In order to conduct this analysis we take in data on market value of home at a national level, for 6 age categories over a 10 year period:

1. The average market value of owned home by folks who are less than 25 years old.
2. The average market value of owned home by folks who are between 25 and 34 years old.
3. The average market value of owned home by folks who are between 35 and 44 years old.
4. The average market value of owned home by folks who are between 45 and 54 years old.
5. The average market value of owned home by foks who are between 55 and 64 years old.
6. The average market value of owned home by folks who are more than 65 years old.

When we look at the change in the market value of homes over the course of a decade for any age group of homeowners nationally, we expect there to be a some increase in the value of all homes owned - this is not the case. The analysis reveals that the largest increases in home values from 2004 to 2013 have been in the value of homes for folks who are under the age of 25 and over the age of 65. The homes owned by homeowners in each of these two age groups shows an increase of 29.8% and 26.1% respectively.

The market value of homes for folks belonging in the 34 to 44 years and between 55 to 64 years age group have also shown decent appreciation in value, having increased 9% and 13.4% respectively. What is surprising however is the fact that the home values for folks in the age group of 45 to 54 years has only increased by 3.2% and for those in the 25 to 34 age group, the market value has actually decreased by 12.9% percent.

We think that a lot of folks in the 25 to 34 age range wound up buying their first homes at the height of the real estate bubble in 2005 and 2006. Many of these folks were able to obtain 100% financing and were able to purchase started homes that had had shown tremendous price appreciation but in the end were not able to hold their value once the real estate bubble collapsed.

All this of course has certain implications for Andy and Jose when they go about targeting their advertising and promotions. They have to consider these national trends in the values of homes and overlay that with what is happening in their target market to then develop more focused and targeted marketing material. Folks whose homes are under water in terms of valuation tend not to have the financial resources to be able to perform anything else but the very basic electrical maintenance work. The chances that someone will want to install high end appliances, update their air-conditioning equipment or security system will always be much higher with folks who have more equity in their homes and whose homes have show at least some appreciation over the last decade.

Quick Links:

1. Go to the Corresponding Template section for this industry.
2. Go to the Corresponding Questionnaire section for this industry.