What We Can Learn About Millennials from Real Estate
by Stacie Hoffmeister | 26 November 2014
Reading about an industry outside of our own can be like opening up our mind’s window and letting a fresh breeze come in.
Observing how the real estate industry is addressing (or failing to address) the opportunities of modern marketing enables us to draw conclusions and insights that reach beyond the white picket fence. A read of the articles included at the end of this post suggest several actions that will strengthen brand value regardless of industry:
- Start tailoring your marketing plans to millennials. The Demand Institute (a collaboration between The Conference Board and Nielsen that provides economic data and insights on consumer demand) states in a recent report, “Today, there are just 13.3 million households headed by Millennials, but this number will swell to 21.6 million by 2018.” I still meet CMOs who do not consider Millennials to be a target consumer segment. Really. Does your current marketing strategy reflect a focus on millennials? Why or why not?
- Challenge myths with hard data. While many journalists and bloggers perpetuate the idea of millennials eschewing homeownership and suburbs for cities and shared apartments, research says that Millennials want to own homes and are working towards it. Financial set backs such as high student loan debt delays buying a home but does not thwart the aspiration. What myths have you accepted as truth in your own industry? Are they holding back your business?
- Remove barriers to purchase. Flexible financing, mortgage education, creating amenity rich suburban spaces, and offering lease-to-own home contracts are all non-traditional ways of shrinking the aspriation gap and removing the barriers that keep millennials from purchasing homes. Do you know your target consumer’s barriers to purchase? How can your brand be useful in lowering these barriers?
What follows are 10 articles on Millennials and Real Estate that will inform the minds of those inside and outside of the industry. (The curious may find a free fact sheet that summarizes the key implications about Millennials and Real Estate here.)
- Christina Rordam: Marketing homes to Millennials: Millennials get a bad rap. Often stereotyped as narcissistic and lazy, deemed by some to be the “Me” generation, they are widely and sometimes unintentionally overlooked by real estate practitioners and home sellers. – by Christina Rordam – http://www.wpmobserver.com/news/2014/nov/12/christina-rordam-marketing-homes-millennials/
- Millennials are fueling a rental boom but when will the tide turn?: Millennials are holding off on buying homes. The result: an extended rental trend among 25- to 34-year-olds that is bringing real estate opportunities of its own. – http://www.philly.com/philly/classifieds/real_estate/20141123_Millennials_are_fueling_a_rental_boom_but_when_will_the_tide_turn_.html
- Millennials Headed to the Suburbs?: The all-too-common belief that Millennials are into renting and not owning is, according to a new study from Nielsen and The Demand Institute, not exactly true. The report says when it comes to having an economic impact, “Millennials are no longer Generation Next, but rather Generation Now.” – by Rieva Lesonsky – http://smallbusiness.foxbusiness.com/entrepreneurs/2014/10/27/millennials-headed-to-suburbs/
- How Millennials Could Be Housing Heroes: Millennials could be the serious boost the housing market needs to fully recover, but the selfie generation – those born in 1981 and later – faces some serious obstacles, from looming student debt to a tight credit market. Further, buying a home in the U.S. – by Katherine Peralta – http://www.usnews.com/news/articles/2014/09/17/how-millennials-could-be-housing-market-heroes
- Millennials Want Houses, Just Like Everybody Else: The proportion of homeownership among young adults has fallen from a third to a quarter over the past half-century. But the idea that today’s millennials are allergic to deeds and mortgages is a myth. – by Peter Coy – http://www.businessweek.com/articles/2014-09-16/millennials-do-want-their-own-homes
- What millennials want in a home: As millennials reach peak home-buying age, their needs and wants will shape the future of the housing and mortgage industries—much as the boomers did before them—based on the sheer number of millennials out there… – by Amy Hoak – http://www.marketwatch.com/story/what-millennials-want-in-a-home-2014-09-15
- Hispanic Millennials Seeking Education and Financial Stability Before Home Ownership: …some sources have said that Hispanic millennials are the driving force behind real estate growth. In fact, the National Association of Realtors stated that millennials claim the greatest share of recently purchased homes, with Hispanics representing 20 percent of those numbers. – by Nicole Akoukou Thompson – http://www.latinpost.com/articles/20578/20140903/hispanic-millennials-seeking-education-financial-stability-before-home-ownership.htm
- Millennials: Growth and Opportunity: In a study that took place this summer, Chicago-baseed BMO Harris Bank found that about three-quarters of millennials are already planning on purchasing a home within the next five years. Nearly four out of 10 millennials plan to do so within the next two years, and 15 percent in the next year. – by Lisa Mihelcich – http://rismedia.com/2014-11-23/millennials-growth-and-opportunity/
- Liberty Street Economics: Taken together, these findings suggest that with a stronger economy and eased credit standards, flows into homeownership would pick up. . – by Andreas Fuster, Basit Zafar and Matthew Cocci – http://libertystreeteconomics.newyorkfed.org/2014/09/why-arent-more-renters-becoming-homeowners.html#.VBCzn-TulSI.twitter
- 4 Insights about Millennials’ Path to Homeownership: Recently Google reported several positive house hunting trends including the news that Millennials are setting their sights on homeownership more so than other age groups. – by Patty McNease – http://rismedia.com/2014-11-06/4-insights-about-millennials-path-to-homeownership/
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Stacie Hoffmeister is an organizational coach and branding professional. She is the founder of organizational coaching firm, Facts and Heresies. Facts and Heresies helps individuals step up into their next level of personal and professional potential. Based in the New York, NY and Westchester County, NY area, Stacie serves individual professionals and organizations in her area and all over the world.