Let’s face it, the economy has been sinking due to the ongoing pandemic. And the real estate industry is no exception. With no vaccine and the coronavirus largely unrestricted to ravage America, the lockdown and its negative effects are trickling down to the real estate market.
Fear not, however, millennials may give it a timely kick, back to the good times. Millennials, those born at the turn of the millennium, comprise the largest generation in America today, overtaking the older Baby Boomers.
Dubbed digital natives for their supreme adaptability to the internet, many millennials are in their 30s now. As such, these people are now building their own families. With the rise of remote work, they’re snapping up their first-ever property too.
Indeed, ignoring these demographics is tantamount to inviting disaster. Simply put, a real estate developer would do well-keeping millennials in mind.
If you’re a real estate developer, a little math should bid you well. Or face the consequences of a bad decision.
For one, reports show millennials are lording it over the real estate market. As reported, millennials are estimated to purchase 50% of homes. Compare that to Generation X (32%) and Baby Boomers (17%).
Quite easily, these younger classes are surpassing the total number of homes purchased by the previous generation.
Considering all this, top real estate property developers and real estate companies that prop up offerings that cater to this market would do well. This is as reported by Realtor.com in its “2020 Housing Market Predictions.”
The pandemic seems to have a positive “eye-opener” effect on millennials. Before, this market segment was marked as ambivalent and lacking in interest in scooping up real estate. These days, however, they’re leading the charge in the real estate market.
To note, those turning 30 years old this year forms the largest age bracket. They number about 4.8 million in America alone. At this point, their needs have widened. As they start forming families, they need to get a new home also rises.
Connecting with the Millennial Market
The millennials may look for homes to invest in, but they’re unlike their parents. These digital natives need immediate answers. This means that if you want to close more deals, you should have real estate agents present when they look for homes. These people, by the way, are well-informed.
According to statistics, millennial homebuyers are said to be content with 1,700 square feet of property. In comparison to boomers, millennials are more interested in quality and minimalism.
The younger generation has their own tastes and possibly quirks. These people are internet-centric and are therefore data-oriented. You will have to do your due diligence to corner your fair share of this rising market.
Most millennials are said to be first-time home buyers. Furthermore, millennials are more likely to purchase old properties compared to the previous generation. They see it as an investment. That should be a guide for sellers.
Real estate amidst the pandemic
Again, the virus may have a lot to do with the change in buyer persona. Before, luxurious condos were considered a great buy. But with the virus attacking dense spaces, the idea of sharing the elevator with a stranger is becoming a dangerous one. Instead, suburban homes have become a more attractive choice.
In this regard, you should suit your approach to this market. For starters, be a master of social media. Millennials are social media natives. They breathe Twitter and Facebook. You’d be severely handicapped if you don’t.
Secondly, sell community living. It’s not just about the comfort space can give; it’s about the relationships these young generations can build in the community. So a key question is: Is the neighborhood alright?
You may laugh at it but millennials and the internet are intertwined. It’s one of their defining aspects. For instance, most millennials rely on customer reviews, and they take it seriously. Take note.
About 99% of millennials are said to search online while looking for a home. But only 58% actually, end up buying the house they searched for.
Just because millennials rely too much on the web does not mean they do not seek help. It is undeniable that experience is the most valuable information.
In a survey, 74% of millennials seek help in understanding the housing market. A good real estate company should be able to capitalize on this.
Well, it’s basic marketing. Any real estate developer should know, it’s a millennial market these days. Putting that in mind can define whether your venture is poised to succeed or not. As with any marketing venture, chance always favors the prepared mind.