Supporting millennials to move out of the Renter Generation concept
June 15, 2022One of the biggest trends predicted for the real estate market is the growing number of Millennials who will enter the market as first-time buyers. As Baby Boomers enter retirement age, the real estate industry is keeping a watchful eye on the new generation of homebuyers who initially seemed hesitant but have now jumped on the homeownership bandwagon. Specifically, we are seeing a rise in Millennials choosing to build a new home rather than buy a used home.
The real estate industry is particularly focused on Millennials because of their size. This group represents the largest generation of potential homebuyers the United States has ever seen - 92 million people. The way they approach housing - from the decision to rent or buy to the types of homes they prefer - will have a profound impact on the real estate industry as a whole.
Many in the real estate industry were concerned that Millennials would not accept the notion of homeownership as an important part of the American dream. Now that we have moved past the housing crash and resulting recession, however, we are learning that there is a much more fundamental reason why Millennials have avoided buying a new home, and the reason for many was that they viewed homeownership as too much of a financial burden for them. This generation is now entering the housing market with full force. Accounting for 32 percent of the total U.S. housing market, this group currently dominates the home-buying market. They also account for 68 percent of all first-time homebuyers.
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This is why this segment has become a partially served market niche that suggests creating new strategies and solutions tailored to their needs. This then becomes an invitation to the entire sector to restructure its vision of the market and the way it sells. In this article, we tell you 5 recommendations that you can follow if you want to be in the eyes of these young generations and evolve your marketing strategy to expand your reach for the future of the real estate market.
- The millennial generation needs an agent who can be a guide every step of the way: since buying a home is new for many millennials, they need a realtor who can guide them through the unfamiliar terrain. This market segment appreciates a realtor who can help them understand the buying process.
- In the eyes of millennials, price is everything: millennials buying a home can not afford to break the bank. Many of them are first-time buyers who do not have the funds from the sale of a previous home, and many are still saddled with student loan debt. That's why you need to show them how your expertise can save them money during the home-buying process. Little things, like helping them negotiate contracts or recommending mortgage lenders, can go a long way with Millennial buyers.
- In the millennial generation, appearance is important: It's no secret that Millennials are social media fanatics. Visual sites like Instagram and Pinterest are also popular with Millennials, who want to get inspired by the interior design or gush about the architecture of their ideal dream home. As a real estate agent, creating an environment that Millennials can imagine living in is therefore an important part of the buying process.
- It's important to show millennials how you're different: Millennials know that not all real estate agents are the same. Of all age groups, Millennials are the most likely to consider more than one realtor. It's especially important to differentiate yourself from other realtors when you are working with Millennial clients. Here is what you can do to stand out from the crowd.
- Digital marketing is no longer optional: Marketing your real estate services online is no longer optional. Your marketing strategy needs to meet Millennials' real estate buyers where they are researching and searching for properties. This is why SEO (search engine optimization) is so important. If you match your website content to the keywords Millennials use when searching for real estate in your area, you'll show up in search results.
Because advice is so important to Millennials, your marketing should emphasize your commitment to helping them every step of the way. Do not just promote properties for sale. Instead, highlight how you can help overcome common challenges and offer helpful content, such as a guide to buying a first home or a checklist of important considerations when looking for real estate.
Capture Millennials' attention with image-heavy marketing. Show stunning photos of stylish homes or inviting images of breathtaking views.