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Tap into generational trends to help your clients find their dream home.
A person’s age can affect a lot of things about their life, including what types of homes and neighborhoods they prefer living in. Millennials, Gen Xers and Baby Boomers are the three largest age groups dominating today’s real estate industry. The more you learn about their preferences, the easier it will be to help them find and buy homes. Of course, you will also need to understand their communication preferences so you can stay in contact with them throughout the process.
Millennials
About 35 percent of today’s home buyers belong to the millennial generation (also known as Gen Y). Young people born between 1980 and 2000 are currently the largest demographic of buyers, so REALTORS® should be invested in learning their interests and concerns.
Millennials tend to value experience more than anything. More than half say they prefer living in attached housing like townhouses and apartments because they value walking and short commutes. Millennials are more likely to live in urban environments where they have easy access to public transit, restaurants, bars and entertainment.
Take this into consideration when showcasing properties to millennials. You’re not just selling a house to your millennial clients; you’re selling a neighborhood. You can do this by discussing the neighborhood’s perks as well as a home’s good traits. Talk about bus routes and nearby train stations. Suggest local entertainment venues and businesses that shape the area’s personality.
Some research shows that millennials are eager to buy homes, but they face concerns that can make ownership difficult. For instance, getting approved for mortgages is a common struggle. Few millennials have the 750 credit scores needed to borrow from Fannie Mae. Even more concerning is that a third of millennials have scores below 620, which makes it nearly impossible for them to get mortgages.
This makes it crucial for REALTORS® to focus on the financial needs of buyers in this demographic. You may want to help them set realistic expectations based on their incomes and credit ratings. You can also help them explore borrowing alternatives.
If you’re not a millennial, then you may find it slightly difficult to communicate with younger clients who prefer sending texts and emails over placing phone calls. Learn how to use the latest devices and social media apps so you can remain in contact with them throughout the hunting and buying process. Otherwise, they may feel that you’re not on their side.
Gen X
Generation X isn’t the largest group of home buyers, but they do have the largest incomes. People between 36 and 50 are expected to earn a household average income of $104,700 in 2016. Considering that these households have more disposable income, REALTORS® obviously need to give them special attention.
While younger buyers want to live in urban areas, 58 percent of Gen X buyers want to live in the suburbs. Not just any suburb will do, though, since they also want to live in places that make it convenient for them to commute to work and take their children to school. This age group is also concerned about school district quality, so make sure you have plenty of information about the schools in each neighborhood.
Generation X has a love-hate relationship with email. They use it daily for work, so they don’t mind communicating digitally. This situation means that they often identify email with work. Unfortunately, many of them aren’t willing to use apps that can make communication easier and more fun. Unless your client is particularly tech-savvy, it’s best to communicate with them via email and phone calls. You may want to restrict emails to times when you need to send pictures or information-heavy messages.
Baby Boomers
Baby boomers have reached an age where they want to start downsizing. They’re entering retirement and watching their children build secure lives, so they don’t need large homes.
While many boomers are willing to downsize, they want to hold on to some of the advantages they enjoyed while living in large houses. For instance, a lot of boomers place emphasis on owning large kitchens, en-suite bedrooms for visitors and open floor plans. Pay attention to these features when choosing properties you want to show clients.
As boomers age, they want to choose houses that match their physical abilities. Many want to live in single-story homes that they can enjoy for the rest of their lives. They also want safety features like grab bars in the bathroom. They do not, however, want safety items to make their homes look like hospitals, so they prefer hidden features. A bathroom with a sturdy grab bar might get some attention, but a grab bar disguised as a towel bar will really intrigue them.
Boomers are a diverse group, so you should talk to clients about their unique preferences. Some are excited to leave suburbs behind so they can enjoy the walkability and excitement of urban areas. Others, however, prefer living in communities specifically designed for their age group. These communities often offer amenities such as fitness centers, pools, clubhouses and lawn care. Talk to your clients about what interests them so you can focus on properties they will love.
A large number of baby boomers have adopted smartphone technology, but you shouldn’t assume they prefer communicating via text and email. Unless your client has stated otherwise, use phone calls to stay in contact with boomers.
The Silent Generation
The Silent Generation, those buyers and sellers over the age of 70, represent the smallest share of buyers. Most of them have likely retired or scaled back their work demands, so they have the lowest median household income. They are driven to purchase by a desire to be closer to friends and family, and they are interested in a smaller home that is prime for their retirement. The Silent Generation is less likely to be interested in detached single family homes, unless it is fit for multigenerational living — preferring instead senior-related housing that meets their care needs as they age.
The Silent Generation wants to work with agents they trust and will likely want to talk in-person prior to agreeing to work with you. For them, their agent is a vital part of their home search process and the most frequently-used information source. If you are interested in specializing in the senior market, it could be very beneficial to obtain your Seniors Real Estate Specialist designation, as it will help you stand out to a demographic that very much prizes expertise and personalized service. They are the age group to most likely use their agent again, or recommend their agent to their friends.
Age group can have a significant effect on what people want from real estate. You can’t always predict what a home buyer will want, but understanding demographics can give you some insight into what buyers prefer.
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Precautionary Measures and Information Regarding COVID-19
As COVID-19 is predominantly spread through close contact, out of an abundance of caution, all in-person classes scheduled through April 30 will take place virtually.
RRES staff has reached out to those of you who have registered for an affected class with an option to transfer into an online option or reschedule for a later classroom date. CAR to You is available in the meantime to assist you with your education needs and we have a variety of classes being offered online and via webinar for your continued development.
About 35 percent of today’s home buyers belong to the millennial generation (also known as Gen Y). Young people born between 1980 and 2000 are currently the largest demographic of buyers, so REALTORS® should be invested in learning their interests and concerns.
Millennials tend to value experience more than anything. More than half say they prefer living in attached housing like townhouses and apartments because they value walking and short commutes. Millennials are more likely to live in urban environments where they have easy access to public transit, restaurants, bars and entertainment.
Take this into consideration when showcasing properties to millennials. You’re not just selling a house to your millennial clients; you’re selling a neighborhood. You can do this by discussing the neighborhood’s perks as well as a home’s good traits. Talk about bus routes and nearby train stations. Suggest local entertainment venues and businesses that shape the area’s personality.
Some research shows that millennials are eager to buy homes, but they face concerns that can make ownership difficult. For instance, getting approved for mortgages is a common struggle. Few millennials have the 750 credit scores needed to borrow from Fannie Mae. Even more concerning is that a third of millennials have scores below 620, which makes it nearly impossible for them to get mortgages.
This makes it crucial for REALTORS® to focus on the financial needs of buyers in this demographic. You may want to help them set realistic expectations based on their incomes and credit ratings. You can also help them explore borrowing alternatives.
If you’re not a millennial, then you may find it slightly difficult to communicate with younger clients who prefer sending texts and emails over placing phone calls. Learn how to use the latest devices and social media apps so you can remain in contact with them throughout the hunting and buying process. Otherwise, they may feel that you’re not on their side.
Generation X isn’t the largest group of home buyers, but they do have the largest incomes. People between 36 and 50 are expected to earn a household average income of $104,700 in 2016. Considering that these households have more disposable income, REALTORS® obviously need to give them special attention.
While younger buyers want to live in urban areas, 58 percent of Gen X buyers want to live in the suburbs. Not just any suburb will do, though, since they also want to live in places that make it convenient for them to commute to work and take their children to school. This age group is also concerned about school district quality, so make sure you have plenty of information about the schools in each neighborhood.
Generation X has a love-hate relationship with email. They use it daily for work, so they don’t mind communicating digitally. This situation means that they often identify email with work. Unfortunately, many of them aren’t willing to use apps that can make communication easier and more fun. Unless your client is particularly tech-savvy, it’s best to communicate with them via email and phone calls. You may want to restrict emails to times when you need to send pictures or information-heavy messages.
Baby boomers have reached an age where they want to start downsizing. They’re entering retirement and watching their children build secure lives, so they don’t need large homes.
While many boomers are willing to downsize, they want to hold on to some of the advantages they enjoyed while living in large houses. For instance, a lot of boomers place emphasis on owning large kitchens, en-suite bedrooms for visitors and open floor plans. Pay attention to these features when choosing properties you want to show clients.
As boomers age, they want to choose houses that match their physical abilities. Many want to live in single-story homes that they can enjoy for the rest of their lives. They also want safety features like grab bars in the bathroom. They do not, however, want safety items to make their homes look like hospitals, so they prefer hidden features. A bathroom with a sturdy grab bar might get some attention, but a grab bar disguised as a towel bar will really intrigue them.
Boomers are a diverse group, so you should talk to clients about their unique preferences. Some are excited to leave suburbs behind so they can enjoy the walkability and excitement of urban areas. Others, however, prefer living in communities specifically designed for their age group. These communities often offer amenities such as fitness centers, pools, clubhouses and lawn care. Talk to your clients about what interests them so you can focus on properties they will love.
A large number of baby boomers have adopted smartphone technology, but you shouldn’t assume they prefer communicating via text and email. Unless your client has stated otherwise, use phone calls to stay in contact with boomers.
The Silent Generation, those buyers and sellers over the age of 70, represent the smallest share of buyers. Most of them have likely retired or scaled back their work demands, so they have the lowest median household income. They are driven to purchase by a desire to be closer to friends and family, and they are interested in a smaller home that is prime for their retirement. The Silent Generation is less likely to be interested in detached single family homes, unless it is fit for multigenerational living — preferring instead senior-related housing that meets their care needs as they age.
The Silent Generation wants to work with agents they trust and will likely want to talk in-person prior to agreeing to work with you. For them, their agent is a vital part of their home search process and the most frequently-used information source. If you are interested in specializing in the senior market, it could be very beneficial to obtain your Seniors Real Estate Specialist designation, as it will help you stand out to a demographic that very much prizes expertise and personalized service. They are the age group to most likely use their agent again, or recommend their agent to their friends.
Age group can have a significant effect on what people want from real estate. You can’t always predict what a home buyer will want, but understanding demographics can give you some insight into what buyers prefer.
