What can real estate agents and brokers do to put themselves in the best possible position to capture the millennial market? There is a huge opportunity being the largest age group in America.
In 2016, millennials surpassed the baby boomer generation as the largest age group in America. This generation of consumers comes into a fresh housing market, with new housing popping up left and right and interest rates still low. Yet even with these bullish market factors, millennials are not buying homes at the rate of their predecessors. Selling to millennials is certainly different than other demographic groups, but agents can strike gold in this untapped market for years to come.
Selling to Millennials: The Facts
According to Fannie Mae, over two thirds of millennials plan to own a house in upcoming decades, but the same number also state that financial reasons are hampering their buying power today. Insufficient credit, high down payments, and too much debt are the biggest obstacles that are limiting millennials.
Over 50% of millennials with incomes in the median range (up to 60,000) have stated that they intend on buying houses instead of renting in the next five years. Small single-family homes or condos in bustling downtown areas are what young people are looking for. Huge two story houses over 300k in the suburbs may yield high commissions, but will alienate your buyer.
Understand their mindset
Understanding budgets and the mindset of millennial buyers will greatly assist agents. Agents should also treat this consumer base the same as they would any other client of theirs. Just because millennials have a lower income base should not allow for bias to consume the agent. This generational base is now the largest in America, and by selling to millennials, agents create a lifetime of sales.
If you understand their needs and the challenges they face in the housing market, you will go a long way in selling the perfect home to any millennial.