Millennials make up more than 34% of home buyers according to NAR 2020 Home Buyers Report. Understanding how to appeal to this group of buyers will expand your business.
What Makes a Generation?
According to Oxford Dictionary a generation is all of the people born and living at about the same time, regarded collectively.
Being a part of a generation can be a powerful unifier. Researchers have speculated that members of a generational cohort may have more social solidarity than members of the same family because they share the same, collective consciousness and historical experiences.
Millennials, for the most part, grew up in the same cultural context. A context that is categorized by fast paced change in political, social, and economic areas. These changes have a significant influence on how Millennials engage in relationship and how they interact with marketing messages.
Who are Millennials?
Millennials are individuals born between 1980 and 2000. They are also known as the Echo-Boom generation, Generation Y, and sometimes Xennials (for millennials who are born closer to 1980).
They are the most educated generation in the United States and they are the largest generation by population.
Winning the trust of millennial consumers is a powerful force in moving businesses forward. Millennials are loyal to brands they trust, and they have an increasing buyer power. So how do you tap into this market to maximize your real estate business?
Become the Millennial Real Estate Expert
Millennials make up an increasing number of home buyers. This fact combined with their loyalty to brands they trust, will result in their realtors now becoming their realtors for life.
Millennials buy homes at different life stages compared to previous generations. They have broken records for the rate of single women and unmarried couples buying real estate.
They also experience some roadblocks to home ownership. Addressing these roadblocks in your marketing strategy will position you as their real estate professional of choice.
Roadblocks to Home Ownership
Compared to previous generations, Millennials own a small portion of property in America. Millennials own 4% of real estate by value in the United States. Compared to Baby Boomers who owned 32% of real estate by value at the same age of millennials now. This disparity is due to various social, cultural, political, and economic differences.
Compared to other generations, millennials buy homes later in life. They tend to stay in school longer and rent longer than other generations. This prolonged education has also resulted in one of the most significant economic crises of our time, the $1.5 trillion in student loan debt that is currently shouldered by the millennial generation. Nearly half of this generation owes at least $5,000 in student loans, with he average debt being nearly $30,000.
Many Millennials are not aware of their options, they believe that their debt disqualifies them from a home loan.
Being the real estate professional who educates these buyers on their options with help you convert leads, in due time, and build a lifelong relationship.
Make Your Social Work For You
According to my study Managing Word of Mouth to Reach Millennials. 98% of Millennials look ups reviews on a business before making purchases. The most powerful way to leverage your digital presence toward Millennial buyers is to ask your clients to write reviews, and post those reviews on your social media channels with branded graphics.
Use Facebook, and Instagram live to teach potential clients of their home ownership options.
Helping Millennials invest in real estate will allow you to build a powerful business and engage repeat clients and referrals.