Millennials: How to Succeed with the New Generation of Homebuyers
Millennials, young people born between the early 1980s and mid 1990s, are soon to become the majority of homebuyers in the United States. Statistically, they are 9% larger than their predecessor, Generation X. This generation has been met by severe economic strain throughout their lifetimes.
The 2008 financial crisis hit when many millennials were graduating college. Student debt has plagued millennials like no generation prior. And now, when many members of this generation are preparing to settle down, COVID-19 has shut down the world and disrupted the global economy.
So why are millennials pursuing homeownership now? Experts suggest a variety of factors have impacted this current trend. With new remote work opportunities and a global pandemic slowing down the speed of life, many millennials are ready to move out of the city and settle down in their first homes. This, combined with historically low mortgage rates, has resulted in a national inventory shortage.
In the next two years, about 80% of millennials will be searching for their first home. That’s 67 million prospective buyers who will be looking for an agent to assist with their home buying journey. So how can you attract clients from this demographic and help them find their perfect home?
4 Tips for Succeeding with Millennials
1. Know What Millennials Are Looking For
This generation is usually associated with paying an exorbitant amount of rent for a tiny downtown apartment. But with remote work and city-wide lockdowns, downtown has lost its appeal. Now, on average, millennials look for homes that are around 2,400 feet, which is a 41% increase from the year prior.
It’s unsurprising that after a year of sheltering in place, people in this demographic are actively seeking out large homes.At the top of millennials’ wish lists are garages, large kitchens, and outdoor living space. This reflects the overall trend of wanting more space in general. Lockdowns have left young people spending a lot more time at home. Having large properties with plenty of outdoor space has become essential to many young people’s lifestyles.
2. Remember the Effects of Student Loans
Student loan debt has become a national crisis, amassing 1.5 billion dollars nationally. There have been discussions to enact federal loan forgiveness programs of up to $10,000. In a recent survey conducted, 80% of millennials said they would benefit from these types of programs significantly.
Many millennial clients struggle with student loan debt and are cautious when they begin their process. A mortgage can often feel like another massive financial commitment. Agents should take special care with clients working with student loan debt. A specific payment plan for both a mortgage and student loans can be extremely helpful to efficiently plan for multiple financial commitments.
3. Find Fixer-Uppers
With fierce competition in the real estate market due to the current inventory shortages, many millennials are willing to take on the commitment of a fixer-upper. In Clever’s recent homebuyer report, 71% of millennials are willing to take on a house in need of a lot of repair. Part of this is due to the lack of listings, and part of this is due to the low price tag on fixer-uppers.
If you have a client interested in pursuing a property in need of major renovation, make sure they fully understand the cost of repairs. Sometimes, renovations can be much higher than a similar home, making it a bad investment in the long run.
4. Go Paperless and Digital
94% of millennials will use the internet to begin their home buying process. There has never been a greater demand for engaging, interactive digital real estate. With certain real estate conglomerates offering homes you can buy in one click, agents have to keep up with recent technology to stay competitive. Finding ways to go paperless and have your client go through the homebuying process from the comfort of their own home is very appealing to millennials.
With so many people beginning their home search online, digital media has never been more important. High quality photographs are a minimum. To stay competitive with the new generation of homebuyers, utilize video tours and 3D technology. Having shareable listings with high quality media to show your clients will help them connect with the property virtually and more easily envision their future. 3D tours can allow your client to browse listings at any time and easily send them to friends and family.
Overwhelmed by digital marketing and looking for some help? Listing3D has got you covered. With our exclusive marketing packages, we use the most up-to-date technology to advertise your work to the biggest and best audience.
Our packages include immersive virtual tours (created using 3D cameras), video teasers of the property, a 3D Flyer with a scannable QR code, and a landing webpage with all of your contact information, helping future clients easily contact you. With your talent and our technology, we’ll advertise your listings far and wide to help you sell your properties faster and more efficiently.