Why is it so Important to Market to Generation Y?
Millennials now comprise the second largest group of home buyers, making up 28% of the entire housing market2. This can be partly attributed to low interest rates and lower home prices, making it easier for this age group to buy. How much easier? Homeownership rates have fallen sharply in the past year among middle-aged consumers, while the rate for people between the ages of 25-34 has actually grown2.
One reason for this is that their parents are nearing retirement and are more than willing to assist in financing their first home. This generation also believes that purchasing a home is a much better investment than buying into the stock market because there is less risk involved. Real estate professionals should realize the emerging number of potential clients that are coming from this generation and take advantage of it.
What are they looking for In a Home?
Before we get into how to connect with Millennials, you must first know what they are looking for in a home. They aren’t your average client—they are looking for completely different features. Generation Y buyers tend to focus on open floor plans for entertainment, high ceilings, and the newest in technology. Fifty-six percent feel that technological capabilities are more important than curb appeal. Don’t be surprised if they are willing to pay less for a home that needs some fixing up—72% of Millennials consider themselves handier than their parents and want to rehab a home on their own . So, if you have a unique fixer-upper or high-tech home on the market, target this group buyers by highlighting these amenities (or lack thereof) to attract their business.
Marketing to Generation Y
Being born during the tech boom has made online activity second nature to most of this generation. With the ease and popularity of mobile accessibility growing every day, sharing information on-the-go has become as simple as a status update. Connecting with them through social media is the gateway to stirring up a buzz about your business. But remember, 98% are more likely to engage with a friend’s post, so don’t be self promoting1. Be authentic and converse with them like “real” people and leave the sales pitch behind.
