Posts Tagged ‘Gen Y’
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!
Will the Rental Market Prevail?
Posted by Sibet B Freides in Real Estate Trends on April 21st, 2011
A wise client of mine has said many times: the government had one good finance program. Congressional wisdom said, if we have one program working well, why not three? Right! So was born Fannie and Freddie.
Although the expansion has made home ownership easier and a profit for investment institutions, insurance companies, and developers/builders, it wasn’t 100% positive for America – thus the foreclosure rate and an economy that almost imploded a year ago. But we rode the tide; and it was great for a lot of people, including Idea Associates.
Regardless of the current state, I think that renting will be popular for many years due to these and other circumstances:
- It will be harder to get financing if you have any kind of credit issues.
- Reduced options available for lending.
- Social change – Generation Y doesn’t want to own as “early” as other generations and will delay home buying.
- Baby boomers now tend to rent in the south and keep their home in the north to experience seasonal comfort.
- Society as a whole has changed – people are mobile and want to be able to move for jobs and other reasons.
- The real estate market is snapping up apartment buildings everywhere, giving investors the impression that this is a hot market. Does that mean we’ll soon see all those condo conversions convert back?
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.
What Does Generation Y Want in Their Next Home?
Posted by Sibet B Freides in Demographics on March 11th, 2011
So what’s one of the top desires Generation Y homebuyers have for their next home? You can probably guess it, walkability.
This truth was recently reinforced at a NAHB conference in Orlando. Not only does Generation Y want to be able to walk to restaurants and retail locations, but they also would like to walk to work if at all possible.
What else do they want? Pretty much the opposite of the once Baby Boomer desired McMansion in the suburbs. This includes smaller rooms, tighter floor plans, no bathtubs, and smaller green spaces.
One thing that researchers are finding is that Gen Y wants an amenity-rich living experience. This includes pools, fitness centers, and party rooms for social gatherings. Such amenities are often found in urban apartment buildings, which may explain the recent burst in that market.
An interesting aspect to all of this is that some Boomers are starting to adopt the mindsets of Generation Y. Downgrading is becoming a popular theme in real estate right now. Maybe it’s because people cannot afford what they once could. It might also be that the recession has changed the way Americans view home ownership.
Where are you in that spectrum? What do you or your clients value in a home – a large, spacious suburban setting or a building showered with amenities and the convenience of Intown living? Why? Share your thoughts below, or tell us on Facebook or Twitter!
