Make Your Pitch to Millennial and Gen Z Homebuyers
Millennials and Gen Z are entering the housing market in greater numbers, and it’s a big opportunity for title agents, particularly given the static housing market. It’s no secret that real estate sales were down in 2023, and that trend has continued throughout the first part of 2024. Capturing the pent-up demand of younger buyers is one way to overcome market challenges and boost profitability. But success hinges on shifting your mindset and adopting the right tools and strategies. Here’s how to do it across a few key marketing channels.
The long road to homeownership for Millennials and Gen Z
For many Millennials, it has been a difficult road to homeownership, and not because of eating too much avocado toast.[i] The 2007 financial crisis and subsequent Great Recession is one reason why Millennial homeownership has often lagged their generational predecessors. The picture has changed, however, in recent years. Nearly 40% of new home buyers are now Millennials. The generation also makes up the highest percentage of first-time buyers, increasing their proportion from 70% to 75% over the past year.[ii] Not to be outdone is Gen Z. Data shows that 30% of 25-year-olds are homeowners – 3% higher than their Gen X parents when they were the same age.[iii] While Gen Z currently only makes up 4% of national homebuyers, major subsections such as single women are trending higher than other generations.[iv]
Social media
Let’s begin exploring how to reach these folks by looking first at social media. Why? Well, because it is perhaps the single most important channel for marketing to younger buyers. More than 1 in 4 Millennials use social media to find products and services, and nearly half use different social platforms to conduct research.[v] Blogs circulated via social are even more popular, with 1 in 3 relying on blogs to inform purchasing decisions.[vi] By developing your social presence and incorporating best practices like short-form video, you can amplify your impact and grow your brand.
Mobile friendliness
These days, having a mobile-friendly online presence is a must, especially if you are trying to reach Millennials and Gen Z. Research shows that over 96% of internet users ages 16-64 own a smartphone[vii] and nearly 62% of all website traffic comes from mobile.[viii] Stats like these don’t even speak to the popularity of apps geared toward mobile users. Data shows Gen Z currently spends between 24-48 hours per month on TikTok – which amounts to approximately 24 full days every year![ix]
What does this mean for title agencies? Just put yourself in the mindset of a consumer! Let’s say title agency #1 has a website that looks great on your mobile device while title agency #2 website does not. Which one would you think is going to take care of your closing needs more effectively? I suspect you already know the answer.
Online reviews
One characteristic of younger generations is that they grew up using review sites like Yelp, Google, Foursquare, etc. This trend has continued to the present day. For example, 86% of Gen Z reads reviews ahead of making a first-time purchase.[x] Data like this means your agency must establish a presence on review sites and stay active by responding to user comments and complaints. The benefits of doing so are two-fold. You will become more visible to younger users. And you will showcase that you are a responsive, reliable company committed to their satisfaction.
Partnerships
Even in a digital-first economy like ours, good old word-of-mouth marketing still can’t be beaten. One of the best ways to build positive buzz for your brand is by developing relationships with the real estate agents who guide customers through the home-buying process.
Final thoughts
As anyone involved in real estate knows, this industry is always changing. The rise of Millennial and Gen Z home buyers is just one recent development. By getting digitally savvy, meeting these younger buyers where they are, and making an honest effort to create positive word-of-mouth, you can capture their business and grow your own profitability.
[i] ‘Don’t buy $19 smashed avocado’: Melbourne property tycoon hammers Millennials over spending habits (9news.com.au)
[ii] Millennials Reclaim Position as Largest Group of Home Buyers (nar.realtor)
[iii] The Race to Homeownership: Gen Z Tracking Ahead of Their Parents’ Generation, Millennials Tracking Behind (redfin.com)
[iv] Ibid
[v] Here’s Why Millennials Use Social Media – Marketing Charts
[vi] Why Shoppers Love Using Social Media to Research Products – SOAK Creative
[vii] 2024 Mobile marketing statistics compilation | Smart Insights
[viii] Internet Traffic from Mobile Devices (Jul 2024) (explodingtopics.com)
[ix] 24 Gen Z Statistics That Matter to Marketers in 2024 (hootsuite.com)
[x] How Gen Z Uses Word of Mouth [11 Statistics] | Convince & Convert (convinceandconvert.com)
Tags: home buying, marketing strategy, real estate