Millenials & Their Impact on Real Estate
March 24, 2017 at 2:50 PM
Millenials & Their Impact on Real Estate
“The older generation of Vikings no doubt complained that the younger generation were getting soft and did not rape and pillage with the same dedication as in years gone by.” ― C. Peter Herman
Interesting trends are emerging in real estate and millenials are definitely having an impact. There is a trend towards smaller homes on smaller lots. According to one study, environmentally sensitive home construction is considered important, and 75% of potential buyers want to live in a walk-able community. There is a demand for urban settings and baby boomers are beginning to realize that urban living allows for ease of commute, and amenities are usually within a short walk or drive. It is expected that most suburbs in larger cities will become urbanized within the next 10-15 years.
For anyone over 40 years of age, a "millenial" seems like a foreign word to us. Sounding something straight out of Star Trek, a millenial is someone who is born between 1980-1995 and is slightly younger than the “Generation “X”. With this generation, new terms are becoming popular in our culture today such as "adulting" (which refers to acting as an adult would while giving up your youthful serendipity), "can't even" (when you don't want to just say that you don't understand something), "bae" (short for baby or babe but not to mean a small child) and "Netflix and chill" (which is something I can understand).
Interestingly enough, female millenials are out-learning males and are attending college/university by a staggering 2 to 1 ratio. Millenials are twice as likely in Canada to want to start a business this year compared to any other demographic according to a study conducted by Intuit.
One other interesting fact about millenials is that they are more likely to consider “pursuing their passion or dream” as being more important to them compared to having money or status. As well, the women in this age bracket are out-earning their male counterparts and out-earning them by 7-10%. This creates a very powerful group of real estate buyers and investors who are both well-educated and financially independent that is growing. How this also impacts real estate is that millenials are very tech-savvy with unlimited social media apps, and studies show that this age demographic who want to be self-employed overwhelmingly want to work from their home.
Communication is vastly different today than when I first entered real estate. The gleaming typewriter in the office and the “clickity clackity” noise that signified the impending listing or sales contract that would soon be completed has now been firmly replaced by the email, texting and document signing software that is continuously evolving. One of the ways that I have been trying to change with the times is to ask my clients how they prefer to be communicated with about events, updates and showing requests as I understand that this is a very personal decision that is different for every person.
Consumers now view between 3,500-4,500 marketing messages each and every day. Having a consistent message is critical to real estate success, and having a realtor who understands the needs of their clients is a primary need based on research. Today, whatever messages you put onto social media and the messages and remarks that clients put online remain there forever and can easily be searched by a quick Google search.
It was interesting to learn that social media has shown that 73% of salespeople who use social media sell more than those realtors who remain disconnected from Facebook, Twitter, etc. I suppose that it is all about recognizing the trends and new ways of communicating with clients. If for some reason you can’t read our newsletter this week, don’t despair as we will be tweeting on Twitter (@MMSHomes) the link to our team's blog (http://www.mmshomes.com/real-estate-blog) which can be found on our front page of our website (www.mmshomes.com) as well as on our professional Facebook page too (McCullough Marketing Team Vancouver Island).
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Brian & Myles McCullough
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