Sample Communications Plan

FY22 Strategic Communications Plan • Research • Audiences • Messaging • Campaign Brief • Channel Plan • Addendums

Prepared by the NRHA Communications Department June 28, 2021

Introduction FY22 begins with some major successes behind us (record-setting loan volume = more families assisted than ever!) and an unknown path ahead. Together, with our financial, lender and real estate partners, we will continue to navigate an unprecedented homeownership environment. Purchasing a home in this market isn’t impossible for low- to moderate-income homebuyers, but it is faced with challenges of low inventory, high home prices and competing cash buyers. These challenges give the Home At Last brand all the more reason to ensure it is top of mind among our various audiences. Home At Last doesn’t simply offer assistance -- it provides a unique offering, a blend of reliability, access, guidance and hope. This year’s marketing efforts by the NRHA Communications Department and the Home At Last Business Development team must take into consideration the nature of the market, the challenges homebuyers and partners are up against, and meet them where they are financially and emotionally.

This plan emcompasses a bit more than previous years’ plans due to the fact that COVID changed our landscape for the foreseeable future. The Communications team has dug into local and national secondary research, tapped into our primary data from our digital efforts and has intentions to continue to collect information from our homebuyers and partners to ensure our messaging and approaches meet them where they are. With information in hand, we’ve explored our audiences by way of personas, giving us an opportunity to better visualize exactly who we’re aiming to reach and drive to act. With a hazy road ahead, research and information are the keys to smart, marcomm decisions about messaging, channels and overall approaches.

This plan is intended to walk hand-in-hand with the Home At Last business development plan toward reaching the program’s loan volume and engagement goals.

What We Know (The Research) SWOTL A SWOT analysis is an appropriate place to begin our research for this year’s plan, but as the team discussed how it could and should be organized, we realized we needed an extra quadrant to outline the Landscape in which the Home At Last program operates -- and SWOTL was born. An addendum is included with this plan document with additional research references.

Strengths: • • • • • • •

HB: Being a trusted and reliable source for homebuyers/affordable homeownership opportunities in rural Nevada Reliable network of lender and real estate partners Local governmental agency behind all program decisions HB/L/R: Assistance options Low interest rates DPA MCC

Weaknesses: • • • •

L/R: Awareness among lender and real estate partners Waned awareness among those who know us/used to do more business with us No awareness among those who don’t know us HB: Reaching more eligible homebuyers who are not aware of HAL

Opportunities: • • • • • • • • • • • •

L/R: Shift perceptions of DPA opportunities via program basics education HB: Renew hope among potential low- to moderate-income homebuyers with HAL L/R: Growing networks of realtors and lenders HB: Targeted millennial push Pulled from millennials on “Those Darn DPA’s;” based on research, millennials believe: 65% of prospective buyers believe they need at least 15-20% down 76% have little to no familiarity with low down payment programs Homebuyer aren’t familiar with industry terms and guidelines Millennials always search before doing anything, including buying a house, but every homebuyer is not the same, they need to seek out professionals Renting isn’t cheaper than buying: With prices so high, many people are concerned about affordability.

But Martinez said when you compare the price of rent with the price of a monthly mortgage, it might make a lot more sense for people who are renting to buy a home.

A homeowner’s net worth is 45 times that of a renter’s - this is how you build generational wealth HB: Refinancing with access to affordable credit

What We Know (The Research) Threats: • • • • • • • • • • • •

HB/R/L: Stigma around DPA/assistance programs Confusion about Down Payment Requirements (“It’s not for me; it’s for low-income people.”)

Millions of homebuyers are sidelining themselves HB/R/L: In the midst of a “sellers’ market” Low inventory, undersupplied market Peak selling season (high home prices, record-high median prices) Cash buyers (Reno ranks #1 in all-cash home purchases) HB/R/L: Housing demand rebound continues much faster than the supply recovery HB/R/L: With buyers active in the market because of the uptick in mortgage rates, homes are selling quickly HB/R/L: California buyers HB/R/L: High appreciation rates for houses When housing prices appreciate too quickly, it can push entry-level home buyers out. Need appreciation levels to even out to single and not double digits.

Landscape: National • • • • •

Interest rates are increasing.

Drop in refis compared to a year ago.

Delinquency rate closer to pre-pandemic levels (low).

40% fewer homes on the market than last year.

Cash sales have increased from 18% to 23% in the past year.

Nevada • • • • • • • • •

Cash offers and overbidding are creating major challenges for low- to moderate-income buyers.

The Southern Nevada market, which includes Pahrump, reached a record-setting median home price of $385,000, up 22.2% from the same time a year earlier when the median price for single family homes was $315,000 in the valley.

Incomes in Nevada fell 3.8 percent in 2020, largely because of the pandemic and the state’s reliance on the hospitality industry. Nationally, incomes grew at almost five percent, the largest gain in 20 years.

Time on the market in Nevada is 32 days faster than last year.

New listings notched an 8% gain in price compared to this time last year.

Nevada is moving into the 8th consecutive week of increases over last year.

Total active inventory or homes for sale on the market remains 51 percent below this time last year.

New homes for sale increased 3.9 percent, the largest monthly increase since July 2014.

In Reno-Sparks, the median home price is up 16 percent and Las Vegas is up about 13.8 percent from a year ago.

What We Know (The Research) Landscape Messaging Samples

What We Know (The Research) Landscape Messaging Samples

What We Know (The Research) HAL-Eligible Property Inventory (Source: Realtor.com) •

Elko County • 53 active listings (Realtor.com) • 185 homes sold since December 11, 2020 • 62 homes were HAL (eHousing) • 53 were first time buyers

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Churchill County • 19 active listings (Realtor.com) • 246 homes sold since December 11, 2020 • 25 homes were HAL (eHousing) • 25 were first time buyers

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Carson City • 26 active listings (Realtor.com) • 447 homes sold since December 11, 2020 • 19 homes were HAL (eHousing) • 19 were first time buyers

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Lyon County • 70 active listings (Realtor.com) • 814 homes sold since December 11, 2020 • 129 were HAL (eHousing) • 128 were first time buyers

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Douglas County • 26 active listings (Realtor.com) • 363 homes sold since December 11, 2020 • 14 were HAL (eHousing) • 14 were first time buyers

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Nye County • 116 active listings (Realtor.com) • 273 homes sold since December 11, 2020 • 23 homes were HAL (eHousing) • 23 were first time buyers

What We Know (The Research) Reaching Communities of Color Disparities amplified by the COVID-19 pandemic between households of color and white households remain front and center. Those include shortages of housing near jobs, affordable housing, and starter homes and widening racial inequalities around ownership, access, and wealth. Income inequality contributes to the disparities in homeownership, with the median income of white households ($71,000) some 65 percent higher than Black households ($43,000) and nearly 30 percent higher than Hispanic ($55,000) households. With interest rates near historic lows, downpayment assistance programs would give a substantial lift to homeownership rates among households of color with insufficient savings. As a recent Joint Center analysis concluded, a $15,000 income-targeted assistance program could help as many as 1.0 million Black renters and 470,000 Hispanic renters buy homes.

Black Homeownership Opportunity • • • • • • • • • •

There is a need for financial education, but also a positive confidence building data to show “where there is a will, there is a way.”

Focus on counseling from financial perspectives with enthusiasm and confidence.

Encourage minorities no matter what and give alternative options if they get stuck so they always feel there are options to make things work.

We need to understand Black culture: listen and move the needle because we can use the things that they find as issues and find ways to fix these issues for them with resources.

Purchasing a home does not mean that you can’t own a car and have student loan debt.

Combat the myth that you do not need 20% down; education about no/low-percentages of down payments to get into a home (without wiping savings).

Focus on the relationship between minority community and lenders to show that they are able to qualify for these loans; make sure they qualify when they can to make sure minorities do not face any discrimination.

From Black Homeownership zoom program, Home Free USA: 96% success rate for anyone who works with Home Free (perhaps show success rates for HAL).

We need more positive: typically surrounded by negativity = parents foreclosed home, denied for credit, etc.

Self-efficacy helps build confidence and success rates.a

What We Know (The Research) Latinx Homeownership Opportunity • • • •

• • •

• • • •

• •

Close to half of Latinx households in the U.S. own their home, the highest share since the Great Recession of 2008.

Latinx homeownership gains have outpaced that of other groups since mid-decade lows brought on by the Great Recession.

Wealth disparity and higher rates of mortgage denials continue to be barriers for Latinx home buyers.

Latinx Americans are a massive and diverse group, with more than 200 unique ancestry among the 60 million who live in the U.S., and their homeownership gains in recent years have far exceeded those of other groups. About 18% of the U.S. population identifies as Latinxiii, yet they have accounted for more than 60% of new U.S. homeowner gains over the past decade. That growth has brought the Latinx homeownership rate to 48.9%, the highest level since 2008.

According to the online real estate company Zillow, the denial rate in Nevada for Hispanic applicants was 12% in 2017, compared to 9% for all applicants.

According to NAHREP (National Association of Hispanic Real Estate Professionals, https://nahrep.org/ shhr/) Nevada’s hispanic homeownership rate is 47.5%.

“Hispanic homeownership is vital to economic strength of local communities across the nation and is predicted by housing experts to account for 70% of homeownership growth over the next 20 years,” said 2021 NAHREP President Sara Rodriguez. “NAHREP’s tool provides a never-before-seen view of Hispanic homeownership that can be useful to policy makers and housing advocates.”

Experts expect the homeownership trend to continue because Latinx are passionate about homeownership and the youngest demographic in the country, with an average age of 29 years (currently).

The average latino is entering prime homebuying years.

Homeownership is one of the most accessible vehicles for building generational wealth and a key indicator of community resiliency.

LATINOS HAVE LESS STUDENT DEBT: In 2019, 17.6 percent of Latinos 25 and older held at least a bachelor’s degree, among the lowest rate of college attainment in the country. At the same time, Latino households owe the least amount in student loans, a median of $17,600 owed vs. $30,000 for Black students and $23,000 for non-Hispanic White students, offering a partial explanation for why some Latinos can purchase a home at a younger age.

There are 8.3 million Latinos aged 45 and under with the credit characteristics to potentially qualify for a mortgage. These “mortgage-ready” Latinos create substantial opportunity for additional homeownership growth over the next few years.

While Latinos tend to be concentrated in high-cost areas, the growth is taking place in non-traditional markets as Latinos are willing to relocate to areas rich with housing and employment opportunities

What We Know (The Research) Digital Reporting Digital marketing channels afford the Home At Last brand not only exposure but the metrics we can continue to use to learn more about our target audiences. Digital advertising will continue to be a key component of our plan, and we’re highlighting the below metrics to show what we know about those who are already engaged with our brand so that we can go after more like-minded targets. The latest, full digital report is provided with this plan as an addendum.

• •

Data from Google Analytics shows a 5% increase in sessions across all HAL pages compared to the previous quarter.

However, data from Google Analytics shows a 3% decrease in sessions across HAL pages compared to March-May 2020.

We’ve also seen a decrease in total homebuyer enrollments in HAL U. While nearly 1,000 enrollments in the past quarter is noteworthy, we still take stake in the decrease and aim to understand the drop-off.

Much of the above market research points to some of the reasons. And while quantity has decreased, we have seen an uptick in our attribution to our paid marketing efforts.

• • •

11% decrease in total enrollments compared to March-May 2020 (1099 total enrollments vs 980 enrollments between March-May 2021) 22% of enrollments can be attributed to marketing activities 5% increase compared to previous quarter (17%)

Digital data is a crucial tool in our channel planning, and the below points have been considered for the FY22 channel recommendations. Granted, these sources are digital only and don’t point to a direct correlation of our other channels such as broadcast and outreach. However, we believe it is a “drumbeat” of messages that helps keep HAL a top-of-mind brand among our audiences. Note the significant increase in email engagement; this is a result of not only improved performance but also of simply pushing more campaigns over the last quarter. However, it still points to an undying need to include email in the channel mix.

Channel Sessions compared to previous quarter: • • • • • •

Organic Search: Direct: Paid Search: Email: Referral: Social:

- 2% + 1% - 7% + 74% - 24% + 4%

HAL U provides valuable insight into those who have at least engaged with us via our homebuyer education platform. We can take these insights to learn more about the most likely candidates for homeownership and who they are throughout our state. Since HAL U launched in the summer of 2019, we have “graduated” nearly 10,000 students, which is an 82% rate (enrollees/those who finished the course).

YTD graduation rate is 77%, showing a slight decrease since January 2021.

What We Know (The Research) Demographic data from HAL U helps us back our recommendation to focus on the millennial audience; secondary research shows this group is the most homeownership-ready of any group and our HAL U numbers show this is who has also been attracted to our program information.

• • •

43% of HAL U enrollees are 25-34 years old 66% have more than $10k in student loan debt, which is consistent with the national research showing student loan debt is the biggest barrier to homeownership for this generation 70% of our enrollees indicated that they were not already working with a lender, which is a surprising fact. Soon after HAL U’s launch, we saw the majority of our enrollees being referred by a HAL-approved lender. Now, the vast majority are coming to the tool without having already met with a lender.

Race and ethnicity composition is another data point we aim to glean from our HAL U enrollees, which helps us connect the dots between what we know about diversity groups throughout our jurisdiction and national research.

• • • • • • • •

According to the most recent ACS, the racial composition of Nevada was: White: 65.59% Other race: 10.26% Black or African American: 9.12% Asian: 8.15% Two or more races: 4.93% Native American: 1.28% Native Hawaiian or Pacific Islander: 0.67%

The below graph shows the racial composition of the HAL enrollees. Note the alignment of some categories -- this shows that our homebuyer education has attracted nearly 5% more Black or African American Nevadans compared to the total percentage of the state population. It’s important to note that in both data sets, Latinx is included in the white category.

What We Know (The Research) Another culturally diverse population we aim to address through our advertising and serve through our programs is the Latinx community. Approximately one third of Nevadans are Hispanic, and our 32% Hispanic HAL enrollees number aligns, showing that this growing group is interested in what Home At Last has to offer and our efforts must adequately meet the needs of the Latinx. The secondary research also points to the great opportunity for homeownership that this segment has in the state of Nevada.

What We Don’t Know Our research to date is important, but not stagnant -- we will continue to evaluate our digital metrics via campaign performance and keep our finger on the pulse of a potentially changing market. Primary research will also be useful as we home in on our audiences and their needs. Some channels and tactics may include: Adjusting HAL U registration questions for homebuyers, lenders and realtors to ask them more pointed questions about where they’re at in the homebuying process, gauging sentiment, etc.

We would like to conduct a homebuyer-focused survey (blind) on Facebook approximately mid-way through the campaign to gauge awareness and sentiment. We could potentially do this blindly (e.g. not under the Home At Last guise) via the Nevada Housing Coalition account.

Ongoing 1:1 discussions with partners will continue to provide insights into the market. Lender and real estate partner meetings and lunches via the business development specialist will prove useful, especially this year as it unfolds.

Audiences Our research leads us to a place of understanding our people, and not simply as a label. In order to motivate our targets to take action, we need to dig into their heads and hearts, getting at what makes them tick, what they value, what they fear and what may get them to take a first step.

While our research points us to the millennial audience as the “lowest hanging fruit,” we understand there are more to serve than just them. The below personas highlight this group of likely engagers and point us in the right direction.

At the most basic level, personas allow us to personalize or target our marketing for different segments.

For example, instead of sending the same lead nurturing emails to everyone in our database, we can segment by buyer persona and tailor messaging according to what we know about those different personas. When utilized correctly, buyer personas can allow us to produce highly targeted content that leads to a higher influx of new and repeat customers who are pre-qualified by data.

Here, we have categorized our persona groups by Homebuyers, Lenders, REALTORS and Rural Communities and asked the important questions (and answers) that help inform our messaging and channel plans: • • • •

Who is this person? (demographics, geographics, psychographics) What do we want them to do? (action) How will we get them to do it? (strategy) Where should we tell them about it? (channels)

Homebuyers

Meet Ready-to-Roll Raquel Raquel is a millennial (potentially the most viable cohort in the homebuying space due to the spending power), and like many millennials, she feels a bit cheated in the homebuying arena. She kind of ascribes to the “the Boomers screwed us” mantra and feels pretty much the same about the Californians coming in with cash. She thinks she’s almost there when it comes to homeownership, but feels like she can’t quite do it. She and her partner are gainfully employed but each have a bit of student loan debt. They’ve heard rumors that they can’t get a loan with outstanding loans. She’s also heard a ton about the crazy home prices and low inventory.

Personally, she values experience over things, but certainly thinks a lot about turning those home Pinterest boards into realist. While she may not be super in the rural lifestyle, she also doesn’t really know what that could look like -- her family might be more into a townhome-style. She LOVES the idea of homeownership, though, and wants the truth when it comes to what’s actually possible for her. She wants credibility (like info. from a .org!).

We want Raquel to be patient and be ready. We also want her to know that we’re legit, we’re reliable and credible, and we can help her get there -- if she’s willing to do the work. We need her to realize that homeownership is something that can indeed happen for her, and that she should get positioned for when the time is right for her. The market won’t be nutty forever, and she’s gotta be ready.

We need to cater to her desire to get the facts (without a ton of fluff) and education about homeownership while also helping her maintain that vision of what her own home could look like. We also need to apply a bit of reality to her perspective by showing that there are indeed eligible properties out there (via an app and/or tailored email messaging?) and that we are helping homebuyers just like her get into a home of their own.

Meet Ready-to-Roll Raquel What should we say to her?

• • • • • • • • •

It’s not a long process if you’re prepared (and we’ll help you do that).

Don’t take yourself out of the game until you talk to us - there is hope!

We are a trusted and reliable source. We’ve got the accurate info. about how to get you into a home.

Don’t let lack of down payment stop you.

Not all homeownership journeys are the same and we recognize that.

We do know that renting isn’t cheaper than buying.

Stop paying someone else’s mortgage -- start building your equity A homeowner’s net worth is 45 times that of a renter.

You can start building wealth sooner than you think.

Raquel’s CTA: Complete our homebuyer education and then connect with our team that has the reliable, accurate information about resources available to you.

Homebuyers

Meet Really Rural Rob Rob … he’s really rural. He’s in his late 20s/early 30s and values wide open spaces, and he’s building a life that enables him to do what he wants, where he wants. He works for one of the mines and makes good money! But a lot of that money goes to debt payments on his toys (boat, RV, quad -- if it helps him hunt, fish and camp, he wants it!). He’s thought a little bit about buying a home one day (having even more space for his toys would be GREAT!), but isn’t sure what it would take to buy one. He wants to build a family some day, too, so settling down is attractive for him.

He tends to trust authority but only those who align to his more conservative and rural lifestyle. He’s got a Facebook account and checks it on occasion, but isn’t as connected digitally as others in his age group in different geographies. He watches TV (for sports, mainly) and listens to local radio. He also picks up the local newspaper to see what’s going on, and to check out the classifieds to see if there’s any gear for sale.

What should we say to him?

• • • • •

Rural life all the way, baby!

This program is for you, rural Nevada.

Homeownership is the #1 way to build personal wealth.

The journey to homeownership takes a little work, but is totally worth it.

We can help you get there (and keep some of your hard-earned cash).

Rob’s CTA: You love rural. We love rural. It’s time to get going on homeownership, and you can do it by talking to us.

Homebuyers

Meet Not-for-Me Natalie Natalie is a renter. Her parents are renters, her siblings are renters, her aunts and uncles and cousins are renters. Not only is she a generational renter who thinks homeownership just isn’t part of her path, but she thinks she’s far too young to even if she were thinking about buying something. She’s a little noncommittal, and thinks that even if she were to buy a house, the possibility is far, far off.

She trusts and relies on her network of friends and family for guidance and encouragement, and learns from those in her circle and in similar circumstances. She also works hard and wants to be sure she’s got a good financial path ahead … but she’s not exactly sure how to do it.

What should we say to her?

• • • • •

The path to homeownership looks different for everyone … if there’s a will, there’s a way, and we can help you get there.

We have the details you need about personal finances and building generational wealth through homeownership.

You have options through this program like down payment assistance and affordable interest rates.

Be confident and let us be your guide!

Our team of VIP lenders is ready to help and get you the right resources.

Natalie’s CTA: Homeownership is how you can build generational wealth and we’re a reliable source with the resources that can get you there. Connect with us.

Homebuyers

Meet Glorial & Emilio Gloria and Emilio haven’t owned a home in their lifetimes and never really thought it was something they’d be able to do. Their entire family is a family of renters, which is just fine, but they’ve heard about some down payment help they might be able to get, so now they’re intrigued. Hesitant, but intrigued. They speak Spanish with a little English here and there, so going to talk to an English-speaking representative may be a bit uncomfortable for them. Their children are encouraging them to move ahead, though, since they’ve worked hard their whole lives and they think they deserve some stability (never know when your landlord might sell or ask you to move on) and some longer-term wealth building, even at this stage in their lives.

What should we say to them?

• • • •

This program is for everyone!

We have experts in YOUR community who know our program and can help you each step of the way.

Programs like Home At Last can help you afford more home and have a shot at bidding in this hot market.

Homeownership is worth it!

Gloria & Emilio’s CTA: We have trustworthy, reliable people who know our programs and understand your situation. Let’s connect you with them and start!

Lenders

Meet Loyal But Lost Lisa A few years ago, Lisa was all about Home At Last. She was doing tons of loans and was a reliable partner.

We sent dozens and dozens of homebuyers her way. She’s mission-aligned, meaning that while she certainly is in the biz to get deals done, she also finds personal satisfaction in getting people into homes … especially those who never thought it’d be an option for them. Her personal mission aligns well with NRHA’s, which is why we’ve worked well together for so many years.

But Lisa disappeared! Maybe it was the pandemic? Maybe it was the hot housing market? Maybe a bit of both? We need to reengage Lisa, because while she may be off our radar, her drive to serve and do loans hasn’t changed, and she’s the type who would be open to us wedging ourselves back onto her radar. She knows the benefits of a DPA program like ours, we simply need to 1) remind her of them and 2) get her up to speed on anything new going on with HAL … like our growing marketing tools that help her grow her business. Also hyping up the fact that we know she wants to build loyalty among her borrowers so they come back to her when they’re ready to refi or upgrade … and having a tool like HAL is the perfect way to built that. Plus, this market won’t be like this forever, and if she’s aligned with HAL and knows the latest and greatest, she’ll be ahead of the crowd, ready to offer an indispensable tool, no matter what the market looks like.

What should we say to her?

• • •

Best for the best -- let’s get you reengaged with a program you know works for your borrowers.

Let’s connect, one-on-one, and get you up to speed.

We’ve got some killer marketing tools to help you attract even more borrowers and keep their loyalty for the long term.

Lisa’s CTA: Reignite your love for HAL and sharpen this tool in your toolbox, now and for the future. Kevin will be hitting you up!

Lenders

Meet New-to-the-Game Nathan Nathan is one of hundreds of new loan officers in the arena. He was always interested in the housing market and finally took the leap and became a loan officer. He’s optimistic (and should be as he kicked off his career during one of the most unique housing markets of all time!), and isn’t as jaded as some of his more seasoned counterparts may be. He believes in building opportunities for others, and also is pumped by the prospect of making some decent income.

What should we say to him?

• • • • •

You need to know about HAL and DPA as you’re growing your business.

Here are the basics…

DPA and MCC help make deals work and can help save them, too.

We’ve got you! Our team is super accessible and our training will help get you going quickly.

DPA is a #1 marketing tool for our VIP lender partners -- let’s get you onboard.

Nathan’s CTA: If you don’t know about us, you need to, especially as you’re growing your lending business and pipeline. Get trained and get going now.

Lenders

Meet Stigma Steve Steve’s been in the lending business for 25 years. He knows what he knows and doesn’t stray too far from his usual mode of his work. He’s heard about DPA programs like HAL, but doesn’t think *his clients* and *those clients.* What he doesn’t know is that our program assists incomes up to $135,000 and literally all walks of life. Let’s face it -- there’s an unsubstantiated stigma around using DPA for a client and he’s bought into it for years. “I don’t need to do DPA,” is his usual mantra, but he’s missing out on potential business … programs like ours help qualify for more, make deals happen and build a pipeline of business he wouldn’t have had otherwise. Affordable housing stigma has trickled its way into the homeownership realm, and it’s unjustifiable. HAL sees better (lower) delinquency rates than the national averages and we’ve done a LOT of business despite the pandemic.

What should we say to him?

• • • •

Ditch what you think you know about DPA -- we’ve got the real deal.

DPA programs help make deals happen and borrowers qualify for more.

Money is money, right? We help get good, responsible homebuyers into homes, period.

We’re tapping markets that you haven’t before, and we’ll help you grow your business by simply offering one more tool.

Steve’s CTA: DPA helps you tap new markets and grow business.

Realtors

Meet n00b Nora Nora’s new to real estate. She was doing some freelance-type work before the pandemic but when the world changed, she knew she needed to find something else that helped bring her income. She’d always thought real estate might be a good niche for her -- she’s great with people and has had a few sales jobs in her younger years. She decided to take the leap and get licensed, and boy is she glad she did … the housing market went berserk just months into the pandemic, and she started helping clients quickly.

Because things have been moving so quickly for her, she hasn’t had a lot of time to learn about DPA programs like HAL, but her friend who is a DPA believer told her she’s gotta get involved. She just doesn’t know where to start.

What should we say to her?

• • • • •

Home At Last is a great tool for homebuyers, and you can be the first to tell them about it!

Realtors are often the first person a homebuyer interacts with in the process, and they’ll think you’re a total rockstar when you tell them about DPA. It’s not difficult to become a HAL Certified Realtor.

Our programs help get more Nevadans (buying in rural Nevada) home.

Our team is not only here to answer questions, but we have some great marketing tools to help you use HAL to grow your business.

Nora’s CTA: Become a HAL Certified Realtor so you can tell your buyers about the program and become their homebuying hero.

Realtors

Meet Forgetful Faith Faith isn’t so faithful to the HAL program these days, and it’s not because she no longer thinks it’s an important tool … she’s simply gotten busy and it’s kind of slipped her mind. She’s fallen off the HAL wagon, if you will! Faith is well networked and is typically very good about using her resources to stay up to speed on all things real estate. She hasn’t heard from HAL for a while, though, so this is an instance of out of sight, out of mind. Faith loves when deals go well, of course, and she also finds great satisfaction in the service she provides to homebuyers. She’s been in the industry for 15 years (at least!), knows her stuff, and feels she’s a great asset to a buyer or seller, especially in a wild market like today’s. Faith also knows the value of good marketing and the fact that the market may not always be like this -- she’s already thinking ahead.

She’s pretty rusty, though, on knowing the details of the DPA space, so she’s certainly due for a brush up.

What should we say to her?

• • • •

Where have you been? Doing a LOT of business, no doubt!

Let’s get you up to speed on our program with some quick and easy training.

We have new tools for you and want to get you back to the top of our VIP agent referral tool.

We’re having an amazing networking event where you can get a FREE new headshot!

Faith’s CTA: Reengage with Home At Last to be sure you’re giving your buyers the best tools available to them. Go to HAL U for Realtor 102!

Community

Meet Rural Commissioner Cathy She’s serving her second term on the Board of Commissioners in a smaller, rural county. She feels she’s got her finger on the pulse of her community where she’s lived nearly her entire adult life. She takes her commissioner role seriously and asks a lot of well-researched questions of her fellow commissioners, county staff and vendors. She cares about participation and presence, and when a vendor or partner comes with requests of the county, she wants to see them as a present partner (opposed to an entity simply rolling in when it needs something). We want her to know us and to trust us, and in turn, tell everyone about us and what we have to offer constituents. Cathy wants to see effort in building a relationship with the community, which is something she prides herself on. She’s more than amenable to work together and offer a seat at the table as long as we’re willing to show up.

What should we say to her (and her fellow commissioners/community)?

• • • • •

Here’s how we’ve assisted your community (and we’re providing frequent updates).

Send us your stuff and we’ll send you ours to help spread the word about opportunities for constituents.

Here’s the latest program information to put in your county’s offices/boards/social media.

Can we sponsor a float in your town’s parade?

Can we sponsor a table at your health/job/community fair?

Strategic Messaging While we have identified some of the tailored messages for our target audiences above, there are some overarching messages to incorporate into wider-net branding messaging efforts, considering all audiences.

• • • • • • • • • • • •

We are your trusted and reliable source for affordable homeownership opportunities in rural Nevada.

We have accurate information and solid advice about down payment assistance options available to you.

Don’t sideline yourself before knowing what resources are available to you.

Homeownership is worth it.

You can do this and we will help.

Don’t let down payments stop you from buying your family a home.

Renting isn’t cheaper than buying.

A homeowner’s net worth is 45 times that of a renter’s.

Let’s beat the DPA stigma together.

Aren’t you mission-driven, service-focused like us?

Money is money. It doesn’t matter where it comes from.

Low to moderate-income can buy a home.

New Tech/Feature Enhancement Opportunities Our research-backed messaging and channel planning will be enhanced by also looking at ways to augment our digital tools. Over the last couple years, we’ve made great strides in building the digital and technical tools we need to not only reach our audiences, but capture their attention and move them to act.

The below opportunities are things we should consider as we look at the most innovative and impactful ways to engage our potential homebuyers and partners.

•

Email Capture • Drive visitors to a page to collect contact info.

• What’s the carrot? Free HB101? Get custom daily rates? A HAL Master Class?

• HAL U • Need to look into why homebuyers are still reporting problems about logging back into their course.

The #1 complaint is that it takes them in a loop of requesting the log in email and we need to make that better.

• Add functionality to automatically email certificates upon course completion with next-steps messaging.

• Add functionality to send a “lenders/realtors in your area” email to enrollees.

• Add functionality to send an automatic “Welcome to class!” email upon registration, including clear information about how to get back into the module if you need to leave and return.

• Add functionality to send a “You might qualify for MCC based on your registration responses” email.

• Homebuyer 101 App • MCC/DPA Calculators • MLS integration • Credit pull/send to local lenders • Search lenders/realtors in their area function • Send a lender the results/have a lender contact them

Campaign Brief Overview The FY22 campaign for Home At Last takes the research to heart, and has led us to a creative approach that marries two concepts: 1) homeownership is a worthwhile journey and 2) you’ve gotta make it now (with the help of a reliable and credible source like Home At Last, of course).

The overall vibe is soft yet pointed. Emotive while motivating. Knowing what we do about our audiences -- what they value, what they need and how they’d like to be approached -- this year’s campaign will feature the faces and voices of Home At Last, ensuring our audiences see people like them, achieving the (seemingly) unachievable.

The video and still assets we collect will be used across this year’s campaign -- high-level brand messaging will grace our TV and radio presence, while the more specific and targeted testimonials and messages will be utilized in the more nimble channels like digital, email and OTT. The campaign’s look and feel will stem from the TV asset created with our partner Digiman Studios, ensuring all assets are part of this campaign family.

This year’s campaign will also feature the updated HAL brand -- look, feel, colors and logo.

Sample Headlines and Copy

The path to homeownership … always worth it.

Homeownership is closer than you think.

Make a move.

This is for you, rural Nevada.

The path to homeownership isn’t the same for everyone, but the journey is worth it. Home At Last is a program of the Nevada Rural Housing Authority, offering down payment assistance, access to affordable credit and reliable professionals, dedicated to be your guide.

Because this is your journey… ...and homeownership is closer than you think.

This is for you, rural Nevada. This is Home At Last.

Make a move. Visit HomeAtLastNV.org

Campaign Brief Sample Video Script

AUDIO

VISUAL

The path to homeownership…

B-roll: Family/kid running in the front door excitedly.

It’s not the same for everyone, but the journey … it’s always worth it.

B-roll: Kid running up to mom or dad and giving them a hug.

Home At Last is a program of the Nevada Rural Housing Authority,

B-roll: Homebuyer sitting down with Chamae, reviewing paperwork, smiling

offering down payment assistance ... access to affordable credit …

Super Animates/Slides In: Chamae Swisher, Home At Last Lending Partner, NMLS #1895794, Finance of America

and reliable professionals, dedicated to be your guide.

B-roll: Jorge and Juan (looking at camera?)

Supers Animate/Slide In: Jorge Montoya, Home At Last Lending Partner, NMLS #276125, Guild Mortgage Super: Juan Siguera, Home At Last Real Estate Partner, NRED #S.0051126

Because this is about your journey…

B-roll: Family in backyard, BBQing and swimming

...and homeownership is closer than you think.

B-roll: Homebuyer signing paperwork with Jorge.

This is for you, rural Nevada.

B-roll: Family at home/in yard.

This is Home At Last.

B-roll: Family shot (looking at camera?)

Make a move … visit Home At Last N V dot org.

Logo animates onto screen. URL appears (with required EHO logo and language below).

Nevada Rural Housing Authority is an equal opportunity provider and employer. Not all applicants will qualify. Eligibility for the program is determined by licensed lenders approved to offer the Home At Last program.

Addendum - References Housing Market Predictions: • We are having a residential housing boom driven by the improving economy and millennials reaching their prime homebuying years. Low mortgage rates and an increase in working from home ignited by the pandemic have fueled a rapid increase in housing demand — especially in lower-density suburbs.

More existing homes were sold in 2020 than in any year since 2006.

• Despite the drop in home sales, the housing market remains hot even as mortgage rates hover around three percent. The median existing home price in April was $341,600, a new record high that represents a 19.1% increase from a year before. That is both the highest median price on record and the largest annual increase on record.

• Going into peak homebuying season, summer.

• Now millennials make up the largest share of homebuyers in the US, according to a 2020 survey from the NAR. According to a new study by Realtor.com, buying is more cost-efficient than renting in a growing number of the largest cities in the country.

• However, realtors believe that the vaccine roll-out is expected to ease seller apprehensions, which should improve the supply trends throughout the year. Additionally, an improving economy is maintaining upward pressure on mortgage rates over the last couple of months. In February 2021, the unemployment rate was little changed at 6.2 percent, much lower than their April 2020 highs, according to the U.S. Bureau of Labor Statistics.

• Housing demand rebound continues much faster than the supply recovery.

• With buyers active in the market because of the uptick in mortgage rates, homes are selling quickly.

• Time on the market was 32 days faster than last year.

• Homes are expected to be selling fastest from now until mid-summer of 2021.

• The housing market is still relatively undersupplied, and buyers can’t buy what’s not for sale.

• New listings notched an 8% gain compared to this time last year.

• It marks the 6th consecutive week of increases over last year.

• These continuous gains in new listings will lead to some big numbers ahead in the spring homebuying season.

• Total active inventory or homes for sale on the market remains 51 percent below this time last year.

• The total number of homes actively available for sale continues to be less than half of what it was last year.

• A bounce back in new sellers as we move into the heart of the home-selling season is a welcome sign for buyers.

Fannie Mae May Housing Forecast: • New homes for sale increased 3.9 percent, the largest monthly increase since July 2014.

Addendum - References What Nevada’s Hot Housing Market Means for Homebuyers (NV - KNPR): • In Reno-Sparks, the median home price is up 16 percent and Las Vegas is up about 13.8 percent from a year ago.

• In January, the median home price in Reno was nearly $450,000, and in Las Vegas, it was $350,000.

• Real estate experts agree that the rise in prices is due largely to a supply and demand issue • “We have a housing shortage and specifically, an affordable housing shortage,” Gedde said, “And that kind of dates back to the post-Great Recession period when homebuilders simply didn’t build any houses for a couple of years.”

• While it is a strong sellers’ market, Martinez said there are opportunities for people to buy homes.

• Elias Benjelloun, who is with Homie Helps Las Vegas, which is a real estate brokerage firm that has partnered with the city of Las Vegas to increase homeownership in the Black community, agreed and he doesn’t want people looking to buy a home to get discouraged. “First of all real estate is cyclical and I don’t want to take hope away from people,” he said, “People who think the real estate market is stacked against them should know that there are resources available to help them.

Will Nevada’s Housing Market Continue into 2021?

• He said there are two big things that factor into housing affordability. One is the downpayment, which is usually a percentage of the sale prices, and the second is the monthly mortgage payments, which are extremely low now.

• “The monthly payment is reflecting not only the high home prices but interest rates, and interest rates are at record lows for mortgages,” he said, “Under 2.7 percent by the government index. So actually, the typical monthly payment is way down despite the home prices being up.

• He said nationally the average mortgage is only about a third of the value of the home, “which is astoundingly low” and “equity in housing is sky high.”

• Living in the perfect storm: Low inventory, peak selling season, baby boomers moving from california, tech industry income, high appreciation rates for houses • Renting isn’t cheaper than buying: With prices so high, many people are concerned about affordability.

But Martinez said when you compare the price of rent with the price of a monthly mortgage, it might make a lot more sense for people who are renting to buy a home.

• “When you look at the average price for a rental unit in Las Vegas right now, it’s at $1,708 a month,” he said, “The median price for a rental unit is about $1,595 a month... When you look at the same purchasing power for a $350,000 house with today’s interest rate at 2.69 percent, they can purchase for principal and interest a payment on that for $1,418.

• While a six-month supply is traditionally considered to be a balanced market, the pace of local home sales in March compared to the number of existing homes available for sale equates to well under a one-month supply.

Reno, NV tops list of metros with all-cash buyers: • Realtor.com® has released a list of the metros with the highest percentage of all-cash buyers. And guess which city is in the number one spot?

• Yes, Reno, NV tops list of metros with the highest percentage of all-cash buyers. See: Money Talks in These 10 Metros Where All-Cash Buyers Are Scooping Up Homes – May 17, 2021. This number is up 29 percentage points from a year earlier.

5 Appraisal Topics Every Agent Should Know:

Addendum - References 5 Appraisal Topics Every Agent Should Know: • We are in an unprecedented market with historically low interest rates and a shortage of housing supply.

• “The appraiser has to look at what is the subject property’s competition,” Gregoire said. “If there is no competition, and you’ve got no supply, that has an influence on the value of that property.”

• If a buyer is using an FHA-insured mortgage, the appraiser has to fulfill both the lender’s and HUD’s requirements, Bradley said. HUD requires the house meet safety, soundness, and security requirements, so there might be requested repairs related to those categories. If the buyer is getting a VA-guaranteed mortgage, that adds safety, soundness, and sanitary requirements to the appraisal. Even Fannie Mae and Freddie Mac require appraisers to report “true property condition” for conventional loans, Bradley said. “Don’t advise your seller to accept one offer over another just because you think there’s going to be a difference in repairs,” she added.

Where Homes Are Selling the Fastest: • Across the country, homes spent a median of 43 days on the market in April. That’s nearly three weeks faster than the same time last year, when the reality of working from home during the pandemic began to settle in. Buyers are feeling pressured to make offers on properties they’ve toured briefly, only once, or even just online—sometimes from across the country.

• “For buyers looking for a home in today’s fast-moving housing markets, it’s important to be prepared to move quickly,” says George Ratiu, senior economist at Realtor.com. “Having financing lined up, knowing the neighborhood, and sticking to their budget’s upper limit would help to make a stressful experience Four of the five fastest-moving metros on our list were located in the Western U.S., as Californians who find themselves being able to work from anywhere looked for more affordable alternatives. That’s notable because these areas don’t usually heat up until the summer months ahead of the back-toschool season. Because of this, Realtor.com economists forecast these markets could grow even hotter in the coming months.more manageable.”

• On the other end of the spectrum, homes are moving slower in areas that have been affected more economically by the pandemic. To be clear, these markets aren’t languishing by any means; many are taking about the same time to sell as the average home sold just a year ago. These places tend to have more inventory, and more homes for sale means buyers can be a little pickier about when they put in an offer.

Reno, NV • Median list price: $524,500 • Median days on market in April: 15 Reno is another spillover market that’s seen a lot of love over the past year or so from Californians craving more elbowroom. What once was a haven for retirees has now become an outpost for tech workers who can log in from anywhere with a good Wi-Fi connection. Easy access to ski slopes and the serene Lake Tahoe means outdoorsy types have things to do year-round.

And since it’s just a 3.5-hour drive, weekend trips back West are doable. Homes here are about half the price they are in San Francisco (median list price: $1,061,500). The region has also seen an increase in cash sales as of late, as out-of-staters trade in their expensive Bay Area abodes for a more affordable alternative.

Addendum - References State of Nation’s Housing Report 2021 Summary: The report finds that, as the economy recovers from the impact of the COVID-19 pandemic, some households are taking advantage of historically low interest rates to purchase homes with savings built during the health crisis, while others have been locked out of opportunities to own as prices increase to meet demand. Moreover, renters and homeowners are grappling with billions of dollars in back rent owed, unpaid mortgages, and the growing risk of eviction and foreclosure.

• Increases in home prices and tight supply: • Before the pandemic, household growth in the suburbs and small metros was on the rise. JCHS attributes continued growth in this trend to the pandemic, particularly among younger households eager to own homes and looking for more space to work remotely.

• Sales of existing homes were up 20 percent year over year on average from September 2020 through February 2021. Historically low interest rates and rapidly rising prices have in turn given a substantial boost to new residential construction. The home-buying binge occurred despite historically tight supply; in late 2020, the months of supply for existing homes dipped below two months for the first time ever, while the median time on the market hit a record low of 18 days.

• Racial inequalities in homeownership: • Disparities amplified by the COVID-19 pandemic between households of color and white households remain front and center. Those include shortages of housing near jobs, affordable housing, and starter homes and widening racial inequalities around ownership, access, and wealth.

• Income inequality contributes to the disparities in homeownership, with the median income of white households ($71,000) some 65 percent higher than Black households ($43,000) and nearly 30 percent higher than Hispanic ($55,000) households.

• Income inequality contributes to the disparities in homeownership, with the median household income of white renters ($45,000) in 2019 some 40 percent higher than that of Black renters ($32,100) and 7 percent higher than that of Hispanic renters ($42,000). But even controlling for these differences, the homeownership gaps are still wide. For example, among households earning 50–80 percent of area median income, just 38 percent of Black, 43 percent of Hispanic, 56 percent of Asian, and 53 percent of Native American households owned homes, compared with 64 percent of white households • Accumulating the savings needed for downpayment and closing costs is difficult for most first-time buyers, but especially for renter households of color.

• According to Survey of Consumer Finances data, the median net wealth of Black renters was just $1,830 in 2019—a fraction of the $6,000 median for Hispanic renters and $8,300 median for white renters. In addition, only 8 percent of Black renters and 12 percent of Hispanic renters had more than $10,000 in cash savings, compared with 25 percent of white renters Households Face Risk of Eviction and Foreclosure • With so many renters and homeowners in financial distress, there are growing concerns among affordable housing advocates about an impending wave of evictions and foreclosures. So far, substantial federal relief through stimulus payments, expanded unemployment benefits, and other funding, along with federal and state eviction moratoriums, has prevented large-scale displacement

Addendum - References The Number of Cost-Burdened Households on the Rise • The report shows housing costs are particularly burdensome for the lowest-income renters. TLowincome households especially are likely to have lost wages and fallen behind on housing payments.

While housing subsidies offer much-needed support, only a quarter of eligible households receive assistance, and the assistance does not begin to address long-standing housing affordability issues.

• More than 80 percent of renters earning less than $25,000 were cost-burdened in 2019 — spending more than 30 percent of their income on housing, and the majority spent more than half their income on housing. Similarly, the report found that 70 percent of renter households earning between $25,000 and $34,999 and nearly 50 percent of renters earning between $35,000 and $49,999 were costburdened in 2019, with Black and Hispanic renters 12 percent and 10 percent more likely, respectively, to carry such burdens.

Soaring prices with high demands and tight supply • Sales of existing homes were up 20 percent year over year on average from September 2020 through February 2021 • Sales of new single-family homes rebounded even earlier and faster, increasing by more than 30 percent on average from June through February Will the housing bubble pop (like 2008)?

• These outsized increases have raised concerns that a home price bubble is emerging. However, conditions today are quite different than in the early 2000s, particularly in terms of credit availability.

The current climb in house prices instead reflects strong demand amid tight supply, helped along by record-low interest rates. Indeed, the rate on a 30-year fixed mortgage averaged less than 3.00 percent from July 2020 through February 2021, with another dip below 3.00 in May Housing shortage projections: • Although part of the answer to the nation’s housing shortage, new construction can only do so much to ease short-term supply constraints. To meet today’s strong demand, more existing single-family homes must come on the market • Still, with interest rates so low and home sales at such a furious pace, prices are likely to continue their rapid ascent in the near term.

• The national homeownership rate remains on an upward trajectory, driven by the aging of more millennials into their 30s and the strong income gains among these young adults • However, rapidly rising home prices mean that the upfront costs of homeownership are also increasing, particularly in markets where bidding wars have become commonplace. As it is, home price gains continued to outrun income growth last year, lifting the national price-to-income ratio to 4.4—the highest level since 2006

Addendum - References Targeting minority communities: • With interest rates near historic lows, downpayment assistance programs would give a substantial lift to homeownership rates among households of color with insufficient savings. As a recent Joint Center analysis concluded, a $15,000 income-targeted assistance program could help as many as 1.0 million Black renters and 470,000 Hispanic renters buy homes. When coupled with homebuyer education and counseling to overcome information and credit barriers, this support has the potential to reduce the Black-white homeownership gap by 12 percentage points and the Hispanic-white gap by 4 percentage points.

The nation’s critical need for housing investment • Among the homes most in need of repair are manufactured housing units, units occupied by renters, and those occupied by Black, Hispanic, and Native American/Alaskan Native households, as well as by people with disabilities. Public housing is an important case in point. National Association of Housing and Redevelopment Officials estimated that the backlog of capital funding needed to address deficiencies in the stock of roughly one million units was $70 billion in 2019 and accruing at $3.4 billion per year.

Housing market • The homebuying market remained hot even as the COVID-19 pandemic moved into its second year.

Sales of both new and existing homes soared in early 2021 amid low interest rates and strong demand.

In combination with record low inventories, the homebuying frenzy has helped to push up home prices by double digits. Rents have also started to recover from last year’s drop. After years of underbuilding, housing developers have finally responded to favorable market conditions, with production increasing in line with projected household growth.

• Despite a sharp drop at the onset of the pandemic, home sales bounced back quickly in 2020. Several factors helped to buoy sales, starting with record-low mortgage interest rates. The pandemic itself drove up demand for more private living space, particularly among the higher-income households that were least affected by the economic downturn. The aging of the millennial generation also helped by lifting the number of households in their peak homebuying years.

• The supply of existing homes for sale has never been tighter. By NAR’s count, there were 1.03 million existing homes on the market in February 2021, down from an already low 1.46 million a year earlier (Figure 7). This amounts to a 29 percent decline in just one year and a 37 percent drop in two years.

Single-family homes accounted for only 870,000 of the existing units available—the lowest level in records dating back to 1982.

• As a rule of thumb, a balanced market has about 6.0 months of available inventory.

• Pandemic is partially to blame for housing shortage, for shutting down the world for almost a year. But the biggest reason behind the constraints on supply is the underproduction of new homes since the mid-2000s.

Addendum - References Housing constructions at new highs • Like home sales, new residential construction rebounded quickly in the summer of 2020 and continued at a strong pace through early 2021. Housing starts climbed 6.9 percent last year to 1.38 million units— the highest output since 2006 when production reached 1.80 million units. Completions were also up 2.5 percent to 1.29 million units, while permitting rose 6.1 percent to 1.47 million units • Housing construction has finally approached levels consistent with projected demand. From June 2020 through March 2021, total starts averaged just over 1.5 million units at a seasonally adjusted annual rate, in line with the Joint Center’s housing demand projections calling for production of 1.5 million units annually Persistent climb in home prices • With inventories and interest rates at or near record lows, home prices have moved progressively higher. Year-over-year increases in the S&P CoreLogic Case-Shiller Home Price Index jumped from 4.5 percent in March 2020 to 10.4 percent in December—the first double-digit rise since 2014. Adjusted for inflation, the end-of-year increase was still a robust 9.1 percent (Figure 11). The runup that began in mid-2012 and continued for over 100 consecutive months 2018–2028. thus left real home prices 2 percent above the mid-2000s peak and 60 percent above the level in 2000.

• Based on Moody’s household income projections, the national price-to-income ratio is expected to rise from 4.14 in 2019 to 4.37 in 2020. This would mark the fifth consecutive year that the median home price was more than four times median household income. By comparison, average price-to-income ratios were considerably lower at 3.21 in the 1980s, 3.31 in the 1990s, 4.01 in the 2000s, and 3.82 in the 2010s. Ratios in the nation’s 100 largest metros are expected to range as high as 10.9 in San Jose, 9.5 in Honolulu, and 9.4 in Los Angeles, and as low as 2.5–2.6 in Scranton, Syracuse, and Toledo.

• From December 2019 to December 2020, typical home values increased in about 27,300 of the nearly 30,000 zip codes tracked by Zillow. In a third of those zip codes, home price appreciation exceeded 8 percent, including over half of the neighborhoods where people of color were in the majority. Home values in these communities rose 9.3 percent on average over the year, far faster than the 7.7 percent increase in majority-white neighborhoods.

• Given the extremely limited supply of homes for sale across the country, prices will likely continue to rise for the foreseeable future even if interest rates tick up and more sellers put their homes on the market. But in the longer term, robust growth in housing construction will be necessary to temper conditions in some of today’s overheated homebuying markets. However, homebuilders will need to meet the growing demand for homes of various sizes and at different price points, especially as millennials become a dominant force in the market.

Addendum - References Demographic Drivers: • Early estimates suggest that the pandemic did little to interrupt the ongoing rise in household growth, with millennials continuing to head up new households at a strong clip. As these young adults marry and have children, they are reinforcing household growth outside of urban centers. The economic disruption caused by the pandemic did, however, widen already large inequalities in income and wealth. On top of slowing population growth, these persistent disparities prevent people of color and those with lower incomes from forming their own households, in turn reducing longer-term demand for housing.

• Indeed, adults under age 35 have made increasingly large contributions to overall household growth, accounting for an additional 250,000 households annually in 2016–2019 (Figure 13). Headship rates among 35–44 year olds also increased over that period, adding 200,000 households in that age group each year.