The millennial generation’s entrance into the housing market has been delayed in comparison to prior generations. There are quite a few factors that have contributed to this phenomenon, but the most widely accepted are economic factors.
Nearly one third of the millennial generation live with their parents and have yet to form a household of their own. The lack of jobs, or well-paying jobs, is a major reason this generation has been unable to “leave the nest.”
With recent job growth in the U.S. and the economy improving, not to mention the older segment of the generation edging towards 40 years old, millennials are finally looking to get out on their own.
The millennial generation consist of persons born between 1981 and 1996. Every generation possess certain characteristics that define them, the millennials are no different. This generation has been talked about for years regarding their spending habits, reluctance to enter the workforce, and social habits heavily influenced by media and technology.
The millennial generation is now the largest living generation today and, according to the National Association of Realtors, they make up nearly a third of prospective home buyers, they are now a significant factor in the housing market and their impact must be considered.
There are a few characteristics inherent in this generation that must be considered in your real estate marketing plan targeting this demographic.
They are well informed
Millennials have access to more information in the palms of their hands than real estate experts could have dreamed of possessing a decade ago. It is guaranteed that all of them have a mobile device capable of researching a home they are interested before they even consider engaging in conversation with the realtor or property owner.
Effective internet and social media marketing are necessary to be successful with the ever-changing real estate market that will soon be overwhelmingly dominated by the millennials.
Millennials spend most of their free-time throughout the day browsing social media, something that has even become somewhat accepted in the workplace.
Employers are increasingly willing to allow their personnel to check social media alerts on their phones, as it takes mere seconds…in fact the “bosses” probably do it as well.
This allows for increased opportunities to reach this target audience as they consume information all day long. Creating an effective slogan or tagline will prove beneficial when marketing to this demographic.
They are more cautious
Many in this generation were on the sidelines during the “great recession” and witnessed their parents, or their friend’s parents, lose their home to foreclosure. This generation is also saddled with significant debt from student loans.
They are entering the market but are incredibly cautious and will not rush into making the largest investments of their young lives. Even though they make up a large percentage of first time home buyers, they are very willing to rent to avoid the risks of home ownership.
They are more willing to assume “good debt”
As many in the baby-boomer generation set goals of being completely debt free, to include no mortgage, in retirement, millennials are more accepting of the fact that not all debt is bad.
There is a shifting perspective among financial advisors that carrying a mortgage is not a negative when setting long to term financial goals. As millennials are entering the housing market at a later age or looking to move up from their “starter home” in their late 30’s, the idea of having their “dream home” paid off by mid-career is unrealistic.
Offering information on good-debt vs. bad debt or steering them to reputable sources that can provide this advice, should be a component of your content marketing strategy.
They prefer less hassle
The millennials have a reputation for wanting to take the easiest route possible in life, some may disagree with this stereotype, but in the housing market it seems to be true. They are looking for a move in ready home, that needs little to no work, and they are willing to pay extra for it.
It is still possible to get a member of this demographic to be interested in a “fixer-upper”. If marketed correctly and if the potential of the property is realized through effective property descriptions, the home will be attractive to this group thanks in part to the popularity of the many home-improvement shows on cable TV. Programs on networks like HGTV make renovating a home look simple and exciting.
Location is key
Even though most millennials are looking for homes in the suburbs, the urban markets are often the preferred option. As is the case for all generations, the enticement of more affordable and spacious homes in the suburban locales is what has moved the middle class out of the crowded cities.
Most millennials would prefer to live closer to the urban areas that provide more entertainment options, an exciting nightlife, and are a closer to high paying employment. They may be willing to sacrifice square footage for a great location if ownership comes at an affordable price.
An effective real estate marketing strategy is key in reaching the millennial generation. If you can appeal to this growing segment of the real estate market you will be a step ahead of your competition.