Millennial consumers (generally speaking, those born during the years 1982-2000) are currently in vogue, and they are here to stay. This age group is expected to have the biggest spending power of any generation by 2018. And many of them are now of age with regard to purchasing a home. Ignoring them spells death for your business – if not now, then in the near future.
Here are some statistics that will help you understand them better and make your real estate business a great success.
By 2025, Millennials Will Account For 75% of the Global Workforce
In less than a decade, Millennials will have taken over most of the jobs across the world. Those who work, earn money. And those with money affect the way businesses operate. Three-quarters of the job market is not something you can underestimate.
Millennials have money to burn and will come into more money as they continue to fill in the vacant job positions left by their predecessors. It is in your best interest to truly understand how their minds work.
You need to learn what they like, what they hate, their spending habits, what causes they support, their internet habits and so on. This is the only way you can get your foot into the “door” that is their large spending account. And if you can do so ahead of your competition, then you will be in a good position to get ahead and make your real estate business a success.
After all, these are the people who will end up forming the bulk of your real estate clients in the next decade or so.
48% of Millennials Are Influenced By Word-Of-Mouth on Their Product Purchases
Millennials are very tech-savvy. And one of their technological tools of choice is the smartphone. Considering that 41% of Millennials have already made purchases with their smartphones and that 85% already own a smartphone, you would do well to adapt to their online behavior.
Since Millennial consumers are fans of mobile gadgets, it is important for you to ensure that you not only have a website, but also make sure that your site is mobile-friendly.
And whatever you do, remember to incorporate online-based payment systems like PayPal, MasterCard, Stripe and Visa to allow your Millennial customers to pay using gateways that they prefer. If you don’t make it convenient to do so, you will end up losing a lot of potential customers.
41% of Millennials Have Already Made Purchases with Their Smartphones
Millennials are very tech-savvy. And one of their technological tools of choice is the smartphone. Considering that 41% of Millennials have already made purchases with their smartphones and that 85% already own a smartphone, you would do well to adapt to their online behavior.
Since Millennial consumers are fans of mobile gadgets, it is important for you to ensure that you not only have a website, but also make sure that your site is mobile-friendly.
It does not matter whether you are a real estate investor or agent. You need to have a mobile app that will help focus the attention of your target market on the products and services that you offer.
And whatever you do, remember to incorporate online-based payment systems like PayPal, MasterCard, Stripe and Visa to allow your Millennial customers to pay using gateways that they prefer. If you don’t make it convenient to do so, you will end up losing a lot of potential customers.
Is that something you want to deal with?
The Median Salary for Full-Time Millennial Workers Is $33,883
Millennials have money problems. A median salary of $33,883 in an economy with a high cost of living is nothing to laugh about. It is also important for you to bear in mind the college debt that the Millennial generation carries. In fact, 57% of all Millennials believe that student debt is a major problem for young people in the country.
It is generally recommended that people spend no more than 30% of their income on a mortgage. With about $34,000 in income, Millennials will be looking for deals that offer them the best value for money.
What that means is that you need to meet your target consumers at their point of need. Invest in low- and middle-income housing that is decent. You want to be able to attract people looking for affordable housing that they can take pride in.
If you are a real estate agent, consider finding real estate investors who want to rent out affordable housing to up-and-coming professionals. Reach out to them and offer them your services. You will be amazed at how many opportunities exist in this sector of the real estate market.
43% of Millennials Are Non-White – The Largest Share of Any Generation
It is expected that the majority of people in the United States will be non-white by 2043. Already, 25% of Millennials speak a language other than English in their homes.
It’s important for you to pay attention to the change in demographics with regard to Millennials. If the people in your locale speak English and another language like Spanish, then it’s important for you to incorporate the second language if you are to reach a larger audience.
If you are a real estate investor, it pays to advertise your homes for sale in two or more languages in order to raise the chances of selling the home faster. You should also consider having a section of your blog dedicated to the second most popular language spoken by your potential customers.
The same applies if you are a real estate agent. You may want to learn a second language just so you can communicate better with a larger audience. Alternatively, you can hire an employee or two who are bilingual to avoid losing potential clients over language barriers.
69% of Millennials Believe That Regular Office Attendance Is Unnecessary
Millennials are mobile people in more ways than one. They do not believe that the traditional 9-to-5 job is something people should always aspire to have. They have a tendency to move from one job to another. That is why the average job tenure is only two years!
In addition, Millennials tend to have a bigger appetite for risk, which explains why 54% of them either want to start a business or have already started one.
You need to pay attention to the implications of the behaviors of the Millennial generation. The fact that they are more interested in jobs they can do at home and are more willing to go into business for themselves, means that you should provide them with real estate products more suited to their temperaments.
Since many of them do not intend to stay in one place for long, you should consider helping them access accommodations they can either quickly sell or just lease until it is time for them to pack again. Think in-demand housing in popular areas or rental units close to social amenities that Millennials will find attractive.
Just 26% of Millennials Are Married
There is a vast difference between the demands of a family and the demands of a single renter or homeowner.
Considering that Millennials are postponing marriage for financial reasons, you would do well to turn your attention to the needs of the majority who are single.
What do single customers want in terms of housing?
They certainly are not interested in a home with many bedrooms that will remain empty – not unless they are financially savvy and intend to rent out the extra space if they can afford it. What most want is a home close to social amenities like restaurants, bars and clubs as well as transportation networks. And most importantly, many of them are simply looking for a small, but affordable and decent place to stay so they can save money to pay off their debts.
What does this Mean for the Probate Investor?
Remember, Millenials will become recipients of a $30 trillion inheritance in the not-too-distant future. This makes them a force to be reckoned with.
Therefore, they will be more willing to consider probate real estate because they understand the value that exists in this sector of the market.
The discretionary funding they will have will enable them to purchase or rent probate real estate that provides great value for money — something they need desperately.
Also, they will have to interact with probate real estate agents and investors like you as a result of inheriting assets from the previous generation. As a result, Millennials are among the most promising clients you will ever have.
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