The relative rise of the unmarried couple
The share of young unmarried couples buying homes together has been on the rise over the past decade, according to a new Zillow analysis. Across the country, almost 15 % of all homebuyers age 24-35 are unmarried couples, up from 11% in 2005.
Of the markets analyzed, Washington, D.C., had the greatest increase in the share of unmarried homebuyer couples — almost 16% of all young homebuyers in D.C. are unmarried couples, up from 7.5% in 2005. Philadelphia and Miami also had large increases in the share of young unmarried couples buying homes together.
The majority of homebuyers have long been married couples, but as home values continue to rise, more unmarried couples are buying homes together since it's more affordable with two incomes.
Home values across the country are rising at their fastest pace since 2006, and some of the nation's hottest housing markets — such as Seattle, Denver and Portland — have surpassed peak home values reached during the housing bubble. The median home value in the U.S. is now $193,800 — up 7% over the past year. As homes become increasingly expensive, the need to purchase a home with someone else becomes a necessity — almost 75% of all buyers are married or in a relationship.
"Buying a home is a big part of the American Dream — equally shared by millennials and baby boomers alike — but it's becoming extremely difficult to make it work on a single income," said Zillow chief economist Dr. Svenja Gudell. "Many singles looking to purchase a home on their own may not make enough money to afford or qualify for a mortgage on their dream home. That makes buying a home with a significant other even more appealing, even if marriage isn't quite part of the picture. Simply put, buying a home is much easier with two incomes. Assuming home value growth continues to outpace income growth, I imagine this trend will continue."
While more unmarried couples are buying homes together, fewer singles are purchasing homes on their own. About 25% of all homebuyers age 24-35 are single, down from 28% in 2005.
Columbus, Ohio, had the greatest drop in the share of single homebuyers, followed by Las Vegas. In 2005, almost 40% of all young Columbus homebuyers were single. Now, it's less than 20%. Portland, which has the fastest home value growth in the country, has also had a large drop in the share of young singles buying homes — there's been a 10 percentage point decline since 2005.
Electrolux acquires Anova
Electrolux is acquiring Anova, the manufacturer of the Anova Precision Cooker, a connected device for sous vide cooking that enables restaurant-quality results in the home.
The move provides an avenue for growth in this emerging product category, as well as an appealing direct-to-consumer business model and digital focus.
The Electrolux Home Care business area also intends to open an office in San Francisco (near Anova headquarters) in order to establish an innovation hub for creating meaningful and innovative consumer experiences in the smart home arena.
Anova was founded in 2013 and is growing rapidly, having been rated best cooking gadget of 2016 by reviewed.com, with net sales in 2016 of around $40 million. The company has approximately 70 employees and contractors globally and is headquartered in San Francisco, California.
The up-front cash consideration in the transaction is $115 million, with an additional amount of up to $135 million, depending on future financial performance.
"Anova's mission — to make it easy for consumers to cook like a pro — is so similar to our own focus on great tasting food that this was quite obviously a perfect match," said Ola Nilsson, Head of Electrolux business area Home Care and Small Domestic Appliances. "It's also a great strategic fit in terms of Anova's approach to online sales and digital marketing, and in how they leverage connectivity in the products. We have a lot to learn from each other, and look forward to helping Anova take the next steps on their global growth journey while maintaining an agile and innovative culture."
The Anova Precision Cooker connects to a user's smartphone and offers thousands of recipes to make it easy to cook sous vide. Food is placed in a sealable bag and brought to a precisely controlled temperature in a water bath.
"This acquisition offers a valuable stepping stone in our journey to deliver best in class consumer experiences through smart, connected appliances. Additionally, Anova's passionate community of food lovers is a great example of the kind of relationship we are building with people around the world," said Jonas Samuelson, President and CEO of Electrolux.
The acquisition is expected to be closed during the first quarter of 2017.