The Millennials are here – and they are rocking the real estate market. According to data from the US Census Bureau, millennials (born 1981-1996) made up the largest population group in the US in 2021, followed by baby boomers (1946-1964), Gen Z (1997-2012), and Gen X (1965-1980), respectively. And as this generation floods the housing market, real estate professionals simply cannot miss out. What does the home buying process for this age group look like? How can realtors target millennial homebuyers?
5 Tips for Real Estate Marketing to Millennial Home Buyers
- 1. Your real estate company’s social media presence matters to millennial homebuyers
- 2. Millennials homebuyers look for your guidance
- 3. Floor plans and professional photography on listings are important
- 4. Leverage up-to-date technologies: live stream, virtual reality, smartphone apps
- 5. Millennials look for a modern home design with decent quality and affordable price
- Marketing to Millennials buying homes: Conclusion
According to the 2022 NAR Home Buyer and Seller Generational Trends, millennials make the largest (and growing) share of homebuyers at 43 percent.
Their needs and buying patterns are vastly different from the previous generations. First of all, this age group tends to marry later: Older Millennials (32 to 41 years) had one of the highest shares of married couples (64 percent), while Younger Millennials (23 to 31 years) had the highest share of unmarried couples (21 percent) buying homes. Moreover, millennials are the most educated generation and wait longer to buy a first home than previous generations. Due to the effects of the Great Recession and rising student debt, millennials have been slower to buy their first homes. Eighty-one percent of Younger Millennials and 48 percent of Older Millennials were first-time homebuyers, more than other age groups.
Moreover, this age group is changing the game with technology. Millennials are tech-savvy and most likely, traditional marketing tactics don’t always resonate with millennial home buyers. Using the internet and mobile devices to search, view, and buy homes is the norm among millennials. According to the 2022 NAR Home Buyer and Seller Generational Trends, 99% of millennials used the internet to get information about the home buying market. However, While the internet is increasingly utilized throughout the home search among all age groups, buyers continue to need the help of a real estate professional to help them find the right home, negotiate terms of sale, and help with price negotiations.
Ready to understand how to better market to millennials homebuyers today? Read on to discover 5 things Millennials look for when they are buying homes.
5 Tips for Real Estate Marketing to Millennial Home Buyers
It’s no secret that millennials are social media fanatics. That is why they expect to see their agents and look for listings on Facebook, Twitter, Youtube, Instagram, and even Tik Tok. Pinterest is also very popular among millennials who want to find interior design inspiration or drool over the architecture of their ideal dream home. If your real estate business doesn’t have a solid social media presence on all relevant networks for consumers (Facebook, Instagram, Twitter, Snapchat, etc.), you are already missing out.
According to the Goldman Sachs Report, millennials are twice as likely to trust a brand that is widely present on social media. So, having a website is not enough. And trying to engage them with cold calls is among the old methods that do not work anymore.
Darren Robertson, realtor and Founder of Northern Virginia Home Pro, agrees with this sentiment, stressing the importance of graphics: “In these troubling times, creating graphics, videos, and virtual staging or virtual tours and showcasing these through social media can really help with house sales. But remember, authenticity is everything when it comes to real estate, so make sure your visuals are honest, appealing, and selling a lifestyle others want to buy into.”
Also, they are more likely to search for services via social media, which turns these platforms into promising marketing channels. For example, realtors can promote house listings with infographics, great photos, floor plans, and videos on Facebook. In addition, they can provide links to blog posts where millennials can read more guides on the buying process, for example how to buy a house and all the processes and paperwork.
It’s not about blasting ads there. It’s about building relationships, one-on-one each time. Also, having conversations, replying to their messages, and giving away free helpful materials are among good methods to build trust. It will benefit in the long term.
2. Millennials homebuyers look for your guidance
Keep in mind that 66% of millennials are first-time house buyers, therefore they look for guidance throughout the whole process. This age group values an agent who helps them understand the home purchase journey.
This generation doesn’t want to be pitched just to buy something. Home buyers are entrusting their agents with one of the biggest purchases they will ever make and having someone they can relate to, trust and vibe with is important. You have to show them you will have their best interest at the forefront of negotiations. According to the 2021 NAR Home Buyer and Seller Generational Trends, 98% of buyers rated “honesty and integrity” as the most important factor when choosing an agent. Real estate agents need to be trustworthy, honest and show dedication to assisting customers every step of the way.
Given that Millennials look for information online and 63% percent found the home their purchased on the Internet, you have to adjust your marketing strategy to emphasise how you will take care of them, starting from your website and social media channels.
3. Floor plans and professional photography on listings are important
Showcasing floor plans is a must with real estate listings, regardless of the state of the market. According to the National Association of Realtors Survey of Home Buyers and Sellers, floor plans were the 3rd most valuable website feature (after photos and property details) among all home buyers who search for a house on the Internet. Home buyers want to see the house’s space and rooms in the most understandable format and the millennials are not an exception. For that reason, a professional, customized floor plan is a must for every realtor who wants to sell their houses fast.
When millennials look for their dream home, they want everything to be planned in detail before making any decisions. And why wouldn’t they? You have to keep in mind that for many of them is their first house and one of the biggest purchases they will ever make in their life. Therefore, digital, beautiful floor plans play an essential role in the home buying process, besides good-looking pictures. Home buyers want to understand the usability of the space, where window and door placements are, and what storage capacities the property offers. That is part of what you can get by viewing floor plans. They go hand in hand with professional real estate photography and help buyers envision themselves inside the property.
4. Leverage up-to-date technologies: live stream, virtual reality, smartphone apps
Millennials are highly skilled in using new technologies. Adopting cutting-edge tech tools in the home selling process will enhance your image as a capable, cutting-edge professional. It is the key to attracting younger customers.
Nowadays, live stream video is very easy to make (Facebook, Youtube, Instagram, and Tik Tok all integrate the live stream function into their platform). People and businesses stream games, events, webinars whatever they can think of. This opens up an opportunity to communicate with other people in a more personal way.
In the real estate industry, letting home buyers see the house and properties through the live stream is much faster than traveling to a place. Of course, a personal visit is also important but it can be made later, after the “live stream trailer”.
Virtual Reality (VR)
VR is a fast-growing trend. A great part of young people is familiar with VR glasses, 3D virtual tours, or 360-degree images. This will bring advantages to the technology of early-adopted real estate brokers to win over their competitors.
Being responsive to nowadays tech trends is the key. The housing market keeps changing, and the way it is offered to home buyers has also improved. It is worth the effort to learn new things and then inspire young customers most comfortably.
There are not only games on iOS and Google Play but also applications that make real estate professional’s life easier. In many cases, companies decide to have an app in the Play Store just to improve their exposure with the technology adopters. However, some developers want to solve a problem in real life, which results in great apps that many people appreciate. Similarly, realtors should also think about how they can make the home buying process more comfortable with the help of smartphone apps.
These are just three examples from a world that is full of ideas and possibilities. Technology may change anytime, yet it is still an exciting area to learn and adapt to one’s business.
5. Millennials look for a modern home design with decent quality and affordable price
Not all the properties which were listed are sold. According to A Guardian article in 2018, “more than half of the 1,900 ultra-luxury apartments built in London last year failed to sell”.
Real estate agencies can’t sell all the houses, and luxury homes are just a part of it. The Londoners said:
“We’d be much better off with decent quality but lower-spec homes built for actual Londoners. What’s the point in having private cinema rooms that sit empty and resident’s swimming pools with no one swimming in them; it just seems wrong.” (The Guardian)
Likewise, nowadays the millennials do not want complicated furniture or design. In that case, keeping it simple, using toned colors and Scandinavian design results in more sales.
This does not mean that the house design should be plain and too simple. This generation has the research in their blood and a Google search can suggest many houses in the neighborhood with better designs.
A simple, clean and lively home is what the millennials look for. Photo by Timothy Buck on Unsplash.It is best to keep the home design updated. That way, the millennials see that it follows up with the trend. Besides, if the price is affordable and the quality is acceptable, they will easily decide to buy it.
Marketing to Millennials buying homes: Conclusion
Millennials are a demanding age group. Buying a home in 2022 is no joke, and real estate agents need to understand the different preferences and needs, as well as apprehensions of what is now the biggest group of homebuyers. Compared to their parent generation, Millennials shop for homes differently than older generations, and the housing market and mortgage industry must adapt to keep up.
Key Takeaways: Top 5 things millennials look for when buying homes
- Your real estate company’s social media presence matters to millennial homebuyers
- Millennials homebuyers look for your guidance
- Floor plans and professional photography on listings are important
- Leverage up-to-date technologies: live stream, virtual reality, smartphone apps
- Millennials look for a modern home design with decent quality and affordable price
Now it’s your turn!
What do you think about this post? How do you market to millennials buying homes?