The New Generation of Home Buyers Taking Over The Market – Millennials
Are you someone working in the real estate industry that aspires for long term success? Well your answer is easy-Millennials. According to the Home Buyer and Seller Generational Trends Report 2015, by The National Association of Realtors, millennials make up the largest number of home buyers and that number is growing. The trends report offered insight into the buying trends of young homebuyers and as someone working in the real estate industry, understanding what this demographic wants and needs can set you apart from the competitors.
The trend
s report had some important key points that if overlooked could cost you a valuable and growing demographic of homebuyers. The infographic provided sums up some of the most important data collected from the trends report.
Before looking into what it is that the younger generation of homebuyers want, it is important to understand the value of this key group of buyers. To begin, the trends report states, “Generation Y makes up 32% of the home buyer market and that number is growing”. According to the trends report, that is a larger percentage than the Baby Boomer generation. Overlooking the younger generation of homebuyers can be detrimental to long term success in the real estate industry. More and more baby boomers are retiring and not looking to purchase more property. Meanwhile, more and more millennials are securing jobs and gaining financial independence. This translates into looking for homes to settle into long term. Developing relationships with this group of buyers and finding efficient ways to market to this demographic will result in current and future success when selling homes.
So now the question is, how does one market to the younger generation of home buyers? The answer is online. According to the trends report, “94% of millennials use online searches to look for homes”. Millennials grew up during the exponential growth of technology; from smart phones to handheld devices to new and improved laptops, so technology is something they have grown comfortable with. Their worlds are so interconnected due to the Internet that it is only natural that they would look to purchase a home from an online source. For them, the Internet is a much more efficient way to find what they want and need as opposed to going out in the field and physically searching for houses and agents.
To take it even one step further, the younger generation of homebuyers are more and more frequently using mobile devices to aid in their home search process. According to the trends report, “More than half of Gen Y and X used a mobile device during their home search. Among those who did, 31 percent of Gen Y and 26 percent of Gen X found the home they ultimately purchased via a mobile device”. This trend shows the importance of marketing on social media platforms that are frequently used on mobile devices, like Instagram and Facebook, and also creating a website that is mobile friendly.
Along with this data, the trends report found that the younger generation of home buyers placed a higher importance on agents communicating via text and email, as opposed to the older generation who preferred communicating over phone calls. When it comes to selling homes you have to be willing to meet your potential buyer on a communication level that they are most comfortable with, and this data shows that when marketing to the younger generation they seem to be more responsive to visual communication like texts and emails.
As the younger generation of home buyers continues to take over the market, it is important to figure out the most efficient ways to market and communicate with them in order to ensure your success in the industry. The key takeaway is that this generation is more and more reliant on the Internet as a means to find a home, so it is important to figure out how to use that medium to your advantage. Their searching and communication styles are drastically different from previous generations of homebuyers so adapting to these changes is vital to long term success.
Source: The National Association of Realtors – Home Buyer and Seller Generational Trends Report 2015