Nmi Holdings Inc · NASDAQ:NMIH
Nmi — Investor Presentation (May 2023)
36 slides from Nmi's investor presentation, May 2023
Slide 1: 2023 Gen Z Homebuyer Report
2023 GEN Z HOMEBUYER REPORT By Kristin Messerli *For informational purposes only
Slide 2: Introduction
INTRODUCTION The 2023 NextGen Gen Z Homebuyer Report is a research project developed in partnership with National MI to provide practical insights into the behavior and preferences of one of the fastest-growing segments of the homebuyer population. Gen Z individuals, born between 1997 and 2012, are
Slide 3: Discover Your Guide to Today's Homebuyer
DISCOVER YOUR GUIDE TO TODAY'S HOMEBUYER ACCESS THE REPORT NextGenHomebuyer.com
Slide 4: Background & Methodology
BACKGROUND & METHODOLOGY The ongoing study of Millennial and Gen Z homebuyers currently includes a total of 4,000 respondents over three years. The majority of the research reflected in this study comes from data gathered in October 2022 and April 2023, which includes the following: ● 1,000 responde
Slide 5: Demographics
DEMOGRAPHICS GENDER AGE 58% Female Ages 18-26* 42% Male *Includes some comparative data with ages 27-44 from the annual 2022 NextGen Homebuyer Report INCOME RACE AND ETHNICITY $150k+ Other 11% $125k-149k Asian + AAPI 6% $100k-124k Black / African American 15% $75k-99k Latinx / Hispanic 26% $50k-74k
Slide 6: Thank You to Our Gen Z Research Advisors
THANK YOU TO OUR GEN Z RESEARCH ADVISORS ng Blake Boss E> Ally Carty f EVP, ActiveComply : wy ~ Gen Z Guru = s Rathi Ramasamy Impact Research Consultant be
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Slide 8: Gen Z Values: Financial Literacy, Technology, Transparency
Financial Literacy Knowledge and education, especially about financial decisions has become a major value to Gen Z consumers. Technology Gen Z consumers are tech-savvy and prefer to use digital tools and platforms to manage their finances with quick and easy access to their financial information. Tr
Slide 9: Gen Z Wealth in the U.S.
GEN Z WEALTH IN THE U.S. $1436 Gen Z has a direct spending power of $143B in the US. (Bloomberg) Kristin Messerli | National ALLOWANCE JOBS 60% of Gen Z report that they receive a regular allowance, and 63% reported that they have earned their own money through part-time or full-time jobs. (McKinsey
Slide 10: Kristin Messerli |
Kristin Messerli | Source: Statista 2023
Slide 11: For Gen Z Homebuyers
FOR GEN HOMEBUYERS eeeoeveveee eeoeeee Kristin Messerli | NationalMi.
Slide 12: Top Barriers to Homebuying
TOP BARRIERS TO HOMEBUYING Lack of Support Kristin Messerli | NationalMi.
Slide 13: Top Financial Challenges for Gen Z
TOP FINANCIAL CHALLENGES FOR GEN Z ¢ Younger Millennials reported the most challenges of any age group, reporting higher in mental health and personal finance knowledge. ¢ Gen Z respondents were significantly less likely to report challenges in cost of living, debt, and healthcare costs, which can l
Slide 14: Kristin Messerli |
eoeeeeeeee eoeeeeeeee eeoeceeeeeee eoeceeeeoeee eeoeeeeeeee Kristin Messerli | NationalMi.
Slide 15: Gen Z Challenge #1
GEN Z CHALLENGE #1 With the increasing prices of homes and the limited availability of affordable housing options, many Gen Zers are finding it difficult to enter the housing market. For many first-time buyers, the down payment and closing costs required to purchase a home are often significant barr
Slide 16: Cost of Renting and Housing Availability
58% 58% said the cost of renting prevents them from considering homeownership Kristin Messerli | NationalMi. 39%0 Gill» 39% of Gen Z said limited availability of affordable housing options were current obstacles to buying a home
Slide 17: Job Instability Impacts Homebuying
JOB INSTABILITY IMPACTS HOMEBUYING 60%o Kristin Messerli | National 60% of Gen Z stated low levels of income or job instability was a top obstacle to homebuying. 31%o Gen Z reported job instability as their number one challenge to their financial situation in 2022.
Slide 18: Interest Rates Are an Obstacle for Some Gen Z
INTEREST RATES ARE AN OBSTACLE FOR SOME GEN Z 38% of Gen Z said that 0 interest rates and the 38 Yo state of the housing market were factors when considering whether to buy a home. Kristin Messerli | NationalMi. 51% said high interest rates were current obstacles to buying a home for Gen Z.
Slide 19: Flexibility vs Ownership: Challenges Facing Gen Z Homebuyers
FLEXIBILITY VS OWNERSHIP: CHALLENGES FACING GEN Z HOMEBUYERS 30% — 30% said the perception that renting is more flexible than owning is a barrier to buying a home for Gen Z. Kristin Messerli | National 18%o —_zpD 18% say a barrier to buying is that contract or "gig" work make it difficult to qualify
Slide 20: Homeownership and Generational Wealth
0 One in 3 said they were not sure that owning a home 36 Yo was the best way for them to build generational wealth. Only 32% said they wanted to buy a home because of 32%0 the long-term financial benefits of owning a home. 739/ Gen Z homeowners were significantly less likely than 0 Millenials to agr
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Slide 22: Gen Z Challenge #2: Lack of Personal Finance Education
GEN Z CHALLENGE #2 Lack of Personal Finance Education Over the past three years of research on NextGen homeownership, lack of education has repeatedly been a major barrier to purchasing homes and building wealth through real estate. Our research and other studies have shown that young homebuyers hav
Slide 23: Lack of Education as Obstacle to Homeownership
LACK OF EDUCATION AS OBSTAC TO HOMEOWNERSHIP FOR GEN Z 39% > 39% said lack of knowledge or understanding of the homebuying process was a barrier to buying. LE 27% > 27% said limited personal financial knowledge was a top challenge to their financial situation last year. Kristin Messerli | National
Slide 24: Nearly Half Believe You Need a 20% Down Payment
NEARLY HALF BELIEVE YOU NEED A 20% DOWN PAYMENT BUT LESS THAN MILLENNIALS Gen Z were more likely than Millennials to know that you could put less than 20% on a down payment, however still nearly half agreed or were not sure (47%). Kristin Messerli | NationalMi.
Slide 25: Home Maintenance Is a Concern for Gen Z Homebuyers
HOME MAINTENANCE IS A CONCERN FOR GEN Z HOMEBUYERS Nearly one in three (30%) Gen Z homeowners said they are not confident in caring and maintaining their home as a homeowner, significantly higher than millennials (18%).
Slide 26: Support
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Slide 27: Gen Z Challenge #3: Lack of Support
GEN Z CHALLENGE #3 Lack of Support Gen Z is more likely to rely on online resources and social media for financial advice than on experts such as financial advisors or banks. This lack of trust in traditional institutions may be attributed to the events of the Great Recession, which left a lasting i
Slide 28: Gen Z Feels Less Supported to Reach Financial Goals
GEN Z FEELS LESS SUPPORTED 10 REACH FINANCIAL GOALS 26% Kristin Messerli | National Gen Z Millennials Gen Z was significantly less likely than older millennials to say they have the financial advice and support they need to reach their financial goals (14% vs 26%).
Slide 29: Gen Z Less Likely to Turn to Bank or Credit Union
GEN Z LESS LIKELY TO TURN TO BANK OR CREDIT UNION Gen Z are significantly less likely than millennials to go to a bank or credit union for financial advice (27% vs 44%) Gen Z Kristin Messerli | NationalMi.
Slide 30: Gen Z Less Trusting of Housing Professionals Than Millennials
GEN Z LESS TRUSTING OF HOUSING PROFESSIONALS THAN MILLENNIALS “| trust my professional to help me make smart decisions.” 82% @ @ senz 77% 58% © Millennials Loan Officers Real Estate Professionals Kristin Messerli | National
Slide 31: Social Media as Trusted Educational Resource
SOCIAL MEDIA AS TRUSTED EDUCATIONAL RESOURCE Gen Z current homebuyers and recent homeowners in Oct 2022 social media activity *A study conducted by Qualtrics on behalf of Credit Karma found that 52% of Gen Zers are getting financial advice from TikTok, and 57% are getting it from Instagram. Kristin
Slide 32: About Kristin Messerli
ABOUT KRISTIN MESSERLI Kristin Messerli is the Executive Director of FirstHome IQ, a nonprofit dedicated to educating the next generation about homeownership. Kristin is also a leading strategist and keynote speaker on housing and finance trends in young and diverse markets. Kristin has worked with
Slide 33: Learn more and support the nonprofit mission
To learn more and support the nonprofit mission to educate and inspire the next generation of homeowners, visit FirstHomeIQ.com.
Slide 34: About National MI
ABOUT NATIONAL MI National Mortgage Insurance Corporation (National MI) is a U.S.-based, private mortgage insurance company established with a mission to enable low down payment borrowers to realize homeownership, while protecting lenders and investors against losses related to a borrower’s default.
Slide 35: Disclaimer
DISCLAIMER The information contained in this report has been provided by Kristin Messerli for general information purposes only and does not replace independent professional judgment. While every care has been taken to ensure that the content is useful and accurate, Kristin Messerli gives no guarant
Slide 36: Visit NextGenHomebuyer.com to view past reports
Visit NextGenHomebuyer.com to view past reports and research or go to NationalMI.com/NextGen-Resources KRISTIN MESSERLI Speaker | Executive Director, FirstHome IQ