Multi-Generational Marketing

Real Estate Broker/Owner with Green Parachute, LLC



Sources: RECP Continuing Education Course; Senior Housing Specialist Course; NAR Surveys; NAHB Surveys; AARP Surveys



Discussion Questions:

•·        Do generations make a difference?

•·        Are all generations "equal"?

•·        Do they all demand the same level of service?

•·        What is a "trusted advisor"?

•·        How does it fit in our industry?


Catching the wave of a Maturing America

•·        78 million are over the age of 50

•·        Compare 1900 to 2000

•§         Over age 85 grew 34 times

•§         75-84 grew 16 times

•§         65-74 grew 8 times

•·        Today 1 in 8 Americans is over 65 (12%)

•·        34.5 million in US

•·        By 2030 the over 65 population will double

•§         70 million (1 in 5 Americans/20% of total)



In 2003...

•§         45-54 age group grew by 49%

•§         35-44 grew 28%

•§         18-34 declined 4%


By 2030...

•§         Working age population will increase only 15%

•§         Immigrants will represent 25.4% of older population


Ratio of working Americans to retirees:

•§         5.21 in year 2003

•§         2.57 in year 2050







The Boomer Wave

•§         Boomer population is 78 million

•§         First Boomer turned 55 in 2001

•§         Boomers will turn 65 between 2010 and 2030

•§         Demographic shifts have dramatic impact

•o       Labor markets and retirement

•o       Savings, consumption and investments

•o       Family composition and living arrangements

•o       Health issues


Boomer Financial Impact

•§         79% Homeownership rates (vs. 67% overall)

•§         77% of U.S. Personal assets

•§         60% of savings accounts/90% larger than average

•§         68% of money market accounts

•§         50% of corporate stock

•§         42% of after tax income

•§         80% larger assets than U.S. average

•§         Net worth five times national average


Boomers Generational Experience

•§         Good Times!

•§         Education

•§         Health

•§         Two income families

•§         Inheritance from WW II GI Generation


Boomer spending habits

•§         40% of consumer demand

•§         Control 48% of discretionary income

•§         Average $24,000/yr. disposable income

•§         Spend $2 trillion on goods/services

•§         Spend $14 billion on grandkids

•§         Spend $100 billion in housing market

•§         Purchase 43% of domestic autos/48% luxury

•§         Spend 74% on vacations/many with grandkids

•§         Visit shopping malls more than other ages

•§         Willing to try new brands/products

•§         27% make mortgage payments

•§         25% have credit card debt




Boomer Expectations   

•§         Customized services

•§         Consultative selling skills

•§         Expertise in real estate

•§         Planning and time management

•§         Consistency in services

•§         Trustworthiness

•§         Specialized solutions for unique needs


What do Americans consider old?

•§         Old starts at 60 (14%)

•§         Old starts at 70 (32%)

•§         Old starts at 80 (15%)

•§         Old starts at 90 (2%)

•§         Age is a state of mind (37%)

•§         Our perception? Add 15-18 years to our own age!


Defining the generations

•§         Elders (1883-1900)

•§         G.I. Generation (1901-1924)

•§         Silent Generation (1925-1945)

•§         Baby Boomers (1946-1964)

•§         Generation X (1965-1981)

•§         Generation Y/Boom Echo (1982-2001)


Quick Comparison: Seniors vs. Boomers

•§         Nordstrom vs. Home Depot

•§         Company loyalty vs. distrust of employer

•§         Moral standards vs. situational ethics

•§         Debt is a sin vs. credit is a tool

•§         Read all direct mail vs. blatant commercialization

•§         Love to write vs. email

•§         Read newspaper thoroughly vs. TV news outlets

•§         Discounts by entitlement vs. value added service


Aging in place

•§         1960 Sun City redefined retirement

•o       age restricted

•o       amenities provided

•o       smaller, downsized homes

•o       away from city

•o       away from home: sun belt living




Today's retirees REJECT that model!

•o       Stay within same neighborhoods to be close to family, friends & services

•o       86% want to stay in the same home

•o       78% want to be in multi-generational setting

•o       Amenities must reflect "active" lifestyle

•o       Homes are "personal sized" for guests, home office and hobbies.


Home Purchasers by age (NAR 2000)

•o       Under 25 (4%)

•o       25-34 (35%)

•o       35-49 (40%)

•o       50-64 (15%)

•o       65 and older (6%)


Home ownership in 2000

•o       Under 25 (3%)

•o       25-34 (17%)

•o       34-44 (25%)

•o       46-64 (34%)

•o       65-74 (11%)

•o       75 & over (10%)


Understanding the Generations

•o       History (The Greatest Generation by Tom Brokaw)

•o       Sell benefits/not features to match needs


The Elders (1883-1900)

•o       1 in 4 U.S. households is caring for an elderly family member or friend

•o       22 million Americans are caring for an older person in the home

•o       Victims of elder abuse (38% by family members)

•o       Skilled care facilities

•o       "Never sell the family farm"


G.I. Generation (1901-1924)

•o       Goal oriented: Eradicate poverty, Provide entitlements, Defeat Communism, Tame economic cycles.

•o       Family values: traditional, male dominated, at home moms, cooperative social discipline.

•o       Nesters: standard housing for years, then off to Sun City.

•o       Civic Pride

•o       Rising homeownership rates: 83% own a home; 63% have no mortgage.

•o       GI Bill and VA financing

•o       70% of over 75 yr. olds live at home

•o       Same house over 30 years (30%)

•o       Same neighborhood (80%)


Silent Generation (1925-1945)

•o       Judged against the accomplishments of GI Gen and Baby Boomers

•o       Affected by Great Depression and War

•o       Too late to be war hero; too disciplined to be free spirit

•o       Conformity and respect for elders cost them individuality and personal identity.

•o       No U.S. Presidents from this generation. John Kerry would have been the first.

•o       Generation of grandparents: by 2010, there will be 80 million; 1.4 million grandkids are being raised by or live with grandparents; 75% care for their grandchildren at least once a month.

•o       Family proximity more important than climate; many "moving back".

•o       Some moving toward assisted living as health declines


Baby Boomers (1946-1964)

•o       ME generation of 78 million

•o       More money, more resources, more choices

•o       More mobile

•o       More demanding/at times unreasonable

•o       More opinionated/difficult consensus building

•o       Need for control


Two waves of Boomers

•o       Wave One (1946-1954): seen as stuffy, pretentious, challenged society

•o       Wave Two (1955-1964): self gratification, self satisfaction, lack of commitment, later marriages

•o       PMI Introduced in 1970

•o       First BankAmericard (VISA) in 1972

•o       AMEX applications to college students in 1976

First Wave Boomers (1946-1954)

•o       Old standards questioned

•o       Hippies and Flower Children

•o       Student protesters

•o       Inner reflection and meditation

•o       Sexual revolution

•o       Race relations

•o       Late marriages/single parenthood

•o       Working moms (4 out of 5)


Second Wave Boomers (1955-1964)

•o       First significant impact in change of credit standards

•o       Self absorption over sense of community

•o       Immediate gratification/self indulgence

•o       High self esteem

•o       Less financially secure/more debt

•o       More self destructive attitude


Boomers Economic Issues

•o       Feeling the squeeze: College tuition, boomerang children, elderly parents, retirement planning, and weddings.

•o       Supporting second family

•o       50% of grandparents are Boomers

•o       Average age first time grandparent is 47

•o       79% of Boomers are homeowners

•o       Diversification away from standardization and need flexible floor plans.

•o       Feel entitled to upscale housing

•o       Housing is reflection of affluence and self-image

•o       Personal sizing, 2/3 want to increase square footage


Generation X (1965-1981)

•o       Skeptical

•o       Self sufficient

•o       Question face value

•o       Impatient/time conscious

•o       Question loyalty

•o       Multi tasking

•o       Manipulative

•o       Confrontational

•o       Problem solvers/dispute resolutions

•o       Rational

•o       Lack of identity: raised themselves, no parental bonding, no boundaries, and no limits.

•o       High divorce rates among parents/single parent households

•o       Splintered between inner city and suburbia

•o       Ethnically, culturally and sexually diverse

•o       Say home longer: student loans, competitive job markets

•o       Education scores declining: value neutral curriculum

•o       Highly intense: drive through, fast food, in your face, entrepreneurial spirit, job is life enhancing upgrade

•o       Marriage later in life

•o       Practical necessities: Home office, High tech gadgets, entertainment centers, telecommunication wiring


Generation Y (Boom Echo) (1982-2001)

•o       70 million

•o       Multicultural and ethnic diversity

•o       Multi taskers

•o       Most adaptable to new applications and evolving structures

•o       Day Care center babies

•o       "Wanted" children: surrogates, test tube, fertility drugs

•o       Back to boundaries: Family values, community support, uniforms, civic pride

•o       Housing issues: 11.4 million homes and 3.2 apartments will be built to accommodate

•o       11 million new households by 2010

Comments (2)

Jenniffer Lee
RE/MAX Complete Solutions - Boca Raton, FL
Broker/Owner/Realtor at RE/MAX Complete Solutions

Wow!  Great statistics to know!  Thanks for sharing them!

Feb 07, 2009 09:04 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Whew, that's quite a list!  Looks like a year's worth of blog topics.

Feb 10, 2009 09:55 PM