24 Jul Millennials In The House
If the endless number of articles about the downfall of everything from focus groups to napkins wasn’t indicative enough, it’s clear Millennials have made their mark on various industries. Homeownership has proven itself to be no exception, though the results have been kinder to real estate than other industries. At the start of 2017, almost 30% of non-homeowners shopping for mortgages were between the ages of 18 and 36. This is an increase from previous years and in general, there has been a significant upward shift in interest from potential Millennial homebuyers. Now that the housing market has the attention of the largest living generation, sellers and marketers alike must work to maintain and utilize this newfound interest.
It’s no surprise that younger consumers have long preferred rentals over homeownership. Startup costs, acquiring a mortgage, and lack of experience are all obstacles that first-time buyers must face when navigating the housing market. Repeat buyers certainly have the advantage but shifts in the market have corralled Millennial interest in homeownership. Rising rent costs have put many renters in a financial bind. In recent years, rent prices have outpaced wages, with many households spending at least 30% of their income on rent and previous data shows this trend is sure to continue. We all know someone who’s mortgage for their three-story house is less than the rent for your 650sq/ft apartment. Millennials who are ready to settle into their first home are understandably considering other options.
Sellers have the advantage in the current market, but that doesn’t mean they won’t have to adapt to changing interests. Smart home technology is a major selling point for members of all generations. Generation Xers are more interested in products related to home security and energy savings and millennials prefer products that offer convenience like home entertainment systems. Owners who invest in various smart home products are likely to attract a larger swath of buyers, including the tech savvy members of Generation Y. There’s also the appeal of the suburbs. With new convenient ways of commuting cropping up every year, many are eager to move away from loud, expensive cities and into quieter, affordable communities.
As the market grows and potential buyers begin to shop around, it’s crucial for marketers to try and capture the Millennial audience while they are willing to invest. Since Millennials grew up at the start of the digital age, they are intimately familiar with the landscape and actively research online more than any other generation. Easily digestible content, an active presence across social platforms, and an informative, interactive product that highlights your expertise will appeal to this demographic.
Now that Millennials are throwing their hats into the homeownership arena, the market is growing and feeling the positive impact. As this generation continues to shop and invest, real estate has begun to adapt and shift to consider new interests, benefiting everyone in the long-term. So this time, let’s give Generation Y some credit for giving an industry a different perspective.
