Millennials Are Changing Real Estate: Are You Ready?
Why Should Real Estate Professionals Care?
· The largest generation in history – Millennials – will likely have the biggest impact on real estate this year and for the foreseeable future.
· Millennials are entering the peak buying period and have surpassed Baby Boomers in total
· The average age of a licensee is 57 – they need to understand the Millennial Generation and learn how to market to them, know what influences their lifestyle, and determine the most effective avenues of communication.
· Millennials now represent the biggest group of homebuyers in America – 32% of the market. That number is expected to rise in coming years.
· Research shows that Millennial Generation is the group most likely to use an agent to purchase their home, with 89% of Millennials stating they would hire a real estate agent.
· 45% to 50% of Millennials originally found their real estate agent through a friend or family member.
· According to the 2015 National Association of REALTORS® Home Buyer and Seller Generational Trends study, the Millennial Generation – defined by NAR as ages 18 to 34 – made up 32% of all 2014 homebuyers. Baby Boomers (50–68) made up 31% of buyers last year, followed by Generation X (35–39) at 27%, and the Silent Generation (69–89) at 10%.
· 84% of Millennial buyers believe purchasing a home is a good financial investment.
· As a result of outstanding student loan and credit card debt, the average Millennial credit score is 625 (per NerdWallet,) meaning they are highly likely to qualify for more flexible FHA-insured home mortgage loans.
· Are you a managing broker/owner? Millennials are rapidly entering the profession and want to work with a company that is aligned with their philosophies and can meet their technology requirements.
· A BMO Harris Bank survey found that 75% of 18–34-year olds plan to buy a home in the next 5 years.
· Tech-savvy Millennials also tend to have very short attention spans which means a real estate agent catering to their demographic needs to capture their attention quickly to gain their business.
· The Bureau of Labor Statistics projects 12.2% employment growth for real estate agents between 2010 and 2020, which is slightly faster than average. An additional 45,000 jobs will need to be filled within that time period.
Thank you McKissock Learning for this information. Full disclosure, this information was pulled from a CE course.