Archive for the ‘Demographics’ Category
Retirement Age Goes Up by Seven Years
Posted by Sibet B Freides in Demographics on May 15th, 2012
The recent Gallup’s annual Economy and Personal Finance survey conducted revealed that the average nonretired American now expects to retire at age 67, up from age 63 a decade ago and age 60 in the mid-1990s.
Today’s younger nonretirees are more optimistic about being able to retire at age 65, compared with an expected retirement age of 68 for those aged 40 and older, a statistically significant difference.
What About Being Comfortable?
Unfortunately, the poll also found a new low of 38% of nonretirees saying they will have enough money to live comfortably in retirement. It seems the number has been below 50 percent since 2002.
Naturally, this decline in expected financial comfort in retirement directly equates to the decline in the percentage of all Americans who are able to live comfortably in current times.
What Does This Mean?
Expectations for retirement have changed in recent years, due to the economic issues like housing bust and stock market volatility; however there are also serious questions about Social Security and Medicare’s ability to sustain retirees in the future.
As the economy begins to strongly move in a more positive direction, Americans are regaining some optimism about their retirement.
What do you think? Has retirement changed permanently, or are we experiencing another cycle that seems to mirror the economy? We’d love to hear your comments below or on our Facebook page!
Millennials: Lazy and Entitled?
Posted by Sibet B Freides in Demographics on May 1st, 2012
New studies by The Boston Consulting Group, Barkley, and Service Management Group show Millennials in stark contrast to their reputation as the lazy and entitled generation. In fact, they are actually engaged in consumer influence with distinctive buying habits.
According to Christine Barton, a partner at BCG, a leading management consulting firm, we shouldn’t believe the hype that Millennials consume less than previous generations. She states, “On average, U.S. Millennials already shell out and influence the spending of hundreds of billions of dollars annually—an amount that will only increase as they mature into their peak earning and spending years. Those companies that truly ‘get’ this generation will have an opportunity to differentiate themselves and forge profitable long-term relationships with Millennial consumers.”
Millennials are more engaged in rating products and services. On the flip side of this, they rely more on recommendations from peers or friends than those of traditional “experts”. I think they even prefer input from strangers and social sites to input from a company.
In fact, the definition of expert has changed from one with professional and academic credentials to peers with personal and firsthand experience. This is evident in many of the Internet coaching businesses coming forth today.
It’s no surprise that Millennials consider themselves “digital natives”, using technology and social media as a natural and necessary part of their life and work.
Here’s an interesting find: when it comes to making purchases, Millennials are far more likely to favor brands that have Facebook pages and mobile websites.
According to executive vice president Jeff Fromm at Barkley, “This is a generation that engages with brands, channels, and service models in new ways—ways that have been instrumental in creating our current ‘participation economy.” He further says that they are always in a hurry, so it’s critical to get them to spend the time to develop a relationship with your brand.
How do you understand and reach this highly influential generation? Share your thoughts with us by commenting below or posting to our Facebook page.
How To Attract Young Renters
Posted by Sibet B Freides in Demographics, Real Estate Trends on April 18th, 2012
Millennials… the coveted demographic. Wikipedia says characteristics of the generation vary by region, depending on social and economic conditions. However, it is generally marked by an increased use and familiarity with communications, media, and digital technologies.
It is believed that they will save the housing market, be it buying or renting. Builders are looking to attract them, so here are a few ways to reel them in.
Sleek and Sophisticated Design
Clean, modern lines and open, resort-like spaces are a way to catch the eye of Gen Y. Large community rooms and shared amenities are appealing. This generation is looking to be calm yet inspired.
Reach Them Where They Hang Out
Social Media is a must, not just to attract new residents but to also retain current ones. It helps them feel like part of a community that they can connect with us just like they would with their friends and relatives. Just like the general Social Media philosophy, they are not posting ads and specials, rather updates on community events like restaurant openings and shows, with a sprinkling of new promotions.
Live-Work-Play Still Applies
The way a building is designed establishes its position in a community. The most important aspects are proximity to transit or walking to work, street-level retail and special deals for residents at local businesses.
Eco-Friendly
Although young renters may not be willing to pay extra rent for green features, they expect them as standard. It’s a new value system. Things like providing recycle bins and efficient appliances will go a long way in building for the Millennial Generation.
Small Houses, Living Large
Posted by Sibet B Freides in Demographics, Real Estate Trends on March 21st, 2012
Downsizing has been a trend over the last several years, whether you are an empty nester eliminating yard work or a family adversely affected by past economic conditions. Builders are making this trend work for them with new designs and plans. Today buyers aren’t looking for more house, they are looking for houses that do more. They will accept smaller space but not less finishes; they still expect a home that impresses.
Making smaller plans work means both using every space in the home and customizing the allocation of space so that the owners’ priorities are reflected in where square footage is allotted. Even if customization isn’t possible, builders can focus on adaptable spaces.
Flexibility seems to be on the top of the buyer priority list, such as a dining room that can be converted into an office or extra bedroom if needed.
Some examples of modern adaptations of space can include built-in storage for backpacks and bags at the side entrance commonly used by the family, hallways with extra cabinets, and the elimination of the formal dining room. An alcove near the stairs is perfect for mini home office needs.
Living smaller not only emphasizes the less is more principle, but it also encourages the implementation of green features and appliances, which make a real selling point.
Will the Echo Boomers Save the Housing Market?
Posted by Sibet B Freides in Demographics on March 15th, 2012
The housing market has a huge impact on the health of the economy. With the seemingly upturn of the market, the catalyst will most likely be demographics.
Generation X (thirty-somethings) is small relative to the one that came before it — the baby boomers — and the one that came after it — the echo boomers. Their impact on the market has really already been made.
It is the echo boomers that should have property developers excited. These children of the baby boomers, born in the 1980s and 1990s, make up a generation even larger than that of their parents. And they are quickly entering their peak marriage and family years.
The settling down of the largest generation to date will create unprecedented demand for starter homes and rentals. Hard to imagine, could this meant that in a few short years we may actually have a housing shortage?
This seems to be turning into a very exciting time in real estate! What’s your opinion? Share your thoughts on echo boomers by commenting below or posting on our Facebook page.
How Are Builders Catering to the Single Woman Buyer?
Posted by Sibet B Freides in Demographics on December 15th, 2011
Single women continue to be a major force in the real estate market, according to MSNBC and the National Association of Realtors. The demographic accounted for 20 percent of all homebuyers in the past year, whereas single men only made up 12 percent of the total.
Realtors and builders are taking notice of this trend. In new home construction, builders are putting in extras such as security features, gourmet kitchens and yards with little to no maintenance required.
What else is important to this demographic?
Safety. Industry experts also say a building’s proximity to public transit and parking factor into this equation. Late working professional women would take notice of a parking garage and controlled building entrance.
Socializing opportunities and luxury touches. Events, areas for entertaining, spa, massage room and fitness centers with all the bells and whistles are a huge draw for the savvy woman buyer.
Respect. There’s unfortunately still a perception that single women are gullible—that they can be suckered by a wily contractor. In today’s market, that’s an unfair characterization: they’re smart. They’ve done their research. They probably know more about a building’s floorplans than the salesperson.
When women buy for themselves, they are excited about turning the home into something that reflects them and who they are—this is a continuing trend that should not be ignored by builders and developers.
Baby Boomers Finally Contributing to Online Sales
Posted by Sibet B Freides in Demographics on November 17th, 2011
Baby Boomers have finally become more comfortable with technology; they have now started spending a great deal of money online. According to Mediapost, more than 70% of consumers ages 45 to 55 made an online purchase in the past three months.
Consumers ages 56 to 66 spend the most online among all the generations – more than double the amount of what is spent by those ages 18 to 22.
The average online consumer owns two connected devices. Not surprisingly, the ability to go mobile will fuel the trend, as 78% of those adults going online daily.
Nearly all online U.S. adults own a mobile phone, more than one-third own a smartphone, and close to half log on to the Internet through it at least monthly. 67% of these consumers are considered the most sophisticated by a Forrester study because they rely on their phones for email, games, and checking news, sports and weather. They also use their phone to send text messages and watch videos.
The study also suggests that consuming other media has become popular online. 74% of consumers watch TV online at least once weekly.
It is yet to be measured how Boomers are responding to online ads and where they are most reachable. What do you think from your experience? Are Boomers clicking online banner ads, pay-per-click, review sites? What do you think is the best way to reach them online? Share by commenting below or posting on our Facebook page!
What Luxury Agents Do for That Sale
Posted by Sibet B Freides in Demographics, Real Estate Economics, Real Estate Sales, Real Estate Trends on November 8th, 2011
According to the LA Times, real estate agents listing an $8-million home in Santa Monica wanted to ensure a good crowd for an open house last month, so they hired a stilt walker, shirtless male jugglers and a contortionist who floated in the pool, encased in a clear plastic bubble.
Nearby, an agent stationed models in front of a new condominium project. Wearing velour robes and flip-flops, the young men and women served free drinks to promote the cocktail hour lifestyle at the development.
Still another went all the way to Spain to drum up business.
When marketing a multimillion-dollar mansion, a plate of cookies and free coffee simply won’t do in today’s new market. Agents have been outdoing themselves to help get through this market.
Aerial Showgirls, Thai foot massages, and Botox treatments… is all this really necessary? Although agents are putting up thousands of dollars for these remarkable parties, they are definitely seeing up to three times the traffic than they would with a simple display ad or a listing on MLS and some generic signage.
Agents are treating buyers seeking homes in the $2-million and more range like royalty, including facilitating their home tour starting with a red carpet.
Sometimes, it can be as simple as putting a new spin on an old standby, such as staging.
A recent agent recruited a well-known interior designer to outfit the home with vintage and contemporary furniture and art, which was then offered for sale at the open house.
He told the LA times that the cost was less than hiring a traditional staging company, the event drew about 200 people and the property received multiple offers, selling at nearly full price within a week of coming on the market.
To get foot traffic, a condo agent put a new “spin” on a sign-spinner by hiring models to hand out fruit drinks on the sidewalk… and beer, wine and mimosas to adults that came in to see the model units. The agent spent about $5,000 but sold four units on the weekend following Thanksgiving.
What’s the bottom line? You may be afraid to spend the money and think outside the box, but this is the time to go above and beyond and really draw attention to your properties. While we don’t think you should pull out all the stops and hire a circus, there are some worthwhile ideas in the shock and awe mindset that might just get you results.
How Do You Get More Social Mentions?
Posted by Sibet B Freides in Demographics, Social Media on September 28th, 2011
When you write a great blog post, are you disappointed to see only a few comments? Do you get only a handful of retweets when you put it on Twitter? Are people on Facebook even acknowledging your post?
An interesting statistic:
Web site pages displaying the Twitter share button get seven times the social media mentions compared with those that do not, according to a study released by The BrightEdge SocialShare Analysis report.
This company randomly selected 4 million tweets, determining if they carried shared information and then analyzing whether the content was shared using tools, buttons, links or other methods. It was quickly identified that buttons drive mentions through social media.
Twitter’s not the only proof: Facebook, LinkedIn and Google+ also gained increases in mentions. However, the social share space is still dominated by the two biggest players. About 50.3% of the world’s largest sites have a “Like” button that links to their Facebook pages.
Google+ only sits on about 8.1%, and LinkedIn remains unchanged at 4.0% according to BrightEdge.
In general, the social share buttons work because they make it very easy for people to share your content in one click. That’s important in today’s instant gratification digital world. This statistic doesn’t necessarily span across all generations, however; although 32% of boomers said they use a social networking site on a typical day, they are still reluctant to click on the Facebook “Like” or Twitter share buttons, especially women aged 50 and up.
What about you? Do you share a great blog post using social share buttons? Has your social mention score risen since you put them on your own website?
Affluents Right at Home in the Digital World
Posted by Sibet B Freides in Demographics, Marketing on September 27th, 2011
In a recent survey about lifestyles and attitudes, 79% of affluents shared that in the last decade their lives have become quite intertwined with technology, including digital advertising. Almost 60% said they took action as a result of seeing a digital ad, including clicking, searching for more information, buying the product online, or going to a retail store to purchase.
Agencies have traditionally felt this group was the hardest to reach through any media, especially TV and radio. However, they are actually the heaviest users of digital media, spending at least six hours more a week than the general population.
What does this mean?
The paradigm has shifted; you can expect affluents to respond to digital advertising and even share information about them so they can have a more personal online experience.
They still seek clever and attractive ads that entertain, but affluents look for balance and relevancy, as long as it is on their terms and they are not repeatedly interrupted with ads that demand immediate action.
