It's time to add Millennials to your Real Estate Prospecting Mix
Since the end of the Great Recession, the market has slowly but surely started straggling back from the brink. However, noticeably absent from the table in recent years have been first time homebuyers. Yet, there's good reason to believe that's about to change. The biggest driver of that change? The Millennials are finally ready to leave the basements and Pretty -Pony -clad bedrooms of their childhood nests and when they do, research shows they want to buy a house from you.
While nothing is a sure thing, industry leaders are confident that a perfect storm of factors is taking shape that will nudge this demographic--at 77 million strong-- into the market. In fact, the Joint Center for Housing Studies of Harvard University found that “the number of households in their 30s should increase by 2.7 million over the coming decade, which should boost the demand for new housing."
Millennials--defined as those born between roughly 1981 and 1999-- are a funny bunch. In the wake of the great recession anywhere from 30 to 50 percent--depending on the year-- went back home to live with their parents to save money. They had seen firsthand the effects of the housing and crash and vowed they'd do two things: save up and never own a house. And many kept these promises often leaving their childhood home to live the carefree life of a renter. And since many of them delayed marriage and children in favor of career, they could.
But now, they are getting older, with the oldest of the generation just turning 34 this year. The rings are on the fingers and babies are on the way. Their careers are taking shape and becoming more stable. They want roots. They want community. They want for their kids what they had, but better. In short, they want a home. Ninety-three percent of them anyway, according to Trulia.com.
And now is the time. Rents are rising faster than home prices and if nothing else, this generation likes a value. They see the benefit of paying themselves with a house payment instead of someone else with rent. Furthermore, where credit might once have been an issue, it will be less of one in 2015 and beyond since lenders Fannie Mae and Freddie Mac released new, more relaxed lending guidelines aimed at the first-time homebuyer late last year. Combine all this with an increase in new construction of smaller starter homes, a stronger job market, and still-low interest rates and you have the makings of a significant new, untapped market.
Not only that, but when millennials start buying it's going to have a ripple effect. Those who've been wanting to sell but fearful no one was buying will start to feel more confident that there is a large group of potential homebuyers champing at the bit to get into a home and will start to look to get theirs on the market.
Target Millennials with Pinpoint Accuracy using the Mojo Dialer
So what does this mean for you? It's going to be critical to have the systems you need in place to seek out and accommodate all this potential business. For instance, Millennials are a social generation. They want their communities and neighborhoods to reflect that. When they aren't living in densely populated urban villages, according to Nielsen Research, they are seeking out "urban burbs." These are suburbs that have the feel and amenities of more urban areas. To find these neighborhoods, use the Mojo Just Listed Just Sold Neighborhood search. This tool allows you to map out a calling area right in the middle of a hot ticket area or an up and coming neighborhood that might meet any Millennial's must have list. It's instant, it's targeted, it's perfect for this purpose.
Now, this trend is not a secret. People have been talking about it for months. That said, Mojo--with tools like Real Estate Expired Data, Real Time FSBO Data and Aged FSBO -- will stock your call lists with the most effective and most up to date information, allowing you to catch millennials and prospective sellers quicker than the competition.
And don't forget the Real Estate Dialer. For while millennials may not have landlines, their parents likely do. This creates not only a great opportunity to enlist the parents' as allies in your quest for their millennial's business while real estate prospecting, but also presents yet another market to tap. After all, with their millennial gone, it may be time for mom and dad to begin thinking about their own new chapter.
(Want to find out how you can benefit from Mojo’s Real Estate Dialer and Real Estate Lead Service? Click here to learn more about how Mojo can help you be more productive, better organized and dramatically improve your real estate prospecting results!)