Believe it or not, millennials (1980-1998) are turning 40. As this demographic comes of age, they are finally starting to trade in leases for single-family homes. Yet for many of these newly-minted middle-agers, homeownership remains elusive. While 65% of millennials regard homeownership as a sign of success, the rising cost of real estate makes it hard for many of them to find a home they can afford.
If you’re a real estate agent looking to attract clients in this important demographic, here are the top five reasons why millennials matter in real estate.
1. This is Their Moment to Shine
After notoriously postponing homeownership for years, millennials are now the biggest homebuyers of any generation. Almost half of them — 43% of millennials, to be exact — are looking to buy a home in 2022. The pandemic may have given them the edge, with the money some families saved during the lockdowns making it possible for them to afford their first down payment.
2. This Won't Be Their Last Home
Millennials came of age during one of the toughest times to be a first-time homeowner. They faced historically low levels of inventory and rising sales prices in housing markets across the United States. It stands to reason, then, that most first-time millennial home buyers are having to compromise on their starter home.
Their frustration provides you the chance to build a lasting relationship, however. You'll know that your client will need to use your services down the road when it's time to upgrade to their forever home.
3. They Need Their Hand Held
Two-thirds of millennial buyers are purchasing their homes for the first time. That means many of them don't understand the process, either strategically or financially. Millennials also tend to be both more apprehensive than previous generations and more aware of real estate investment as a vehicle to increasing their net worth.
A way to build lasting relationships with millennial clients is to give them access to the information they need. Great website content that breaks down the buying and selling processes — including a comprehensive breakdown of lending options — is a start.
4. They Are Tech Savvy
Millennials are the first generation to be raised with technology as a part of their everyday lives, and as a result, they understand how to implement the latest trends. You'll go further with millennials if you use tech to reach them. Virtual tours and live streaming allow millennial buyers to view properties from their smartphones, and making use of real estate phone apps, like Zillow and Redfin, can help them narrow their focus.
You'll also want to up your social media marketing presence if you want to work with this demographic.
5. They Are Looking for Simple Design
Millennials don't want complicated design or the previous generations' stuffy "brown furniture." They prefer toned colors, minimalist decor, and Scandinavian modern. If you are staging a home to appeal to millennials, make sure that the space adheres to these design criteria so that they can imagine themselves living in the space.
Build Client Relationships that Last a Lifetime
Millennials have gone from waiting on the sidelines to being a major force in the real estate world. You can be there to guide them along the way. Whether you already have your real estate license, or you are just getting started, Aceable Agent will help you take things to the next level with resources, career advice, and continuing education.