Archive for May, 2010
Is Generation Y Our Savior?
Posted by Sibet B Freides in Marketing, Real Estate Sales, Real Estate Trends on May 7th, 2010
A recent Builderonline.com article asks the question, “Can Gen Y Save Home Building?” The answer to this question may not be as cut and dry as some would think. The answer also depends on what kind of homes your talking about.
Generation Y is no doubt a powerful group. As the article notes, this group took down the music industry and put our current president in office. Their influence and buying power rival that of the baby boomers and most of these eco-boomers are about to be new-home buyers. This sounds like an industry stimulate but experts are hesitant to rejoice.
It’s not a question of will but one of ability. The post recession world will be a limiting place for Generation Y. A large number have been unemployed and others have seen their down payment help from mom and dad vanish. Another interesting thing to think about are the lingering baby boomers that are postponing retirement. The recession has caused most boomers to delay retirement keeping them in the workplace longer. Not only have we seen minimal employment opportunities for Gen Y but because baby boomers are delaying retirement, job turn over is at a low.
Researchers have done plenty of studies on Generation Y because they understand the market power they have. These consumers are tech savvy, eco-minded, diverse, urban, and social minded. All of these characteristics will play into their housing choices. This article brings up a good question though. Should we be building to suit just the needs of Gen Y today? How sustainable is this?
In the end price and need will play a more important role in the buying process. Gen Y will soon have kids. Will we see them move towards the suburbs once their kids enter school? This plays an important role in the home buying process and most cities don’t have good public schools. It will be interesting to see how this generation handles growth.
The Metlife Study Of Boomers In The Middle
Posted by Sibet B Freides in Demographics, Real Estate Economics, Real Estate Trends on May 6th, 2010
This study examines the largest portion of the baby boomer generation, which are boomers born between 1952 and 1958 that will be 52 to 58 years old in 2010. MetLife describes it as the traditional middle child situation that can be seen in most families. This age group shares many of the same characteristics of both the younger and older boomers but also bridges the gap between them by sharing some of their key characteristic. This Middle Boomers represent 38% of all boomers and about 10% of the U.S. population making them an important demographic for homebuilders specializing in retirement living.
Key Characteristics of the Middle Boomers
- More than half still have children living at home
- Two-thirds have one parent still alive
- More than 60% are still working full-time
- Describe themselves as being in “good health”
- Concerned about the affordability of future health care costs
- 86 % are homeowners
- 72% have been providing financial assistant to their children or grandchildren
Where do they stand financially?
According to the study, 50% of the Middle Boomers consider themselves behind on their retirement savings. This has a direct correlation with the majority still holding full-time jobs, the 8% working part-time, and the 5% looking for work. With their children living at home and receiving financial support, the Middle Boomers like most other boomers are facing a retirement like no other. With so many financial burdens and raising concerns of health care costs, boomers are being forced to change the way they view retirement.
The study notes that priorities are shifting away from traditional resort style retirement. Middle Boomers, along with most boomers, are becoming more concerned with their families future, financial security, and personal well-being.
This study clearly reveals that this large group of retiring boomers will be looking for something that will be comfortable, not extravagant. This isn’t to say that the resort retirement lifestyle is dead but the baby Boomer generation in general will be looking for something more practical and financially sound. If you’re in the 55+ market I suggest you take a look at this MetLife study. This is only a quick overview of its contents and I think reading the study in full would be very beneficial.
Putting The Digital Marketing Pieces Together
Posted by Sibet B Freides in Marketing, Real Estate Sales on May 4th, 2010
Builderonline.com has a great article titled “10 Ways For Builders to Improve Their Online Marketing Efforts”. I suggest you check it out. It has a great list and serves as a good example of how to put it all together.
I found this article particularly refreshing for a couple of reasons. I am glad that Alison Rice, the article’s author, addressed the doubts regarding digital marketing and in particular social media. She didn’t present it as the industry savior like some and she didn’t throw it under the bus. She explains its benefits but also warns not to totally depend on it.
Making your company’s website the best it can be is solid advice. It sounds simplistic and you might be thinking that this is common practice but it’s not. With the rise of social media some companies are thinking that the attention to their websites can decrease because all web activity is the same. This isn’t true. Your website is “home base”. Social media efforts should be leading consumers to your site where in part can be completely about you and what you have to sell.
If this same approach is taken in social media, the results will be anything but favorable. Like the article says, social media “isn’t just about selling your product; it’s about being relevant”. You have to give before you get. If you do this, consumers will trust you and understand your worth. Then you can present them with what you are selling. This could be a link to your website, a visit, or a conversation.
This article also talks about pay per click ads, Google, SEO, and message adaptation. It really puts the digital marketing pieces together well. It’s a good refresher for those of you who have been in the business for a while and some good advice for new comers.
The MLS Is Going Green
Posted by Sibet B Freides in Green, Real Estate Sales, Real Estate Trends on May 3rd, 2010
As the demands for sustainable architecture and interiors continue to grow, the real estate industry is responding quickly to suit consumer demands and interest.
With the ever-growing demand for “green” homes, Realtors must learn to speak a new lingo in real estate marketing. Fortunately for them, a useful and familiar tool is starting to embrace the current market demands.
Several Multiple Listing Services have begun utilizing the new Green MLS Tool Kit. This kit will give realty brokers and salespeople a way to include the green and sustainable initiatives that consumer are seeking. The National Association of Realtors introduced the kit earlier this month and there is no timeline for its implementation since each MLS operates on a local level. A schedule will be decided on by local affiliates.
The tool kit will include a current report on the green home industry and an outline explaining the importance of a green MLS initiative. This will include strategies for effective change. It will also include case studies on how other MLSs completed their green transformation. I think this will be the most useful aspect to this new tool kit because it will paint a picture of what needs to be done to help Realtors help consumers.
The idea behind all of this is that the sustainable information on MLS will trickle down to the consumer. As you all know, consumers don’t see MLS listings, only Realtors. It’s very important that Realtors begin listing properties with sustainable features immediately. This isn’t really a market trend. It’s a transition and in my opinion, this was the obvious next step. I am glad that it’s happening and I expect to see more changes of this nature in the future.
