The Millennial Generation—sometimes known as Generation Y, is comprised of those between the ages of 25-34, so many of them are just about the perfect age for buying their first home.
Those that fall into the millennial category are said to be more tech-savvy, have short attention spans, multi-task and thrive on instant gratification. They also are never without a smart phone or tablet but are generally influenced by word-of-mouth and “word-of-mouse” advertising when it comes to purchasing decisions.
The problem for real estate agents is that this group is also nicknamed the “Boomerang” or “Peter Pan” Generation, because of people’s tendency to delay adulthood rites of passage like marriage, starting a career and buying a home.[1] In fact, over the past few years, millennials were more likely to live with their parents or share an apartment, but it seems as if that trend is changing.
A recent survey by homebuilder Pulte Group Inc., of millennials with an income of more than $50,000 who were currently renting, showed that 65 percent thought the idea of buying a home had increased in the past year. They view investment in real estate as a safe investment versus that of the stock market, in addition to low mortgage rates and good advice from parents (and sometimes the down payments to go with it). Additionally, a new survey by The National Association of Realtors (NAR), reports that millennials account for 28 percent of all home sales, trailing Gen X’ers by just a few percentage points. This is good news for an industry that’s suffered from years of skittish home shoppers and a lot of talk about home buying no longer being a part of the American Dream.
Understand their needs. When searching for homes, millennials value entertainment rooms over dining rooms and offices instead of extra bedrooms. They want the latest in technology to control the heat, air, lights or a security system with their smartphones and tablets. Environmentally friendly fixtures and an outdoor living space are also sought after amenities in a home.
Get visual and target mobile devices more than ever. The shift from desktop to mobile is happening across a variety of activities including social networking and digital video viewing. eMarketer recently reported that adults spend 44.4% of their overall media time on digital including 19.8% on mobile devices which has almost tripled since 2011 and now surpasses desktop by .3 percent. Further, the share of all tablet time spent with video is estimated to nearly double this year to 19 percent. That said, real estate professionals need to appeal to this group by aligning their marketing efforts with millennials habits and the means by which they are consuming media. Old school marketing need not apply here so don’t call or mail millennials. Interact with them through visuals like video and optimize your web sites for mobile devices or you’ll be in “no-man’s land” and build relationships with them through social media.
When you think like your customer, your marketing becomes better. Any good broker knows that social engagement leads to sales, so connect with millennial customers on Facebook and Twitter. Reports show that 80 percent of all homes were purchased by this group after an online interaction. Engage with them on these channels by asking questions, hosting photo contests, Twitter chats and conducting surveys. Homes.com has a plethora of marketing resources to help you create content and interact with consumers in these social spaces (see sources below).
Show them why you are the agent for them. Don’t speak down to them. For a generation that relies on word-of-mouth (and mouse), start collecting and sharing testimonials from your clients on all of your marketing channels. They’ll serve as your best brand advocates by spreading the word and converting those millennials into your next client. Most importantly, regardless of your age, represent that you understand their wants and needs in a home.
If you’re interested in growing your business and connecting with millennial buyers, Homes.com is your place to grow. Homes.com is growing too – with a national TV campaign reaching
260 million consumers on targeted home networks.
For inspiration on how to build relationships with millennials through social media and video, visit these resources:
-Video Content: connect.homes.com/blog (Instagram Videos: 15 Seconds of Marketing for Real Estate Pros and Video Content: A Rising Trend in Real Estate)
-Download FREE Social Media eBooks: connect.homes.com/learning
-Twitter chats: blog.homes.com
-Photo contests: blog.homes.com (Summer Staycation Photo Contest and Spot the Differences)
[1] Wikipedia: Generation Y