Understanding Millennial Home Buyers

This blog was originally posted on RichardFunchess.com

Richard Funchess Millennial Home Buyers 1

As of three years ago, Millennials have become the most prominent generational group America has seen, even surpassing the Baby Boomers. Because of this, they are now the largest group to buy homes, so marketing to this audience is crucial. In order to market correctly and efficiently, it’s important to understand this demographic.

Millennials, also known as “Generation Y,” are people born between 1980 and 2000, making them between the ages of 18-38. Many of these people are in the midst of buying their first home and starting their journey with investing in real estate if they’re financially able. It’s important to keep in mind that many carry a heavy weight of student loan debt. According to CNBC, the average student debt for Americans in their 20’s is just above $22,000. That and credit card debt makes for an average credit score of 625 for a Millennial.

The National Association of Realtors, in conjunction with Inman, published a report in 2015 titled Home Buyer and Seller Generational Trends. This report provides realtors with useful facts on the behavior of Millennials in the process of home buying.

Thanks to recent technology, the Millennial generation is the most comfortable with using social media and texting than any other age. Nearly 94% of them will use websites and smartphone apps to see available homes for sale. Even though they will find these opportunities online, 87% of them find value in using a real estate agent for their expertise. Millennials will also use their online proficiency to find the real estate agent they wish to work with. While 90% of them will use a real estate agent, many are difficult to please.

Since many of these Millennials are mainly using the internet to find real estate agents, I strongly urge any realtor to boost their online presence if you wish to work with this audience. I’m learning in my college classes that having a website and a strong social media presence crucial to growing your clientele. Communication with this demographic is much better conveyed through blogs and videos than the standard newspaper, flyers, and mail techniques. Some of the heavy hitting social media profiles are LinkedIn, Twitter, Facebook, Pinterest, and Instagram.

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