Posts Tagged ‘demographics’
5 Surprising Demographic Trends for 2012
Posted by Sibet B Freides in Real Estate Trends on January 25th, 2012
The National Association of Realtors’ latest Profile of Home Buyers and Sellers has some unexpected statistics about who is buying and selling in today’s market. Now that the first-time homebuyer tax credits have ended, baby boomers have replaced Gen Y and Gen X as the dominant players in the real estate market.
This year’s profile revealed these surprising statistics:
1. Bottomed out at last. Prices appear to be stabilizing in some areas. This is the first step in climbing out of the rocky bottom we have been in for the last several years.
2. Boomers are the key players. In 2010, due to the first-time homebuyer tax credit, the median age of first-time buyers dropped to 31. In many markets, the number of first-time buyers hovered at the 50 percent level. The smart move in 2011 was to market to Generation Y.
Over the last 12 months, however, there has been a substantial change that can have important ramifications for your business in 2012. In 2011, baby boomer purchases substantially surpassed the number of Generation Y buyer.
Why is this surprising? There are more Gen Yers than there are boomers. Generation Y is also at its peak buying age – marrying, establishing new households, and having children.
Furthermore, boomers are actively driving the second-home market. As a result, it may be smart to revisit your business plan for 2012 and to place more emphasis on working with boomers who are currently the dominant players in terms of purchasing.
3. More buyers are using agents. 89 percent of buyers purchased their home through a real estate agent or broker – that’s up from 69 percent in 2001. What are some ossible reasons?
Realtors shorten the search process when there are huge amounts of inventory on the market and people are pressed for time. Most likely, though, it’s the difficulty of the loan process both on the buyer’s side in terms of qualifying for a loan, and on the seller’s side based upon the appraisal process that marks the need for realtors.
4. Married couples or single female buyers? The trend since 2001 has been a substantial decline in the share of buyers who were married. From 2001-2008, the number of married couples purchasing homes dropped from 68 percent to 58 percent.
A historically high percentage of Gen Xers are actually unmarried. As a result, the market saw a huge proportion of single female buyers – the smart market niche for 2011.
In 2012, it’s an entirely different story. The number of single female buyers is still relatively high at 18 percent, but that’s the lowest number since 2004 and represents a reversal of a major trend. It’s time to focus on marketing that reaches couples and families in 2012.
5. Life changes drive real estate sales. The primary reason to purchase a home among repeat buyers is often because of life changes: the desire for a larger home, a job relocation or move, desire to be closer to family and friends, or a change in a family situation.
How will you focus on these 5 new developments for 2012 to reach more sales?
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.
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.
Boomers: Is the Housing Market’s Cavalry Here?
Posted by Sibet B Freides in Demographics, Real Estate Economics, Real Estate Trends on September 22nd, 2011
Being able to easily meet today’s required 20 percent down payment, boomers should be ready and able to bail this generation out of the housing muddle. So why is this not happening?
Unfortunately, the boomers are too busy taking care of the Gen-Xers that CAN’T qualify for a mortgage in today’s restrictive market.
I still think there’s hope for the market to be recovered by this steadfast generation. For one, they did not purchase their first home during the recent housing boom, so this means they will have a larger home equity cushion and the ability to secure a reverse mortgage.
They are also looking for a different lifestyle and product and are ready to buy. According to the NAHB, specifically appealing to boomers are single-story homes and with all living space on one level.
The 55+ demographic actually account for almost a quarter of all new custom-home purchases, so builders should be catering to this group of middle agers. Unfortunately, homebuilders are contending with a huge overhang of existing homes on the market, and having a harder time getting banks to sign off on construction loans.
Do you think the boomer generation will lead the housing revival? We’ve already seen signs, do you think it’s just a matter of when? Let us know by commenting below or posting on our Facebook page!
8 Things You Must Know About Your Perfect Client
Posted by Sibet B Freides in Demographics, Marketing, Social Media on September 7th, 2011
Do you want to really reach your audience with your marketing message? It doesn’t matter if you are using
traditional print or new media campaigns, if you don’t know who your buyer is you won’t get anywhere. Make sure these questions have CLEAR and SPECIFIC answer:
Who is my ideal client?
What is their demographic profile? (age, location, income, etc.)
What do my perfect clients believe?
What do they like?
What are they worried about?
What is their biggest pain or source of discomfort right now?
What do they want from me online?
What amazing benefit will I give my client to make it worth their time to care about me and my product or service?
It is still tempting to focus on what you want from your customers, much like you did when the market demanded experience, awards, and accreditation. Today you’re setting yourself up for failure if you focus on yourself first.
You do something that people need or your business goes away.
Do you need help defining your perfect client and answering these questions for your business? We can help!
Gen Xers are Online the Most
Posted by Sibet B Freides in Demographics, Marketing, Real Estate Trends on September 1st, 2011
It’s not the Millennials that are the most savvy in the digital world. Generation X—the first generation to grow up with PCs—are the ones plugged in the most. These 34- to 45-year-old consumers are heavy users of digital tools, but they also watch more TV than any other age segment.
A new eMarketer report, “Gen X: Demographic Profile and Marketing Approaches” indicates that this group is as comfortable with digital as with traditional media. “To effectively engage with Gen X, brands need a strategy that incorporates multiple channels—including mobile, social and online video—with authentic, relevant messaging,” the report notes.
Since this demographic actively loves TV along with their digital conveniences, video marketing is a smart choice to reach them.
eMarketer forecasts that 74.2.% of Gen X internet users will watch online video at least monthly in 2011, and that percentage is expected to grow to 80% by 2015.
It’s their shopping habits that speak the loudest of this generation. They are more likely than the general population to visit online retail stores mobile retail sites.
Some common characteristics of Gen X
Generation X came of age in an era of two-income families and rising divorce rates. Women joined the workforce in large numbers, spawning an age of “latch-key” children. As a result, Generation X is independent, resourceful and self-sufficient.
The first generation to grow up with computers, Gen Xers are comfortable using smartphones, e-mail, laptops, GPS, iPads, and more.
Many Gen Xers lived through tough economic times in the 1980s and saw their workaholic parents lose hard-earned positions. Because of this, they are less committed to one employer and more willing to change jobs to get ahead than previous generations. They adapt well to change and are tolerant of alternative lifestyles.
Tell us how you market to this audience – do you employ different strategies or use the same message and discipline for all your potential clients?
Who’s Using Social Media?
Posted by Sibet B Freides in Demographics, Social Media on August 16th, 2011
In 2011, over 63% of Internet users in the United States will use social networks on a 
regular basis, amounting to nearly 148 million people. Marketers and media companies alike now know that Social media is here to stay, and in order to reach their audience they must have a presence on social networks.
Who are they?
Seniors
The 2010 US Census counted 40 million seniors in the US. Traditional media continues to be the preferred way to receive message among seniors, but the Internet is quickly infiltrating their world. Social media usage among seniors is projected to be around 56% by 2015.
Moms Who Blog
Blogger moms have become important marketing partners and powerful allies. They spread the word about products and services to millions of other moms who go online looking for advice and recommendations. In total, there are 3.9 million women with children under 18 who write blogs, covering a wide variety of subjects, including parenting, couponing, travel, special needs and organic living.
Millennials
Millennials are the first generation to be raised with online media. These digital natives quickly adopt new technologies and adapt them to fit their lifestyles. Millennials value experiences and engagement with brands, and will be evangelists for those who do engage within their social circles.
Do you know how to reach these groups effectively and how to customize your message for them? If you’re struggling with your social networking reach, let Idea Associates help you!
What is Behavioral Targeting?
Posted by Sibet B Freides in Marketing, Social Media on July 26th, 2011
The Internet is getting more and more like “Big Brother”… Google guesses what you’re thinking, Facebook serves ads that seem to always correspond with your interests… but what exactly is behavioral targeting and how is it used to advertise?
Targeting companies are hired to place a piece of code on a website. Then, when a user is surfing the web, the site will put a cookie on your browser, which populates as you surf.
Now that your browser has a cookie, the targeting begins. A profile is formed as you click your way from site to site. This cookie takes note of what you buy, what you read and what you search for. The more time goes on, the more data is collected, gauging your interests and preferences.
With systems tracking your moves, keeping tabs on your browsing history, the Internet can get to know you better — and be smarter than ever. This is marketing gold, as more relevant content can lead to more engagement.
Consumers are starting to expect that their Internet experience be all about them.
Meanwhile behavioral targeters are testing demographics and creating algorithms to determine consumer interests and speak to a person’s depth to give them an element of choice. Companies like ContextWeb target based on content. Instead of interpreting CNN as a news site, it breaks it down into retirement, personal finance, education — it’s no longer a one-dimensional perception of the site. And that precision helps to refine the algorithm.
To some, behavioral targeting seems like an invasion of privacy, but this seems to be less of a priority among millennials, who tend to be more accepting of behavioral targeting than their Boomer counterparts. They’re used to living their lives out loud. Behavioral targeters can take advantage of the wealth of consumer information broadcast over social media, learning tweet by tweet about the audience it’s trying to reach.
Where is it inaccurate? What if a family of four shares a desktop computer? How does the targeter know the difference between the family members and their widely varied interests? Well, BT isn’t perfect. It relies on laptops, and soon iPhones, Androids, and iPads for the crux of its data. Give it time – soon we won’t even have to type search criteria into Google!
What do you think? Is behavioral targeting an invasion of privacy? Is it creepy, or smart marketing? What has your personal experience been, as a consumer or marketing company? Share your thoughts by commenting below, or posting on our Facebook page!
Does Direct Mail Still Work?
Posted by Sibet B Freides in Demographics, Marketing on July 19th, 2011
I’m not talking about eBlasts or opt-in newsletters. I mean something in an envelope that actually arrives in your physical mailbox.
Print is dead. Direct mail is dead. Outdoor is dead.
Or are they?
If you are still estimating your ideal client’s demographics using old-school thought processes, then buying a generic list most likely won’t work. Why? Because you really don’t know the customer or anything about them.
How does direct mail still work in a digital age?
Know your audience. Match your direct mail piece to their current lifestyle, possessions and desires or needs. Once you’ve captured your audience, really stir up their emotions. You can employ old-school marketing to the new age of really knowing your buyer and what motivates them.
What medium are you using to get to know your clients or customers? Social Media? Focus groups? Do you hire consultants to profile your audience? Let us know by commenting on the blog below, or posting on our Facebook page!
Will Boomers Reshape the Housing Market Once Again?
Posted by Sibet B Freides in Demographics, Real Estate Trends on May 26th, 2011
Baby Boomers used to be one of the largest targeted demographic groups in the housing industry. As their retirement funds diminished over the past few years, many were forced to work longer before considering a retirement home or community, which put them in a limbo of sorts with the future of the market.
There is a predicted Boomer comeback among builders, only this time the market and their needs will reflect a simpler product line. Land planners now have an opportunity to rethink community and home designs that were originally intended for that age group.
Retiring Boomers are still privy to developments restricted to older buyers, but they are seeking a greater variety of home styles than were offered during the housing boom.
The recession has resulted in less money to spend and brought about requests for less space than previously desired. Successful developments are actually scaling back home sizes by 200 to 400 feet.
With the possibility of younger Boomers continuing to work at least part time post-retirement developers should consider creating space for home offices in their floorplans.
Among the most popular amenities desired, walking trails and fitness centers are still number one on the list. Gated access and the feeling of security also play into the overall picture.
What other features do you think today’s Boomers are looking for? Do you think the 77+ million Boomers are a strong voice in market demands?
