According to the U.S. Census Bureau, millennials now number 83.1M – more than one quarter of the nation’s population. As the largest demographic group in America, millennials are a powerful buying force and businesses/companies are vying for their attention. They are the largest source of new demand for rental housing and represent 32% of the U.S. home buying market and 68% of first-time homebuyers . As such, their preferences will greatly impact the economy and shape the residential real estate market, including how homes are built and financed……so make sure you do your research.
While millennials are key to the future of housing demand, the Great Recession has left them at a financial disadvantage and they are delaying key life milestones, such as homeownership, marriage and having children. Economic challenges, such as rising student loan debts, stagnant wages, a competitive job market, rising rents, and high price-to-income ratios, have made it difficult for millennials to save and/or qualify for a home. However, millennials remain optimistic about their future and aspire to own a home – 84% consider a home purchase a good financial investment.
As digital natives, millennials are the most tech-savvy generation that advertisers have targeted. They demand instant access to information, price comparisons, and reviews. They are turning to trusted sources that offer high quality, transparency, and convenience (at the lowest cost). They are also adopting new approaches to finding a real estate agent, searching for their dream home, and home finance.
The top two methods to find a Real Estate Agent are through word-of-mouth and a previously used agent.
Millennials who are looking to sell want an agent to help them with competitively pricing their home and selling within a certain timeframe. When searching for a listing agent, or any agent for the matter, the reputation of the agent is a major decision factor. You don’t have to be the most well known agent throughout the area (although that doesn’t hurt) BUT if Millennials can’t easily find information about your real estate business and reviews, it is going to be pretty easy for millennials to move on to an agent who is easily accessible online.
The top 6 reasons Millennials want to purchase a home and the factors influencing their choice are featured below. It is important to recognize that location and job rank relatively high.
The full infographic and article are featured on RIS Media. Click here to read the ful article about the various characteristics of millennials and what they value in the homebuying and selling experience.
Millennials have an untapped demand for homeownership, which brings great opportunities for you as Realtors to strategically serve them.
Do you have questions about millennials, such as how to reach them? If so, please let us know by commenting on this post or sending them to firstname.lastname@example.org and they will address them in our next blog post. Stayed tuned for next weeks post!