The housing market is changing thanks to millennials
Moving to Boomers … Millennials have arrived and are changing everything from soup to nuts, including how today’s housing market works. The generation of Millennials born between 1981 and 1996 had an army of about 71 million people in 2020, while the baby boomers – born between roughly 1946 and 1965 – numbered around 68.7 million. Not only are millennials currently the largest population in the country, they also have income rates two to four times higher than any other age group, according to data from a recent study by the Pew Research Center.
Housing market website Zillow found that roughly half of all home buyers today are under 36 years of age. Zillow also reported that about half of all salespeople under 41 are at home, doing so with cash from their higher incomes, growing careers, and money “left over” after paying off student loans and other personal debts.
The National Association of REALTORS® (NAR), the country’s largest membership-sponsored association of professional real estate agents and brokers with 1.5 million members, found that 99% of millennials use the internet not only to find a home, but there too where you currently live. but in places where they would like to live. With remote work becoming a reality for so many, millennials are on the go, choosing where they want without fear of losing their jobs.
Not only is the higher-income generation of Millennials the largest population group in the country, but Millennials are the first to be fluent and comfortable in using technology in every aspect of their lives, including buying and selling homes, are familiar. In mid-2021, 95% of millennials were using the internet looking across the country for homes that they might want to buy.
Similarly, NAR found that by 2021, 95% of Millennials would like to know, do, or want to know about the home buying or selling process online, including researching and finding lenders, mortgages, mortgage assistance programs, reviews, property transfers, etc. and on they prefer to do it all with just a click or two.
With just one click, potential buyers and sellers can find an ever-growing range of instant information about the house and its surroundings, starting with list prices; Number of bedrooms and bathrooms; Number of square meters of all rooms; Floor plans: and prices of comparable apartments for sale in the neighborhood for information on public and private schools in the neighborhood; Travel time to local workplaces, neighborhood stores, grocery stores, restaurants, parks, and medical facilities; Walkability; public transportation; religious establishments nearby; Asset and personal tax information, liens and bankruptcies. The list goes on.
Millennials even “find” their real estate agents online, depending on how engaging and content-specific the agent’s website is. (Think of the design and clean lines of an Apple Store.) Millennials want to know who these brokers are: they want to see and learn about their offers; they want to learn and learn about their specialties and expertise – luxury homes, first-time buyers, second home properties, ranch / rural properties, and investment properties; they want to learn about their community activities and passions outside of business hours.
Millennials want to identify something in their potential realtors that relates to their own housing needs and to them personally. Why do millennials hope for both a transactional and a personal connection with a broker? Because the home buyer or seller of the millennial wants to be seen as a collaborator, not just a commission check. Even after doing their research online, Millennials tend to choose the very first realtor they meet and sign up with them.
Which leads us to this question: in this millennial-inspired world of real estate, do brokers and agents continue to add substantial value to the home buying and selling process?
Definitely yes … probably more valuable than ever. The value of brokers and brokers revolves around their ability to facilitate the home buying and selling process in a fast-paced, digital world. In order to facilitate real estate transactions quickly and effectively, brokers and brokers must have these four skills:
– Expert and in-depth local / regional market knowledge
– Negotiation skills
– Proficient communication skills that are essential for building customer relationships
– Experienced millennial-friendly marketing skills
Not only do agents and brokers need to have all of these expert skills, they also need to be able to digitally communicate their expert knowledge and skills … no ifs or buts. The millennial market requires real estate agents to take advantage of the speed and simplicity of digitization.
Being digital and tech savvy is now and will continue to be a requirement for agents and brokers to generate, sign, and nurture their potential new and repeat customers. And where do agents and brokers communicate digitally with their customers? Thanks to millennials, of course, on their customers’ mobile devices.