 10 Consideration Triggers

2012

2013

2014

Slightly more shoppers are expecting to purchase more expensive homes compared to 2013

As seen in the past, there is considerable uncertainty as to when these home purchases will be made, and many of those who do know, expect to take their time with the decision-making process

15 Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q11: When do you expect to purchase a home? Q11b: Within what price range are you expecting to purchase your house?

13

33 40

15 12

37 40

12 11

33

42

15

0%

20%

40%

60%

<$100k to<$150k

$150k to<$250k

$250k to<$500k

$500k+

Expected Price Range

2012 2013 2014

4 9

15 13

40

20

2 8

12 11

40

27

5 8 12 13

40

22

0%

20%

40%

60%

Within 1month

1 to < 3months

3 to < 6months

6 to < 9months

9 to < 12months

Don'tknow

Expected Time Frame

While a variety of sources are used, national real estate listing websites continue to increase as the most used and most trusted

16

10

17

24

25

30

32

37

40

46

59

70

8

19

28

24

30

34

34

42

53

64

67

4

23

36

25

29

35

35

37

49

61

55

0% 25% 50% 75%

Social media

Newspapers/News articles

Local websites (not real estate specific)

Builder websites

New home websites

Real Estate/New Home Publications

Model home visits

Friends/family

Online search engines

Local real estate listing websites

National real estate listing websites

% of respondents

Active Search – Intend to use

2012

2013

2014

Most Trusted

42%

27%

6%

*

9%

3%

1%

3%

2%

1%

0%

Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q15: Which sources have you/do you intend to use in your search for a home? Not shown if <10% Select all that apply. Q15a: Which media source do you most trust? *Excluded from question

National real

estate websites took the top spot

from Local real estate websites in

2013, and continue to increase in popularity.

Though the use of social media is low, it continues to increase year-over-year, while the use of local websites and newspapers continues to decline

12 12 12

4 3 3

84 85 85

0%

25%

50%

75%

100%

2012 2013 2014

Intend to Use Realtor

Yes

No

Don't Know

Realtors continue to play a role in the buying process

Builders should take advantage of these relationships to help expose prospective buyers to new construction

17 Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q14: Do you plan to use a realtor?

51

53

62

62

65

66

67

68

69

75

53

58

67

65

67

67

73

71

72

75

51

53

61

61

63

63

66

65

68

70

0% 25% 50% 75%

Knowledge about the neighborhood

References for inspectors, contractors, lawyers, etc.

Have more up to date information on available properties

Determine what comparable homes sell for

Knowledge of market conditions

Assistance navigating you through the purchase process

Coordinate viewings/appointments

Draft offers and contracts

Find homes with your specifications

Help negotiate terms/price

% of respondents

Reasons for Using a Realtor

2012

2013

2014

Negotiating price, finding homes that meet clients’ needs, and drafting paperwork are the top reasons for using a realtor

Over half of prospective buyers are interested in the many ways that a realtor can help with the process

18 Base: Those who plan to use a realtor, Prospects (Wave 1): 824, (Wave 2): 1,043, (Wave 3): 1,055 ● Q14a: Why do you intend to use a realtor? Select all that apply..

.7

.8

1.7

2.0

2.6

2.7

3.3

3.6

3.7

4.2

4.3

4.5

4.8

4.9

5.4

5.9

5.9

6.1

6.4

7.5

9.1

9.8

0.8

0.8

1.8

1.9

2.7

2.7

3.4

3.4

3.6

4.3

4.2

4.7

4.6

5.1

5.9

6.5

5.6

6.2

6.1

7.4

8.7

9.6

1.0

0.8

1.9

1.9

2.7

2.6

3.6

3.4

3.9

3.7

4.2

4.1

4.6

5.6

5.2

6.1

5.9

6.3

6.7

7.5

8.5

9.7

.0 2.0 4.0 6.0 8.0 10.0

Prestige/Exclusivity

Less living space

Mature trees & landscaping

Community amenities (pool, park, golf course, etc.)

Sense of community within neighborhood

Established neighborhood

Character/Uniqueness of home

Storage space

Convenient to friends/family

Proximity to good schools

Convenient to shopping/entertainment/activities

Convenient to work

Ability to customize house to best suit you and your family

Architecture/Overall design (appearance of house)

Larger yard or lot/More space between houses

More living space

Energy efficiency

Lower cost per square foot/More space for the money

Lower maintenance costs (money and time spent)

Better floor plans for me and my family

Safer neighborhood

Quality of construction

Importance

Attribute Importance Across Waves

2012

2013

2014

Construction quality and safer neighborhoods are top criteria, with safety continuing to increase in importance

19

Base: Prospects (Wave 1): 955; (Wave 2): 1,207, (Wave 3): 1,084. Bad cases removed from results. Chart displays the mean importance score for each item. Maximum Difference utilities are converted into ratio-scaled probabilities that sum to 100 across the items. Thus an item with a score of 10 is twice as important as an item with a score of 5. The dotted line represents the average importance across all attributes in Wave 3 (4.5). INTERPRET WITH CARE – MEAN VALUES HIDE HETEROGENEITY OF PREFERENCE AND MAY BE SKEWED BY OUTLIERS.

Average

Energy efficiency

Ability to customize house

Lower maintenance costs


Community amenities

Storage space

More living space


Architecture/Overall design

Safer neighborhood

Quality of Construction

Given its high importance, quality of construction of ‘New’ homes continues to be an area to watch for builders; just as many prospects find the quality of ‘Existing’ homes to be better

20 Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q21: For each attribute below, please indicate the extent to which you believe existing and new homes differ.

Existing is Far Better (4pts)

No Difference (Middle 3pts)

New is Far Better (4pts)

Items rated on an 11pt slider scale with anchored ends. Data shown excludes middle 3 points. Items sorted by gap score (new-existing).

Attribute Performance (sorted from high to low based on gap between new minus existing)

Note: Movement of approximately 3 pp is considered meaningful

27

13

18

13

13

12

9

7

6

8

2

29

13

20

13

11

11

8

6

6

7

2

25

11

18

14

10

12

9

6

7

5

2

0%25%50%75%100%

2012

2013

2014

30

24

33

30

37

38

40

52

61

64

77

30

21

33

31

38

39

41

49

58

61

80

31

20

31

23

35

36

34

47

58

63

77

0% 25% 50% 75% 100%

New is Better Existing is Better




Less living space

Convenient to work

Lower cost per square foot



Larger yard or lot


Mature trees & landscaping 7

8

15

10

19

23

12

18

12

15

18

8

7

16

9

18

21

10

13

8

12

14

6

6

14

9

18

20

10

15

9

11

13

0% 25% 50% 75% 100%


66

58

46

38

38

30

17

21

14

16

18

67

59

46

39

41

31

16

23

14

15

18

67

59

44

37

35

29

17

24

15

16

17

0%25%50%75%100%

2012

2013

2014

In the past, ‘Existing’ has outperformed ‘New’ on convenience of location; this gap is declining, suggesting that new homes are being built in better areas

21 Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q21: For each attribute below, please indicate the extent to which you believe existing and new homes differ.







How have new and indifferent prospects changed?

*Performance gap (new-existing) score: Much better than existing (20+ higher), On par with or slightly better than existing (0 to 19), Worse than existing (<0)

Segment Summaries

New Segment

20% of the market

Indifferent Segment

35% of the market

Existing Segment

44% of the market

Who are they? (Compared to other segments)

• Slightly older • Higher incomes • Expect to spend more on a home • Looking for safer neighborhood and

planning increase in family size

• Slightly more educated • More likely to be relocating or

experiencing a change in family circumstance

• Slightly younger • Most likely to work full time • Expect to spend less • Increased rent is a purchase trigger

What have they done?

• More likely to have visited model homes • Met, spoken with, or hired a builder • Visited realtor and/or home builder

websites

• Engage in both new and existing behaviors (looking at model homes, looking at home listings online, and driving around looking of homes)

• More likely to have attended an open house

• Looked at home listings • Met, spoken with or hired a realtor • Sought pre-approval for a loan • Bid on a property • Visited an existing home

Which features are most important to them? Are new construction homes differentiated* on these features?

• Quality of Construction

• Safer Neighborhoods

• Better Floor Plans







What are perceived barriers to purchasing a new construction home?

• Less living space • Established neighborhood • Mature trees & landscaping

• Established neighborhood • Sense of community

• Quality of Construction • Overall Design • Character/uniqueness

23

21 20 18

30 31 30

49 49 52

0%

25%

50%

75%

100%

2012 2013 2014

% o

f re

spo

nd

ents

Consideration of Brand New Homes

Will Consider (%8-10)

Mixed (%5-7)

Will not Consider (%0-4)

5 4 5 20 18 19

75 78 76

0%

25%

50%

75%

100%

2012 2013 2014

% o

f re

spo

nd

ents

Consideration of Existing Homes

46 47 44

35 36 35

19 18 20

0%

25%

50%

75%

100%

2012 2013 2014

% o

f re

spo

nd

ents

Prospect: Net Preference

New Segment (%8-10)

Indifferent Segment (%5-7)

Existing Segment (%0-4)

Prospects’ preference for new homes has increased slightly in 2013

24

In turn, the net preference for existing homes has decreased, which is a positive sign for builders

Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q17: When looking for your new home, how strongly will you consider each of the following home choices?

-10 to -1 = Prefer Existing

+1 to +10 = Prefer New

Calculating Net Preference Consideration of New Home (0 to 10)

- Consideration of Existing Home (0 to 10)

= Difference of -10 to 10

0 = Indifferent

Quality of construction

Safer neighborhood

Better floor plans

Energy efficiency



Lower cost per sq. foot More living space


Larger yard or lot

0.0

2.0

4.0

6.0

8.0

10.0

12.0Top 10 Most Important Considerations

for Home Purchase (See Appendix for more detail)

2012 New Segment 2012 Indifferent Segment



Average

The ‘New’ segment places the greatest importance on the top two consideration factors, and this has increased from 2012

Compared to two years ago, the ‘New’ segment continues to be more interested in safer neighborhoods and less interested in lower costs

25

Base: Wave 1 (Prefer New, 184; Indifferent, 343); Wave 2 (Prefer New, 218; Indifferent, 441), Wave 3 (Prefer New, 249; Indifferent, 438) ● Q20 Chart displays the mean importance score for each item. Maximum Difference utilities are converted into ratio-scaled probabilities that sum to 100 across the items. Thus an item with a score of 10 is twice as important as an item with a score of 5. The dotted line represents the average importance across all attributes in Wave 3 (4.5). INTERPRET WITH CARE – MEAN VALUES HIDE HETEROGENEITY OF PREFERENCE AND MAY BE SKEWED BY OUTLIERS.

Mea

n im

po

rtan

ce

The importance that the ‘Indifferent’ segment

places on items today is largely similar to 12

months ago

Energy efficiency






More living space

Community amenities

Storage space

Safer neighborhood

Prestige/Exclusivity 33

32

43

43

43

46

51

68

73

72

80

37

33

41

44

40

54

53

66

69

65

80

31

32

46

41

50

54

55

64

73

66

81

0% 25% 50% 75% 100%

10

7

10

8

8

10

14

4

5

2

2

8

5

7

7

8

4

12

5

4

1

0

14

10

11

10

7

7

13

8

4

5

1

0%25%50%75%100%

2012 NewSegment

2013 NewSegment

2014 NewSegment


Better floor plans—a top consideration criteria—and lower maintenance costs have improved for new homes among the New segment

26 Base: New Segment (Wave 1): 184, New Segment (Wave 2): 218, New Segment (Wave 3): 249 ● Q21: For each attribute below, please indicate the extent to which you believe existing and new homes differ.







1

2

3

Importance

Energy efficiency




Community amenities

Storage space

More living space



Safer neighborhood

Quality of Construction 32

24

32

37

38

42

42

57

63

66

79

33

22

32

37

41

42

41

53

61

65

82

31

20

25

33

36

35

34

54

62

65

79

0% 25% 50% 75% 100%


Indifferent buyers’ impression of new homes has also improved for better floor plans and safer neighborhoods, both top criteria

27 Base: Indifferent Segment (Wave 1): 343, Indifferent Segment (Wave 2): 441, Indifferent Segment (Wave 3): 438 ● Q21: For each attribute below, please indicate the extent to which you believe existing and new homes differ.







1

2

3

Importance

24

11

10

13

12

9

7

4

5

5

2

22

11

12

14

10

10

6

4

5

4

2

22

8

10

13

7

9

8

3

6

3

2

0%25%50%75%100%

2012 IndifferentSegment



0.0

2.0

4.0

6.0

8.0

10.0

12.0

Other Considerations for Home Purchase

Existing Segment

Indifferent Segment

New Segment

Average

Character, a sense of community, and established neighborhoods are more important to those who prefer existing homes

These factors align with what makes existing homes more appealing

28

Mea

n im

po

rtan

ce

Base: All, Wave 3 Prospects (Prefer Existing, 249; Indifferent, 438; Prefer New, 549) ● Q20 Chart displays the mean importance score for each item. Maximum Difference utilities are converted into ratio-scaled probabilities that sum to 100 across the items. Thus an item with a score of 10 is twice as important as an item with a score of 5. The dotted line represents the average importance across all attributes in Wave 3 (4.5). INTERPRET WITH CARE – MEAN VALUES HIDE HETEROGENEITY OF PREFERENCE AND MAY BE SKEWED BY OUTLIERS.

Established neighborhood Convenient to

shopping/ entertainment/

activities Character/ Uniqueness

Convenient to work Convenient to

friends/family

Storage space


Sense of community

Community amenities

Less living space

Prestige/ Exclusivity

Mature trees and landscaping

Neighborhood preference

Base: Wave 3 Prospects who prefer new home communities: 331 ● Q22a: Why do you prefer new home communities over existing homes? Please be as specific as possible. Base: Wave 3 Prospects who prefer established neighborhoods/existing subdivisions: 905 ● Q22b: Why do you prefer established neighborhoods/existing subdivisions over new home communities? Please be as specific as possible.

Why do you prefer new home communities over existing homes?

Why do you prefer established neighborhoods/existing subdivisions over new homes?

“Lower maintenance costs, floor plans that are

more suitable to entertaining, and they

typically offer more storage space.”

“I feel that when people move to a newer community they are looking for a change in atmosphere. I seem to find more positive

friendly people.”

“[I have the] ability to custom build according to

[my] wants and needs without having to

completely renovate an existing home.”

Like the look and feel of a diverse style of homes, trees, yards, etc. New is

usually boring and cookie cutter with no distinct differences in housing.

“[The] character of the community. People have been there longer and care about

their community. This can mean more community events,

more character of the area, and safer area.”

“Typically, the construction on an older home is better than the newer homes in certain

price ranges. An established neighborhood also allows you to see how the neighborhood

has or has not been preserved over time.”

29

Home performance on Quality of construction, the most important purchase consideration varies by segment

While the New Segment believes that the quality of construction is better for new homes, the existing segment feels the opposite

All segments rate new homes as superior versus existing homes for floor plans, though the existing segment is slightly less convinced

Regardless of segment, the majority believe there is little difference between new and existing homes for neighborhood safety

30

14 24

36

36

44 44

51 32

20

0%

25%

50%

75%

100%

New Segment IndifferentSegment

Existing Segment

% o

f re

spo

nd

ents


New is Better

No Difference

Existing is Better

2 4 11 26

39

51

72 57

38

0%

25%

50%

75%

100%


Existing Segment

% o

f re

spo

nd

ents

Better Floor Plans

7 11 17

61 65 63

32 24 21

0%

25%

50%

75%

100%


Existing Segment

% o

f re

spo

nd

ents

Safer Neighborhood

Base: All, Wave 3 Prospects (Prefer Existing, 249; Indifferent, 438; Prefer New, 549) ● Q21: For each attribute below, please indicate the extent to which you believe existing and new homes differ.

As in 2013, new homes outperform existing on energy efficiency, customization, and maintenance costs

The ‘Existing Segment’ feels less strongly that new homes are better on construction quality, floor plans, or design

31

13

21

27

32

33

36

24

20

57

38

57

74

21

24

32

42

38

42

37

32

63

57

66

79

31

32

33

43

43

43

46

51

68

72

73

80

0% 25% 50% 75% 100%


Safer neighborhood


Storage space

More living space

Community amenities






Energy efficiency

% of respondents

New Segment

Indifferent Segment

Existing Segment

% New is Better than Existing

Base: All, Wave 3 Prospects (Prefer New, 249; Indifferent, 438; Prefer Existing, 549) ● Q21: For each attribute below, please indicate the extent to which you believe existing and new homes differ.

The ‘Existing

Segment’ should be explored

further next wave to better

understand what can be done to change these perceptions

The ‘Existing Segment’ is also less convinced that new homes are better for convenience, community, established neighborhoods and mature landscaping

Fortunately, the items for which new underperforms are of lesser importance to home shoppers

32

5

7

7

20

8

8

12

14

15

22

8

9

10

17

12

13

15

13

18

21

12

12

15

16

18

20

21

21

23

29

0% 25% 50% 75% 100%




Less living space

Convenient to work



Larger yard or lot


Lower cost per square foot

% of respondents

New Segment

Indifferent Segment

Existing Segment

% New is Better than Existing

Base: All, Wave 3 Prospects (Prefer New, 249; Indifferent, 438; Prefer Existing, 549) ● Q21: For each attribute below, please indicate the extent to which you believe existing and new homes differ.

Builder Awareness by MSA

Builder Awareness: Atlanta-Sandy Springs-Marietta, GA

34

Georgia

Sandy Springs,

Atlanta, Marietta

Base: Those in MSA, (Atlanta-Sandy Springs-Marietta, GA: Wave 1 Prospect 39; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness (% Aware): Atlanta-Sandy Springs-Marietta

Builders 2012 2013 2014 Builders 2012 2013 2014

John Wieland Homes 72% 75% 65% Signature Bank . 13% 13%

Ryland Homes 72% 63% 55% Peachtree Communities 28% 23% 10%

Beazer Homes 67% 65% 50% JEH Homes . 15% 10%

Pulte Homes 67% 48% 48% Jim Chapman Communities . 20% 10%

DR Horton 62% 38% 45% KRR Builders LLC . 10% 10%

Centex Homes 51% 50% 38% Legendary Communities . 8% 10%

KB Home 46% 35% 38% Southland Custom Homes . 18% 10%

Ashton Woods 46% 43% 33% Wilson Parker Homes Marketing . 5% 10%

Del Webb Corporation . 35% 30% America’s Home Place . 20% 8%

David Weekley Homes 26% 33% 23% Sky Lofts . 15% 8%

Lennar 44% 23% 23% Soleil Laurel Canyon . 25% 8%

Crown Communities Inc. 13% 20% 20% The Orchards Group . 8% 8%

Traton Homes 15% 20% 18% The Washington at Historic Westside . 5% 8%

Custom Builders Atlanta LLC . 23% 18% ST Residential 3% 0% 5%

Heron Bay . 13% 18% Ravin Homes . 8% 5%

The Providence Group . 23% 18% Newland Communities-Sterling . 5% 3%

Brock Built (Marketing by Brock, LLC) . 13% 13% Symphony Homes, LLC . 5% 3%

KM Homes . 10% 13%

Builder Awareness: Austin-Round Rock, TX

35

Texas

Austin,

Round Rock

Builder Awareness (% Aware): Austin-Round Rock


KB Home 75% 74% 78% Coventry Homes 23% 21% 30%

DR Horton 85% 69% 73% Milestone Community Builders . 13% 30%

Centex Homes 78% 59% 68% Pacesetter Homes . 10% 25%

Lennar Homes 60% 56% 68% Del Webb 48% 33% 23%

Pulte Homes 65% 54% 63% Ashton Woods Homes 15% 13% 23%

David Weekley Homes 63% 49% 63% Plantation Homes 20% 13% 23%

Ryland Homes 55% 59% 58% Grand Haven Homes . 15% 23%

Meritage Homes 38% 36% 55% Village Builders 15% 8% 20%

Gehan Homes 28% 28% 45% Jimmy Jacobs Custom Homes . 31% 20%

Standard Pacific Homes 35% 31% 43% Bigelow Homes –Austin . 8% 18%

Highland Homes 20% 23% 40% Monterey Homes 10% 8% 15%

Wilshire Homes 38% 26% 40% Ash Creek Homes, Inc. . 8% 15%

Streetman Homes . 23% 38% Sitterle Homes . 8% 15%

Tilson Homes . 28% 38% Treaty Oak Homes . 8% 15%

Taylor Morrison 33% 33% 33% Newland Communities . 5% 13%

CastleRock Communities . 26% 33% LGI Homes . 3% 10%

Drees Custom Homes 38% 33% 30% Rostrata Builders . 0% 5%

Base: Those in MSA, (Austin-Round Rock, TX: Wave 1 Prospect 40; Wave 2 Prospect 39; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: San Antonio, TX

36

Texas

San Antonio

Builder Awareness (% Aware): San Antonio


KB Home 88% 90% 97% Highland Homes 23% 30% 33%

Centex Homes 78% 78% 92% Perry Homes 33% 40% 33%

DR Horton 80% 85% 92% Toll Brothers 28% 25% 33%

Pulte Homes 73% 75% 72% Gehan Homes 10% 10% 26%

Lennar Homes 33% 58% 69% Plantation Homes 23% 25% 26%

Ryland Homes 63% 75% 69% McMillin Homes 25% 18% 23%

David Weekley Homes 53% 53% 54% Imagine Homes . 13% 23%

Meritage 25% 33% 51% M/I Homes 3% 8% 21%

Armadillo Homes 40% 45% 51% Castle Rock Communities . 10% 21%

Del Webb 40% 40% 44% Ashton Woods Homes 8% 15% 15%

Wilshire Homes 40% 45% 44% Woodside Homes . 5% 5%

Sitterle Homes . 58% 41% Village Builders 5% 8% 0%

Coventry Homes 13% 25% 36% MHI McGuyer Homebuilders . 3% 0%

Base: Those in MSA, (San Antonio, TX: Wave 1 Prospect 40; Wave 2 Prospect 40; Wave 3 Prospect 39) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Dallas-Fort Worth-Arlington, TX

37

Texas

Dallas, Ft.

Worth, Arlington

Builder Awareness (% Aware): Dallas-Fort Worth-Arlington


KB Home 70% 55% 73% Meritage Homes 23% 33% 28%

Centex Homes 65% 63% 70% Del Webb 28% 13% 25%

DR Horton 88% 63% 70% First Texas Homes 23% 20% 25%

David Weekley Homes 65% 55% 65% Horizon Homes 23% 13% 23%

Ryland Homes 60% 48% 60% Standard Pacific Homes 15% 8% 18%

K. Hovnanian Homes 50% 28% 60% Plantation Homes 23% 18% 15%

Pulte Homes 55% 50% 58% Huntington Homes 8% 15% 13%

Lennar 55% 43% 53% Landon Homes . 5% 13%

Ashton Woods Homes 28% 35% 48% Tilson Homes . 13% 13%

Beazer Homes 45% 30% 43% LionsGate Homes . 5% 10%

Grand Homes 35% 28% 43% Shaddock Homes . 0% 10%

Toll Brothers 55% 28% 40% Dunhill Homes . 10% 8%

Highland Homes 25% 28% 38% LGI Homes . 10% 5%

Drees Homes 38% 35% 38% Monterey Homes 5% 5% 3%

Cambridge Homes . 35% 35% Grenadier Homes . 5% 3%

Coventry Homes 20% 18% 33% Harmony Homes . 8% 3%

Gehan Homes 18% 20% 30% J Houston Homes . 13% 3%

Darling Homes . 28% 30% Lillian Custom Homes . 8% 0%

Base: Those in MSA, (Dallas-Fort Worth-Arlington, TX: Wave 1 Prospect 40; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Houston-Sugar Land-Baytown, TX

38

Texas

Houston, Sugar Land, Baytown

Base: Those in MSA, (Houston-Sugar Land-Baytown, TX, Wave 1 Prospect 40; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness (% Aware): Houston-Sugar Land-Baytown

Builders 2012 2013 2014 Builders 2012 2013 2014 Builders 2012 2013 2014

David Weekley Homes

85% 83% 73% Del Webb 30% 25% 33% M/I Homes 3% 10% 13%

Lennar Homes 85% 78% 70% Plantation Homes 45% 40% 30% Gateway Homes 13% 18% 13%

DR Horton 63% 45% 63% Tilson Homes . 48% 30% CastleRock

Communities . 18% 13%

Perry Homes 75% 73% 63% Meritage Homes 33% 43% 25% J. Kyle Homes . 5% 13%

KB Home 88% 73% 63% Coventry Homes 40% 20% 25% K. Hovnanian Homes 5% 13% 10%

Beazer Homes 50% 50% 58% Toll Brothers 20% 15% 25% Signorelli Company . 13% 10%

Pulte Homes 75% 45% 55% Taylor Morrison 28% 13% 25% First Texas Homes

(Corporation) . 13% 8%

Brighton Homes 58% 63% 53% Pioneer Homes 15% 25% 23% Parkwood Builders 5% 5% 5%

Ryland Home 80% 73% 53% Darling Homes . 23% 23% Monterey Homes 3% 5% 5%

Village Builders 68% 55% 50% Newmark Homes . 30% 23% Carmel Builders 8% 3% 5%

Trendmaker Homes 58% 50% 45% Highland Homes 30% 30% 20% Stylecraft Builders . 3% 5%

Centex Homes 45% 38% 38% LGI Homes . 8% 20% First America Homes . 8% 5%

Chesmar Homes . 38% 38% Gehan Homes 23% 10% 18% Colina Homes . 3% 3%

Ashton Woods Homes

45% 33% 35% Legend Home Corp. . 18% 15%

Builder Awareness: Orlando- Kissimmee, FL

39

Florida

Tampa, St. Pete,

Clearwater, Orlando, Kissimmee

Builder Awareness (% Aware): Orlando-Kissimmee, FL


KB Home 82% 85% 85% K. Hovnanian Homes 21% 20% 27%

Lennar Homes 74% 85% 80% Centerline Homes 26% 38% 27%

Centex Homes 69% 73% 66% ICI Homes . 15% 27%

Ryland Homes 62% 83% 61% Standard Pacific Homes 10% 20% 24%

DR Horton 46% 58% 59% Harmony Development . 23% 12%

Pulte Homes 51% 53% 56% Royal Oak Homes . 10% 12%

David Weekley Homes 46% 33% 54% Divosta Homes 18% 13% 7%

Maronda inc. . 45% 54% Mattamy Homes . 13% 5%

Beazer Homes 38% 45% 51% Minto Communities . 3% 5%

Toll Brothers 38% 35% 46% Home Dynamics Corp. . 5% 2%

MI Homes 33% 45% 44% Richmond American Homes . 3% 2%

Meritage Homes 33% 38% 41% AV Homes . 5% 0%

Ashton Woods Homes 33% 40% 39% ERM Development . 0% 0%

Del Webb 54% 30% 34% NVR . 0% 0%

Taylor Morrison 28% 33% 34% Villages of Parkwood . 0% 0%

Park Square Homes 41% 28% 29%

Base: Those in MSA, (Orlando-Kissimmee, FL, Wave 1 Prospect 39; Wave 2 Prospect 40; Wave 3 Prospect 41) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Tampa-St. Petersburg, Clearwater, FL

40

Florida

Tampa, St. Pete,

Clearwater, Orlando, Kissimmee

Builder Awareness (% Aware): Tampa-St. Petersburg, Clearwater, FL


Lennar Homes 73% 78% 67% Southern Crafted Homes . 18% 15%

KB Home 55% 75% 51% Meritage Homes 5% 5% 10%

Centex Homes 53% 65% 41% Standard Pacific Homes 13% 10% 10%

MI Homes 45% 43% 36% Maronda Inc . 13% 10%

Pulte Homes 45% 53% 36% Taylor Morrison 18% 18% 8%

Beazer Homes 35% 40% 33% G.L. Homes 13% 8% 8%

Ryland Homes 68% 70% 33% William Ryan Homes 3% 0% 8%

Del Webb 35% 33% 28% Homes by Westbay . 8% 8%

Ashton Woods Homes 20% 20% 28% Mobley Homes . 13% 8%

David Weekley Homes 25% 33% 28% K. Hovnanian Homes 25% 18% 5%

DR Horton 38% 40% 21% Gulfwind Homes . 0% 0%

Ryan Homes . 40% 18% NVR . 0% 0%

Base: Those in MSA, (Tampa-St. Petersburg-Clearwater, FL, Wave 1 Prospect 40; Wave 2 Prospect 40; Wave 3 Prospect 39) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Miami-Ft. Lauderdale, Pompano, FL

41

Florida

Builder Awareness (% Aware)

Miami-Ft. Lauderdale, Pompano, FL

Builders 2012 2013 2014

Lennar Homes 85% 63% 80%

GL Homes 58% 22% 39%

Centex Homes 63% 27% 37%

DR Horton 30% 24% 29%

Pulte Homes 48% 20% 24%

Terra Group 28% 22% 22%

Minto Communities 35% 12% 20%

Related Group 10% 10% 20%

Centerline Homes 28% 10% 17%

Del Webb 15% 7% 12%

Key International 13% 10% 10%

Divosta 23% 5% 7%

CC Devco 0% 5% 0%

Miami,

Ft. Lauderdale, Pompano Bch, Jacksonville

Base: Those in MSA, (Miami-Fort Lauderdale-Pompano Beach, FL, Wave 1 Prospect 40; Wave 2 Prospect 41; Wave 3 Prospect 41) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Jacksonville, FL

42

Florida

Miami,

Ft. Lauderdale, Pompano Bch, Jacksonville

Builder Awareness (% Aware)

Jacksonville, FL

Builders 2012 2013 2014


KB Home 83% 82% 78%

DR Horton 73% 82% 73%


Del Webb 58% 54% 49%

Toll Brothers 40% 44% 41%

ICI Homes 33% 23% 41%

David Weekley Homes 30% 26% 38%

Mattamy Homes 23% 15% 35%

Dream Finders Homes 13% 21% 35%

Richmond American Homes

33% 26% 32%

Providence Homes 8% 33% 32%

Drees Homes 15% 21% 22%

Standard Pacific Homes 5% 13% 19%

Taylor Morrison 18% 15% 19%

Maronda Inc. . 5% 14%

America's Home Place . 5% 5%

Dock Street Communities

. 0% 0%

Group IV Properties . 8% 0%

Base: Those in MSA, (Jacksonville, FL, Wave 1 Prospect 40; Wave 2 Prospect 39; Wave 3 Prospect 37) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Riverside-San Bernardino-Ontario, CA

43

California

Riverside, San

Bernardino, Ontario

Builder Awareness (% Aware): Riverside-San Bernardino-Ontario


KB Home 100% 84% 89% Standard Pacific Homes 38% 38% 32%

DR Horton 53% 51% 62% Toll Brothers 33% 22% 27%

Lennar Homes 73% 62% 62% Meritage Homes 30% 22% 24%

Del Webb 65% 57% 54% Richmond American Homes 28% 24% 22%

K Hovnanian Homes 48% 43% 49% Brookfield Homes . 16% 19%

Centex Homes 68% 51% 46% Pacific Communities . 32% 16%

Pulte Homes 50% 38% 46% Woodside Homes 10% 8% 14%

Pardee Homes 48% 46% 46% Crestwood Communities . 5% 14%

Ryland Homes 45% 22% 43% TRI Pointe Homes . 3% 5%

Beazer Homes 38% 41% 41% Sea Country Homes . 5% 0%

Van Daele Homes . 30% 35%

Base: Those in MSA, (Riverside-San Bernardino-Ontario, CA, Wave 1 Prospect 40; Wave 2 Prospect 37; Wave 3 Prospect 37) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Los Angeles-Long Beach-Santa Ana, CA

44

California

L.A., Long Beach,

Santa Ana

Builder Awareness (% Aware): Los Angeles-Long Beach-Santa Ana


KB Home 76% 67% 73% Woodbridge Pacific Group . 10% 20%

Lennar Homes 44% 38% 53% Richmond American Homes 15% 5% 18%

The Irvine Company 56% 52% 53% Pacific Legacy Homes . 7% 15%

Shea Homes 41% 29% 45% Fieldstone Homes . 12% 15%

Pardee Homes 22% 26% 43% Olson Homes 20% 7% 13%

Toll Brothers 39% 19% 35% Brandywine Homes . 14% 13%

Pulte Homes 34% 17% 30% The Warmington Group . 5% 13%

Standard Pacific Homes 27% 26% 30% S&S Construction - Shapell . 5% 10%

Irvine Pacific . 29% 30% TRI Pointe Homes . 5% 10%

William Lyon Homes 34% 29% 28% Taylor Morrison . 2% 10%

Beazer 22% 24% 25% Van Daele Homes 10% 10% 8%

Pacific Communities . 10% 23% City Ventures . 2% 8%

Meritage Homes . 5% 23% Shapell Homes 7% 7% 5%

K. Hovnanian Homes 41% 31% 20% MBK Homes . 5% 5%

Brookfield Homes 12% 14% 20% Christopher Homes . 2% 5%

DB Builders . 17% 20% Planet Home Living . 2% 3%

J.F. Shea Co. . 21% 20% Mesa Orchard Associates . 0% 0%

Base: Those in MSA, (Los Angeles-Long Beach-Santa Ana, CA, Wave 1 Prospect 41; Wave 2 Prospect 42; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Sacramento, CA

45

California

Sacramento

Builder Awareness (% Aware):

Sacramento

Builders 2013 2014

KB Home 83% 76%

Elliott Homes 49% 71%

Del Webb 59% 68%

Centex Home 46% 66%

Pulte 41% 51%

Beazer Homes 51% 51%

Lennar 39% 46%

JMC Homes 37% 46%

K. Hovnanian Homes 32% 46%

JTS Communities 29% 44%

Standard Pacific Homes 24% 37%

Meritage Homes 24% 37%

Taylor Morrison 29% 32%

Tim Lewis Communities 15% 24%

Woodside Homes 10% 17%

Signature Homes - CA 15% 17%

Discovery Homes 12% 12%

Regis Homes of Sacramento 12% 12%

The Warmington Group 2% 10%

Crowne Communities 5% 7%

Base: Those in MSA, (Sacramento, CA, Wave 2 Prospect 41; Wave 3 Prospect 41) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: San Francisco-San Jose, CA

46

California

San Francisco, San Jose

Builder Awareness (% Aware): San Francisco-San Jose

Builders 2013 2014 Builders 2013 2014

KB Home 76% 67% A. D. Seeno Construction Co. 2% 15%

DR Horton 29% 44% Seeno Homes 5% 15%

Pulte 39% 44% Brookfield Homes 15% 15%

Shea Homes 32% 41% Davidon Homes 10% 13%

Lennar 29% 41% The Warmington Group 2% 13%

Toll Brothers 27% 36% Kiper Homes 0% 10%

Del Webb 24% 33% Taylor Morrison 10% 8%

Discovery Home 12% 33% Benchmark Communities 7% 8%

Centex 22% 28% The Stone Group 5% 5%

Shapell Homes 20% 26% Robson Homes 5% 5%

K. Hovnanian Homes 10% 21% TRI Pointe Homes 2% 5%

Standard Pacific Homes 17% 21% Classic Communities 2% 3%

SummerHill Homes 20% 21% City Ventures 0% 3%

William Lyon Homes 7% 21% Bosa Development 0% 0%

Meritage Homes 12% 18% Farallon Capital Management, LLC 5% 0%

Signature Homes 15% 18% 300 Ivy c/o Farm 0% 0%

Base: Those in MSA, (San Francisco-San Jose, CA, Wave 2 Prospect 41; Wave 3 Prospect 39) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Chicago-Naperville-Joliet, IL

47

Illinois

Chicago, Naperville, Joliet

Builder Awareness (% Aware): Chicago-Naperville-Joliet


Del Webb 48% 43% 38% K. Hovnanian Homes 8% 18% 5%

Pulte Homes 58% 45% 35% William Ryan Homes 20% 23% 5%

Ryland Homes 70% 53% 25% Belgravia Group . 8% 5%

Centex Homes 55% 58% 20% New Home Star - Shodeen

Residential . 10% 5%

Toll Brothers 30% 28% 20% Crown Communities

(DemiCooper) . 3% 5%

Lennar Homes 38% 30% 20% Orleans Homes 0% 13% 3%

Hartz Homes . 33% 15% Gammonley Group 0% 5% 3%

Olthof Homes 8% 3% 13% Iroquois Club . 8% 3%

Ryan Homes . 25% 13% NVR Inc. . 3% 0%

Wyndham Deerpoint Homes . 15% 13% Modern Homes Inc. . 8% 0%

DR Horton 23% 28% 10% Meadowbrook Homes . 10% 0%

Kimball Hill Homes 25% 35% 10% J. Lawrence Homes . 3% 0%

MI Homes 8% 10% 8%

Base: Those in MSA, (Chicago-Naperville-Joliet, IL, Wave 1 Prospect 40; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Phoenix-Mesa-Scottsdale, AZ

48

Arizona

Phoenix, Mesa, Scottsdale

Builder Awareness (% Aware): Phoenix-Mesa-Scottsdale


Fulton Homes 92% 83% 83% Elliot Homes . 30% 24%

KB Home 72% 73% 80% Blandford Homes 21% 8% 22%

Pulte Homes 87% 88% 78% Cachet Homes . 23% 22%

Shea Homes 72% 53% 73% Bellago Homes . 18% 20%

Beazer Homes 67% 75% 73% Trend Homes . 15% 20%

Del Webb 87% 78% 68% Mattamy Homes . 3% 17%

DR Horton 56% 75% 66% Woodside Homes . 5% 17%

Lennar 49% 45% 61% Courtland Communities . 8% 15%

Taylor Morrison 44% 53% 59% William Lyon Homes . 18% 15%

Meritage Homes 49% 55% 56% Farnsworth Homes . 8% 10%

Richmond American Homes 44% 48% 56% Ryan Homes . 10% 10%

K. Hovnanian Homes 49% 35% 54% David Weekley Homes 3% 3% 7%

Maracay Homes . 45% 51% Cresleigh Homes . 5% 7%

Centex Homes 54% 50% 46% Rosewood Homes . 8% 7%

Toll Brothers 49% 48% 46% Gehan Homes . 0% 5%

Ashton Woods Homes 18% 20% 37% AV Homes . 3% 2%

Standard Pacific Homes 33% 35% 34% Mint Homes . 0% 2%

Camelot Homes . 28% 27% William Ryan Homes 3% 10% 0%

Base: Those in MSA, (Phoenix-Mesa-Scottsdale, AZ, Wave 1 Prospect 39; Wave 2 Prospect 40; Wave 3 Prospect 41) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Washington-Arlington-Alexandria

49

D.C. Area

Washington, Arlington, Alexandria

Base: Those in MSA, (Washington-Arlington-Alexandria, Wave 1 Prospect 40; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness (% Aware): Washington-Arlington-Alexandria


Ryan Homes 65% 55% 60% Carr Homes . 15% 13%

Toll Brothers 48% 45% 50% Dan Ryan Builders . 25% 13%

Ryland Homes 65% 53% 43% NVR . 20% 13%

Pulte Homes 50% 45% 38% Stanley Martin Homes 23% 23% 10%

K. Hovnanian Homes 30% 38% 35% Comstock Homes . 15% 10%

Lennar Homes 30% 38% 30% Williamsburg Homes . 20% 10%

NV Homes 33% 28% 30% Van Metre Homes 20% 23% 8%

Centex Homes 38% 48% 25% Advantage Homes . 13% 8%

Beazer Homes 30% 35% 25% Evergreene Homes . 8% 8%

Winchester Homes 30% 25% 25% Timberlake Homes . 15% 8%

DR Horton 18% 23% 23% Camberley Homes 10% 3% 5%

KB Home 33% 28% 20% Hazel Homes . 0% 5%

Del Webb 18% 18% 15% Westbrooke Homes . 13% 5%

Drees Homes 15% 23% 15% Curtis Building Company . 0% 3%

Richmond American Homes 18% 33% 15% Kettler Forlines Homes . 13% 3%

American Heritage Custom Homes

. 23% 15% Manor House Builders . 3% 3%

Brookfield Homes . 18% 15% Integrity Homes . 5% 0%

M/I Homes 15% 10% 13%

Builder Awareness: New York-Northern NJ-Long Island

50

Tri-State Area

Builder Awareness (% Aware): New York-Northern NJ-Long Island

Builder 2012 2013 2014


K. Hovnanian Homes 59% 43% 33%



Timber Ridge Homes 17% 13% 13%

The Engel Burman Group 0% 13% 8%

American Properties 15% 18% 8%

The Beechwood Organization 7% 8% 5%

Extell Development Company 5% 5% 5%

Douglaston Development 5% 5% 0%

New York, Northern NJ, Pennsylvania

Base: Those in MSA, (New York-Northern New Jersey-Long Island, Wave 1 Prospect 41; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Las Vegas-Paradise, NV

51

Nevada

Las Vegas, Paradise

Builder Awareness (% Aware): Las Vegas-Paradise


KB Home 92% 93% 88% Toll Brothers 62% 45% 40%

DR Horton 77% 80% 85% Harmony Homes 33% 28% 40%

Pardee Homes 72% 80% 80% American West Homes 54% 60% 40%

Pulte Homes 79% 93% 78% Woodside Homes . 23% 28%

Lennar Homes 79% 65% 73% Pinnacle Homes . 33% 18%

Beazer Homes 64% 65% 73% Meritage Homes 28% 20% 13%

Del Webb 79% 80% 70% Providence Homes . 18% 13%

Ryland Homes 69% 55% 60% The Warmington Group . 3% 13%

Richmond American Homes 64% 63% 53% The Martin Group . 0% 5%

Dunhill Homes 36% 43% 43% Angle Homes . 0% 0%

Base: Those in MSA, (Las Vegas-Paradise, NV, Wave 1 Prospect 39; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Philadelphia-Camden-Wilmington

52

Other Mid Atlantic

Philadelphia, Camden, Wilmington

Builder Awareness (% Aware): Philadelphia-Camden-Wilmington


Toll Brothers 83% 79% 83% Gemcraft Homes . 5% 8%

Ryan Homes 50% 44% 53% Centex Homes 3% 10% 5%

K. Hovnanian Homes 33% 33% 35% Richmond American Homes 5% 3% 5%

Orleans Homes 30% 31% 33% Baker Residential . 3% 5%

Pulte Homes 50% 36% 28% Edgewood Properties . 10% 5%

Cedar Knoll Builders . 10% 20% Keystone Custom Homes . 13% 5%

T.H. Properties 28% 21% 18% Rouse Chamberlin . 8% 5%

Beazer Homes 13% 13% 15% Sal Lapio Homes . 5% 5%

Lennar 3% 8% 13% Tim Schaeffer Communities . 5% 5%

WB Homes . 10% 13% Hallmark Homes . 10% 3%

Heritage Homes Group 25% 41% 10% Judd Builders . 8% 3%

DR Horton 20% 18% 8% NVR . 3% 3%

NV Homes 20% 13% 8% Summerfields West . 5% 3%

Cornell Homes 3% 8% 8% Wynlake Homes . 5% 3%

Base: Those in MSA, (Philadelphia-Camden-Wilmington, Wave 1 Prospect 40; Wave 2 Prospect 39; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=pFtMY3AqWGzBfM&tbnid=vJcxO8osxFKC0M:&ved=0CAUQjRw&url=http://www.winnipesaukee.com/forums/showthread.php?t=14356&ei=1xvoUYfWKobuyAHFrIDIAw&bvm=bv.49478099,d.aWc&psig=AFQjCNEAtlxZ-YkYz8Y06-r1GIRW4vvIbA&ust=1374252352510803

Builder Awareness: Seattle-Tacoma-Bellevue, WA

53

Washington

Seattle, Tacoma, Bellevue

Builder Awareness (% Aware): Seattle-Tacoma-Bellevue

Builder 2012 2013 2014

Quadrant Homes 85% 74% 80%

DR Horton 58% 41% 53%


Polygon Homes 45% 54% 33%

Lennar 25% 18% 30%


Burnstead . 33% 23%


Shea Homes 28% 23% 18%

Builders of America 8% 26% 18%

Richmond American Homes 5% 8% 15%

Murray Franklyn Homes 13% 18% 13%

Conner Homes . 28% 13%

Bellevue Towers Condos LLC 10% 33% 8%

Schneider Homes . 15% 5%

Encore Homes 5% 8% 3%

PRH . 3% 3%

Base: Those in MSA, (Seattle-Tacoma-Bellevue, WA, Wave 1 Prospect 40; Wave 2 Prospect 39; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Raleigh-Cary, NC

54

The Carolinas

Raleigh, Cary, Charlotte, Gastonia,

Concord

Base: Those in MSA, (Raleigh, Cary, NC, Wave 1 Prospect 40; Wave 2 Prospect 40; Wave 3 Prospect 39) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness (% Aware): Raleigh-Cary

Builders 2012 2013 2014 Builders 2012 2013 2014 Builders 2012 2013 2014

Centex Homes 80% 63% 67% Ashton Woods

Homes 8% 13% 28% Dan Ryan Builders . 20% 13%

Beazer Homes 70% 53% 64% David Weekley

Homes 25% 8% 28% Eastwood Homes . 23% 13%

Lennar Homes 80% 60% 62% John Wieland

Homes 45% 25% 28% Adams Homes . 5% 10%

KB Home 88% 63% 62% Meritage Homes 3% 15% 28% Chesapeake Homes . 15% 10%

Pulte Homes 68% 48% 51% Del Webb 43% 20% 26% Peachtree

Communities . 10% 10%

Drees Homes 55% 38% 46% Standard Pacific

Homes 13% 33% 23% Orleans Homes 18% 8% 8%

Toll Brothers 73% 55% 46% Bill Clark Homes . 15% 18% Citizens Homes . 3% 5%

Fonville Morisey & Barefoot

. 50% 41% H.H. Hunt Homes . 18% 18% Homes by Dickerson . 8% 5%

K. Hovnanian Homes 60% 28% 36% Royal Oaks Building

Group 5% 15% 15% Level Homes . 10% 5%

DR Horton 55% 38% 36% Baker Residential . 15% 15% PCS Homes . 8% 5%

Ryan Homes 43% 30% 36% Shea Homes 8% 10% 13% Terramor Homes . 8% 5%

Ryland Homes . 20% 36% ForeverHome 10% 20% 13% NVR . 5% 3%

MI Homes 63% 30% 28% Cimarron Homes . 23% 13% Timberstone Homes . 5% 3%

Builder Awareness: Charlotte-Gastonia-Concord, NC-SC

55

The Carolinas

Raleigh, Cary, Charlotte, Gastonia,

Concord

Base: Those in MSA, (Charlotte, Gastonia, Concord, NC-SC, Wave 1 Prospect 40; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness (% Aware): Charlotte-Gastonia-Concord, NC-SC


Ryland Homes 75% 80% 75% Schumacher Homes . 28% 23%

Ryan Homes 83% 68% 68% Orleans Homes 15% 23% 20%

DR Horton 63% 60% 63% Mattamy Homes 18% 20% 18%

Lennar Homes 70% 55% 63% Meritage Homes . 8% 18%

KB Home 63% 63% 58% Regent Homes 18% 38% 15%

Centex Homes 73% 68% 55% Citizens Homes . 10% 15%

Pulte Homes 50% 55% 48% J.F. Shea . 28% 13%

Eastwood Homes 50% 55% 40% The Cunnane Group . 13% 10%

Del Webb Corporation . 25% 40% America’s Home Place . 10% 8%

John Wieland Homes 50% 43% 38% Knotts Builders . 5% 8%

Toll Brothers 45% 33% 38% NVR Homes . 13% 8%

M/I Homes 35% 55% 38% Bailey’s Glen . 10% 5%

David Weekley Homes 38% 35% 33% Lockridge Homes . 5% 5%

Shea Homes 43% 40% 30% Legendary Communities . 3% 3%

True Homes 10% 30% 28% Timberstone Homes . 3% 3%

Standard Pacific Homes 8% 20% 23% Bains Farm Inc. . 0% 0%

Essex Homes . 43% 23% Compass Building & Realty . 10% 0%

Niblock Homes . 23% 23%

Builder Awareness: Baltimore-Towson

56

Maryland

Baltimore, Towson

Builder Awareness (% Aware): Baltimore-Towson


Ryan Homes 86% 76% 90% Baldwin Homes . 22% 17%

Ryland Homes 86% 70% 73% Centex Homes 28% 14% 15%

Toll Brothers 56% 49% 51% Del Webb Corporation . 11% 15%

NV Homes 44% 49% 44% Sturbridge Homes 11% 11% 12%

Beazer Homes 42% 24% 39% Advantage Homes, LLC . 8% 12%

Lennar Homes 58% 59% 39% Bob Ward Companies . 32% 12%

Bozzuto Homes 53% 30% 37% Mitchell & Best Homebuilders . 0% 7%

Koch Homes 14% 16% 32% Weyerhaeuser Real Estate . 3% 7%

K. Hovnanian Homes 42% 27% 29% Williamsburg Homes 19% 14% 5%

Winchester Homes 28% 16% 24% M/I Homes 3% 11% 2%

D.R. Horton . 16% 24% Basheer & Edgemoore . 3% 2%

Richmond American Homes 22% 16% 22% Zahler Construction &

Development . 0% 2%

Gemcraft Homes . 41% 20%

Base: Those in MSA, (Baltimore, Towson, MD, Wave 1 Prospect 36; Wave 2 Prospect 37; Wave 3 Prospect 41) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Colorado

Denver, Aurora

Builder Awareness: Denver-Aurora, CO

57

Builder Awareness (% Aware): Denver-Aurora


KB Home 74% 50% 79% Century Communities 28% 20% 29%

Richmond American Homes 56% 50% 69% J.F. Shea Co. . 20% 29%

Lennar Homes 49% 45% 64% Berkeley Homes . 15% 26%

Ryland Homes 56% 38% 60% Village Homes 28% 18% 19%

DR Horton 67% 50% 55% Del Webb 28% 18% 19%

Shea Homes 49% 43% 52% Brookfield Homes . 8% 19%

Pulte Homes 54% 38% 50% Taylor Morrison 26% 13% 12%

Toll Brothers 23% 25% 40% Alpert Signature Homes . 8% 5%

Centex Homes 38% 40% 38% Celebrity Communities . 10% 5%

Meritage Homes 26% 38% 38% High Point . 8% 5%

Oakwood Homes 33% 33% 36% Carapace Homes . 8% 2%

David Weekley Homes 26% 25% 31% Verona Building Co. . 5% 2%

Standard Pacific Homes 21% 18% 31% 9300 East Florida . 5% 0%

Base: Those in MSA, (Denver, Aurora, CO, Wave 1 Prospect 39; Wave 2 Prospect 40; Wave 3 Prospect 42) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Minnesota & Wisconsin

Minneapolis, St. Paul,

Bloomington

Builder Awareness: Minneapolis-St. Paul-Bloomington

Builder Awareness (% Aware): Minneapolis-St. Paul-Bloomington

Builder 2012 2013 2014


Ryland Homes 62% 58% 67%

Rottlund Homes 74% 58% 56%



DR Horton 31% 28% 33%

Key Land Homes 28% 20% 26%

K Hovnanian Homes 26% 20% 21%


Mattamy Homes 8% 15% 15%

LDK Builders Inc 10% 3% 13%

Capstone Homes Inc 13% 8% 8%

Colfax Companies . 5% 3%

Base: Those in MSA, (Minneapolis, St. Paul, Bloomington, MN-WI, Wave 1 Prospect 39; Wave 2 Prospect 40; Wave 3 Prospect 39) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…? 58

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=_k_4FCy_4djKPM&tbnid=hRsZSjFkgIEstM:&ved=0CAgQjRwwAA&url=http://www.uniquelyminnesota.com/activities/mn-landscape-arboretum.htm&ei=Y_znUaamCqmfyQH-hICIDg&psig=AFQjCNE3ZjXsWL1hzRq8ToUGY1QuMSIsIg&ust=1374244323233885

Builder Awareness: St. Louis, MO

59

Builder Awareness (% Aware): St. Louis

Builder 2012 2013 2014

McBride & Son Homes 89% 83% 92%

Fischer & Frichtel 51% 40% 46%

McKelvey Homes 27% 38% 36%



Lombardo Homes . 20% 23%

Payne Family Homes 8% 13% 21%

Consort Homes 3% 10% 18%

Rolwes Homes . 23% 18%

Benton Homebuilders 0% 8% 10%

Fulford Homes 5% 3% 10%

Flower and Fendler . 3% 8%

Ivie League Homes 0% 3% 5%

CMS Homes . 3% 5%

Del Webb . 10% 5%

Huntington Chase Homes & Development

5% 0% 3%

Bridgewater Communities . 3% 3%

Cannon Builders . 3% 0%

Missouri

St. Louis

Base: Those in MSA, (St. Louis, MO-IL, Wave 1 Prospect 37; Wave 2 Prospect 40; Wave 3 Prospect 39) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness (% Aware): Nashville-Davidson-Murfreesboro- Franklin

Builder 2012 2013 2014

Fox Ridge Homes 51% 75% 70%

Beazer Homes 63% 78% 68%

Ole South Properties 34% 25% 58%

Drees Homes 46% 70% 50%



The Jones Company 54% 58% 40%

Goodall Homes 23% 28% 38%

Signature Homes 23% 18% 25%

Regent Homes 34% 10% 20%

Turnberry Homes 9% 15% 20%

Phillips Builders 31% 25% 18%

Ryan Homes 9% 25% 15%

John Wieland Homes 17% 13% 15%

America's Home Place . 10% 8%

NVR . 8% 8%

Dock Street Communities . 0% 3%

Lockridge Homes . 13% 0%

Builder Awareness: Nashville-Davidson-Murfreesboro- Franklin, TN

60

Tennessee

Nashville, Davidson,

Murfreesboro, Franklin

Base: Those in MSA, (Nashville-Davidson, Murfreesboro, Franklin, TN, Wave 1 Prospect 35; Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Portland, OR

61

Portland

Oregon

Builder Awareness (% Aware): Portland

Builder 2013 2014

DR Horton 53% 65%

Arbor Custom Homes 63% 58%

Renaissance Custom Homes 50% 53%

Centex Homes 45% 33%

New Tradition Homes 18% 28%

Lennar 30% 20%

Pacific Lifestyle Homes 28% 18%

Polygon Homes 30% 13%

Manor Homes 30% 13%

Pulte 13% 13%

Stone Bridge Homes NW 23% 10%

Aho Construction 10% 8%

Portland Homebuilding 18% 5%

Olin Homes, LLC 8% 5%

Garrette Custom Homes 10% 5%

Hoffman Brothers 15% 5%

TA Liesy Homes 5% 3%

Icon Construction & Development, LLC 8% 0%

Base: Those in MSA, (Portland, OR, Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Indianapolis, IN

62

Builder Awareness (% Aware): Indianapolis

Builder 2013 2014

Beazer Homes 88% 83%

The Ryland Group, Inc. 75% 80%

Centex Homes 63% 68%

Arbor Homes 83% 63%

M/I Homes 75% 63%

Pulte Homes 63% 48%

The Drees Company 50% 38%

Del Webb Corporation 13% 33%

The Fischer Group 20% 28%

Westport Homes 28% 25%

Paul Shoopman Homes 15% 18%

David Weekley Homes 15% 15%

NVR 3% 5%

Lockridge Homes 5% 5%

Indiana

Indianapolis

Base: Those in MSA, (Indianapolis, IN, Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Salt Lake City, UT

63

Builder Awareness (% Aware): Salt Lake City

Builder 2013 2014

Ivory Homes 97% 95%

Garbett Homes 59% 76%

Holmes Homes 49% 56%

Perry Homes 51% 56%

Henry Walker Homes 49% 54%

Richmond American Homes 46% 44%

Fieldstone Homes 54% 44%

DR Horton 41% 41%

Woodside Homes 33% 20%

Bach Homes of Utah 18% 15%

City Creek Reserve, Inc. 15% 15%

David Weekley Homes 0% 5%

Home Center Construction 5% 2%

J. Thomas Homes 10% 2%

GCD Inc 0% 0%

Utah

Salt Lake City

Base: Those in MSA, (Salt Lake City, UT, Wave 2 Prospect 39; Wave 3 Prospect 41) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Builder Awareness: Columbus, OH

64

Ohio

Columbus

Builder Awareness (% Aware): Columbus

Builders 2013 2014 Builders 2013 2014

M/I Homes 90% 93% Virginia Homes 38% 15%

Dominion Homes 88% 90% Bedford Place 13% 10%

Rockford Homes Inc. 75% 73% Westport Homes, Inc. 23% 13%

Maronda Homes 65% 65% K.Hovnanian Companies, LLC 15% 8%

Schottenstein Real Estate Group 78% 60% Crown Properties 10% 5%

Ryan Homes 65% 50% America's Home Place 8% 3%

Schumacher Homes 53% 43% Legendary Communities 0% 3%

Wayne Homes - Ohio 48% 33% NVR 3% 0%

Fischer Group (The) 25% 30% Crown Communities Inc. 8% 0%

Epcon Communities 28% 23% BOYL 0% 0%

Homewood Homes, Inc. 38% 15% Pathway Homes 3% 0%

Base: Those in MSA, (Columbus, OH, Wave 2 Prospect 40; Wave 3 Prospect 40) ● Q23: Think about home builders in your area. Which company first comes to mind? Q23a: Which other home building companies can you name? Q24: Are you aware of…?

Appendix

Additional detail

We calculate New vs. Existing “Preference” based on stated interest in each option

66

When looking for your new home, how strongly will you consider each of the following home choices?

New home by builder: 0 to 10

- Existing home: 0 to 10

= Difference: -10 to +10

-10 to -1 = Prefer Existing 0 = Indifferent +1 to +10 = Prefer New

4% 1%

3% 2% 3% 7% 6% 6% 7% 7%

35%

6% 6% 3%

1% 2% 0% 1% 0% 0% 1%

0%

10%

20%

30%

40%

-10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10

44% Existing Segment

20% New Segment

35% Indifferent Segment

Base: All, Prospects (Wave 3): 1,236 ● Q17: When looking for your new home, how strongly will you consider each of the following home choices?

Appendix

Tracking

Why these metrics?

Base: All, 1,236 ● Q17: When looking for your new home, how strongly will you consider each of the following home choices? (Scale 0 to 10, 0=‘Will Not Consider’ while 10 = ‘Will Strongly Consider’)

Mean Consideration: Using the mean will allow us to capture movement throughout the range of consideration rather than movement into a higher threshold (e.g., top 2 box, top 5, etc.), which makes this a more sensitive measure. Sensitivity is critical in evaluating whether messaging projects have had an impact. Additionally this metric requires little explanation and can be easily shared. Consideration Ratio: This ratio will provide an indication about the relationship between people’s consideration of “Existing” versus consideration of “New” (e.g., a score of 1.0 indicates that consideration is equivalent). Using these metrics together will provide an initial indication of performance and then shed more light onto overall consideration. With both metrics we will know whether the consideration “tide” is higher, lower, or the same as the previous wave and whether people’s consideration is shifting from “Existing” to “New” or vice versa. For example, if the mean for “New” is higher and the ratio remains unchanged then we could conclude that people’s consideration for both has increased. The ideal situation would be if the mean for “New” is higher and the ratio number improves from this wave to the next, which would indicate a shift in consideration from “Existing” to “New”.

68

Other Metrics Considered

Base: All, 1,236 ● Q17: When looking for your new home, how strongly will you consider each of the following home choices? (Scale 0 to 10, 0=‘Will Not Consider’ while 10 = ‘Will Strongly Consider’)

% Preference for New: Preference is a less tangible measure of the necessary behavioral change than consideration. For example, while I would prefer to drive a Ferrari I likely will not consider purchasing one in my next vehicle purchase. The purpose of this campaign is to really influence people’s purchasing behavior. To do that effectively, the campaign will have to increase the likelihood that people place “New” in their consideration sets. % Top Box Consideration: These metrics are not sensitive to movements throughout the range of consideration. For example, if the campaign were able to move the universe that had a consideration score of a 3 to a 5 between waves that movement would not be reflected in this metric. Net Consideration (‘New’-’Existing’): First, this is a rather complex metric, which makes it more difficult to share without a detailed explanation. Additionally the margin of error gets compounded so small changes can get washed out. Finally, it doesn’t capture whether the change is a result of improving consideration for “New” or a decrease for “Existing” or vice versa.

69

Appendix

Demographics and Psychographics

Household Income %

$50,000 to $74,999 26

$75,000 to $99,999 27

$100,000 to $149,999 29

$150,000 to $199,999 10

$200,000 to $249,999 4

$250,000 or more 3

Demographics

71

Age % Prospects

25 to 29 15

30 to 34 22

35 to 39 14

40 to 44 11

45 to 49 9

50 to 54 10

55 to 59 7

60 to 64 7

65 and over 5

Gender %

Male 46

Female 54

Education %

High School Graduate or Equivalency 1

Some College (Less than 2 years) 10

Some College (More than 2 years) 8

Associate's Degree 8

Bachelor's Degree 43

Graduate or professional Degree 31

Base: All, Prospects (Wave 3): 1,236 ● Q1: Indicate the category into which your age falls. Q2: Are you…? Q3: What was the last level of education that you completed? Q7: What is your marital status? Q8: Which of the following best describes your employment status? Q26: Does your household support any dependent children, either living with you or living elsewhere? Q4: What was your household’s total annual income before taxes in 2011? Q5: Are you of Hispanic, Latino, or Spanish origin? Are you of Hispanic, Latino, or Spanish origin? Q6: What is your race? Select all that apply.

Marital Status % Prospects

Married or living with Partner 75

Divorced/Separated 8

Single 16

Widowed 1

Employment Status % Employed full-time 76

Retired 9

Employed part-time 6

Stay-at-home parent or homemaker 6

Unemployed 1

College student 1

Children %

Have dependent children 42

Hispanic Origin % Prospects

No, not of Hispanic, Latino, or Spanish origin

94

Yes, another Hispanic, Latino, or Spanish origin

2

Yes, Puerto Rican 2

Yes, Mexican, Mexican American, Chicano

2

Yes, Cuban 0

Race %

White 83

Black or African American 7

Chinese 3

Asian Indian 3

Korean 1

American Indian or Alaska Native 2

Some other race 3

33

22

23

20

10

6

48

51

43

44

43

29

20

27

33

36

47

65

0% 25% 50% 75% 100%

I like control over people and resources

I would pay more for environmentally friendly products

I enjoy showing off my home to guests

Home decor is of particular interest to me

I am always looking for new ways to live a healthier life

Spending time with my family is my top priority

% of respondents

Prospects

Disagree (%0-4)

Mixed (%5-7)

Agree (%8-10)

Spending time with family is a top priority for two-thirds of prospects

72 Base: All, Prospects (Wave 3): 1,236 ● Q25: How much do you agree or disagree with each statement?

In terms of location, half would prefer a home in the suburbs

2 2 3 5 9 6 5

7 8

13 13 11

20 20 22

54 49 50

0%

25%

50%

75%

100%

2012 2013 2014

Prospect Location Preference

Suburban Area; Closerto Urban Area

Outlying Suburban Area

Heavily PopulatedUrban Area

Small Town

Rural Area

No preference

73 Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q19: In which type area would you prefer to buy a home? Confidential

Importance of Attributes by Prospect Segment by Wave

74 Base: Prospects. Wave 1 (Indifferent, 343; Prefer New, 184); Wave 2 (Indifferent, 441; Prefer New, 218); Wave 3 (Indifferent, 438; Prefer New, 249) ● Q21: For each attribute below, please indicate the extent to which you believe existing and new homes differ.

2012 Indiff. Segment



2012 New Segment

2013 New Segment

2014 New Segment

Mean Importance Existing is better

New is better

Existing is better

New is better

Existing is better

New is better

Existing is better

New is better

Existing is better

New is better

Existing is better

New is better

Lower cost per square foot 24 23 31 22 26 21 22 29 21 32 27 29

Lower maintenance costs 6 62 5 61 5 63 8 64 5 66 4 68

More living space 7 36 10 41 12 38 7 50 8 40 8 43

Less living space 26 12 22 14 25 17 20 21 27 14 23 16

Proximity to good schools 10 11 15 11 12 15 22 16 12 19 15 21


15 13 16 16 14 18 18 21 8 19 14 23

Safer neighborhood 8 20 11 22 11 24 10 32 5 33 7 32

Character/Uniqueness of home 28 20 36 18 34 21 17 31 20 33 21 31

Convenient to work 12 12 16 12 14 12 20 16 5 19 14 18

Convenient to friends/family 10 10 13 10 11 13 15 16 9 14 10 20

Larger yard or lot 40 16 42 18 44 13 35 22 41 23 37 21

Established neighborhood 56 5 56 7 56 9 51 14 45 14 46 12

Ability to customize house 3 65 4 65 5 66 4 73 4 69 5 73

Community amenities 8 34 6 41 7 42 10 41 7 44 8 43

Quality of Construction 22 31 22 33 24 32 13 55 12 53 14 51

Architecture/Overall design 13 33 14 37 13 37 7 54 4 54 10 46

Better floor plans for me and my family 3 54 4 53 4 57 5 66 1 65 2 72

Energy efficiency 2 79 2 82 2 79 1 81 0 80 2 80

Sense of community within neighborhood 34 9 38 9 33 10 31 15 25 17 31 15

Mature trees & landscaping 66 5 66 8 65 8 54 9 56 12 57 12

Prestige/Exclusivity 10 25 12 32 10 32 14 31 8 37 10 33

Storage Space 9 35 10 42 9 42 11 46 7 41 10 43

Appendix

• Home Consideration

• What types of homes do shoppers consider?

• What types of construction (existing, new) are shoppers considering?

• How do perceptions of new and existing homes differ?

In general, prospects are more likely to consider buying an existing home

5 18

39 19

30

26

76

52 35

0%

25%

50%

75%

100%

Existing home Brand new home offeredby builder

Custom build on own lot

% o

f re

spo

nd

ents

Will Consider (%8-10)

Mixed (%5-7)

Will not Consider (%0-4)

Base: All, Prospects (Wave 3): 1,236 ● Q17: When looking for your new home, how strongly will you consider each of the following home choices? Q17a: Which type of home do you prefer?

46% 31% 24% Preference

Prospective Buyers

Types of Home Construction Preference & Consideration

76

Prospects are nearly evenly split between their preference for an established neighborhood vs. existing subdivision vs. new community

25 24 27

42 39 39

33 37 34

0%

25%

50%

75%

100%

2012 2013 2014

% o

f re

spo

nd

ents


Existing subdivision of newer homes

New home communities

Types of Home Construction Preference & Consideration

This trend remains consistent year-over-year

Base: All, Prospects (Wave 1): 984, (Wave 2): 1,234, (Wave 3): 1,236 ● Q22: Which type of community do you prefer? 77


Convenient to shopping/entertainment/ac

tivities

Convenient to work

Storage space




Community amenities




Less living space

.0

2.0

4.0

6.0

8.0

10.0

12.0

Other Considerations for Home Purchase

2012 New Segment

2012 Indifferent Segment

2013 New Segment

2013 Indifferent Segment

2014 New Segment

2014 Indifferent SegmentAverage

Convenience to work and good schools has increased in importance among the ‘New Segment’ year-over-year

Considerations among the ‘Indifferent Segment’ remain fairly consistent

78

Base: Wave 1 (Prefer New, 184; Indifferent, 343); Wave 2 (Prefer New, 218; Indifferent, 441), Wave 3 (Prefer New, 249; Indifferent, 438) ● Q20 Chart displays the mean importance score for each item. Maximum Difference utilities are converted into ratio-scaled probabilities that sum to 100 across the items. Thus an item with a score of 10 is twice as important as an item with a score of 5. The dotted line represents the average (4.5). INTERPRET WITH CARE – MEAN VALUES HIDE HETEROGENEITY OF PREFERENCE AND MAY BE SKEWED BY OUTLIERS.

Mea

n im

po

rtan

ce

How has the market evolved over the past 12 months?

How have prospects changed?

After last year’s economic improvements shifted the profile of the typical prospective buyer, the profile has now shifted back to closer align with how prospects looked in 2012—slightly more educated, more affluent, and older

• Compared to 12 months ago, fewer prospective buyers are buying a home for the first time, suggesting that the prospective buyer is now moving on from their starter home

• As a result, more shoppers currently own their home, which are single family detached homes, and are looking for their next move

How have elements of the buying process changed (or stayed the same)?

Goals of home ownership: Family, financial investment, and privacy remain top goals

Top triggers: Market conditions and boredom with current home remain top individual triggers, though favorable market conditions as a trigger has declined dramatically

• 49% of today’s prospective buyers indicate some form of change in family size as a trigger compared to 51% in 2013

Expected timeline: Shoppers are still taking their time with their purchase and uncertainty exists about when they will buy

Budget: Prospective buyers plan to spend slightly more compared to 2013

Top information sources: Prospects continue to use a variety of sources; National Real Estate listing websites continue to increase in use, as well as social media (though this is the lowest rank source)

Use of realtors: Realtors remain critical in the process • Prospective buyers recognize all of the ways in which a realtor will help, particularly with negotiating price, finding homes that meet

clients’ specifications, and drafting paperwork

Performance of existing homes: Existing continues to dominate on expected measures: mature trees, established neighborhood, larger lot, community, character, etc.

Performance of new homes: New has maintained its performance on many areas, including energy efficiency, ability to customize, lower maintenance, costs, better floor plans, etc.

• New homes have lost ground on “quality”—while the proportion of prospective buyers who recognize quality in new homes is stable, more prospective buyers recognize quality in Existing homes compared to 2012 AND 2013

2014 home shopper insights study - bdx-portal - …...san francisco/san jose, ca 4 *rating of at...

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