Posts Tagged ‘Gen x’
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?
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!
Rentals on the Rise
Posted by Sibet B Freides in Real Estate Economics, Real Estate Trends on October 11th, 2011
Home sales may still be struggling, but the rental industry is booming. Aside from the housing market woes, more and more Americans are downsizing. It’s no surprise that rentals are on the rise.
Gen Y is not as interested in garden-style apartments. So will high rises gain popularity? Or will they be looking for a new product not yet designed?
We know they will expect wi-fi, iPod docking stations and apartments that truly reflect who they are.
The high foreclosure rate is not the only factor in the accelerated transition toward leasing. Today’s housing demand has actually shifted toward smaller dwellings; with Boomers downsizing to urban centers offering more amenities and the Millennials just hitting their single, urban life stage. Generation X is one of the smaller demographic groups right now, translating to a much weaker demand for traditional neighborhoods with single-family homes.
As the economy is now starting to lift, those who took on roommates or moved back with their parents are just starting to emerge into the real world again. Often the majority of these groups start with a lease.
Apartment developers are already responding to the growing demand for rental housing, but with so many construction firms out of business or in slow recovery there may soon be a rental shortage in many metropolitan areas.
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!
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?
Chronology of the Generations
Posted by Sibet B Freides in Demographics on May 19th, 2011
There have been many conflicting attempts to classify the generations of the western world. The chronology through the early part of the Baby Boomer generation has been widely accepted; however it is harder to define the newer generations. Do we attach them to population dynamics or sociological theories?
The following is a list of generations as we know them:
The G.I. Generation includes the veterans who fought in World War II. They were born from around 1901 to 1924, coming of age during the Great Depression.
The Silent Generation was born from 1925 to 1945 and includes those who were too young to join the service during World War II. Many had fathers who served in World War I.
The Baby Boom Generation is the generation from about 1946 to approximately 1964, a time that was marked by an increase in birth rates. The Boomers are a demographic that changed society. Many grew up in a time of affluence. One of the features of Boomers was that they tended to think of themselves as a special generation, very different from those that had come before them. In the 1960s,
as the relatively large numbers of young people became teenagers and young adults, they definitely brought about succinct change in society.
Generation X is the generation defined as those born after the baby boom ended, born in the 1960s and 70s. The term is also popularly used to describe counterculture in general.
Generation Y is also known as the Millennials, Generation Next, Net Generation, or Echo Boomers. This term typically describes the group born at the start year of 1982, and end years around the turn of the millennium. While getting a bad rap and being dubbed as “The Entitlement” children, Gen Y is really an astounding bunch.
Generation Z, also known as Generation I or the Internet Generation. They were recently dubbed Generation @ in the “Digital Natives” by Marc Prensky. This is the newest and current group of digital wonders were born no earlier than the 1990s and are truly changing are structures and systems as we know them.
What do you think? Which generation will most likely pull us out of our current economic situation? Where are we headed as a society – are things breaking down to allow better conditions to be built, or simply breaking down? We’d love to hear your thoughts in our comments section below, or on our Facebook page!
Boomers as Tech-Savvy as Millennials? For Realz?
Posted by Sibet B Freides in Demographics on April 20th, 2011
Boomers may not be the first group to run out and buy the latest Netbook or iPad, they ARE as likely as our young Millennials to own computers, access the Web on a daily basis, and own gadgets like the latest mobile phones.
According to Ad Age, 46- to 64-year-olds spend an average of $650 on online shopping over a three month period, versus $581 for Gen X and $429 for Gen Y. Even more interesting: 50- to 64-year-olds had an 88 percent increase in social media usage from April 2009 to May 2010. Think your mother-in-law doesn’t tweet? Ha! Think again!
The latest research shows that Boomers and Millennials actually have a lot in common, as they both grew up during prosperous and robust economic times.
The stats are overwhelming:
Email usage 91% Boomers 94% Millennials
Search Engines 88% Boomers 89% Millennials
Use online ratings 30% Boomers 31% Millennials
Get news 74% Boomers 83% Millennials
What are your thoughts? Do you see the tie between Boomers and Millennials? Does it change the way 
you’re marketing your product or service?
Five Ways to Ease Prospects’ Uncertainty
Posted by Sibet B Freides in Marketing, Real Estate Economics, Real Estate Sales, Real Estate Trends on March 28th, 2011
According to the NAHB, newly built, single-family home sales hit a record low in February, declining by 16.9 percent to be exact.
These numbers reflect the continued uncertainty of consumers in the overall economy, not just that housing recovery is hesitating. While the economy is the primary concern of most Americans right now, even qualified buyers are struggling with the challenges of new lending terms and conditions and low appraisal values on new construction.
Here are five ways you can ease prospect uncertainty about buying in this market:
Remind them that interest rates are going up. Because of the low cost of homes right now, there will not be a better time to buy. While they wait to decide, 1/8 of a percent continues to be added to the overall, long-term payment.
Show the comparison of renting versus owning: owning still has a tax advantage as well as all the benefits of making it their own, such as choosing the colors they like and renovating to personal taste.
Change your message. In the past 10 to 15 years we have made buying a home about an investment. Now it goes back to being about a home not a commodity. Interestingly that coincides with the Gen X and Y buyers who don’t care about investment as much as they care about it being “theirs” – about them and their taste.
Engage in conversation with your prospects, over social media and in person. Hear their concerns and address them accordingly. Today’s buyers want personal attention, not necessarily always solutions. They want to be heard.
Use Social Media and give away helpful information, whether they buy from you or not. Social Media marketing allows a forum where you can be the expert go-to person for all your buyers’ questions, worries, and needs.
At Idea Associates, we don’t just put your advertising message out there. We are partners and consultants to our clients reach their goals from start to finish. Let us help you ease YOUR prospects’ minds about buying from you today.
