Thursday, August 4, 2011

Real Estate Tips: Get to Know Generation Y

Back in April, we posted a blog titled, “Younger Generation Predicted to Turn Real Estate Market Around”. We focused primarily on the young families and adults that made up Generation X (32-45 year olds). New research is also putting a lot of emphasis on Generation Y (15-32 year olds). The statistics suggest they will be a strong driving force for the next ten years!


Why is this group different from their older peers? The group is about equal to the baby boomer generation, about 77.4 million individuals. By sheer size alone, they are a significant percentage of the buying market. They make up over 25% of home buying age. They tend to be highly educated; more than 60 percent of them go to college. As more of this generation joins the work force there is going to be a “massive increase in housing demands”, according to University of Southern California Lusk Center for Real Estate.

Below is a list of what you need to know about this group in order to market to them:

Importance of Technology

This generation has always had access to computers. They are very comfortable with new and innovative technology and use it to the best of its abilities. This means they are doing research on real estate! Whether it’s pricing what they want or finding out how the market is doing. You need to know what they already do. Social Media and web surfing are daily habits on their end, they expect answers fast. They want to know that turning to you as an expert that you are listening to their questions and answering them. Embrace technology to locate generation Y buyers and keep connected.

Understanding their Schedules and Priorities

This generation is also very cautious. They have grown up in a time of uncertain markets. They are savvy buyers. They are highly educated, and research most major purchases. They are having trouble getting jobs or are afraid of cutbacks at their jobs. This comes into play with their spending habits. However, this does not discourage spending, it just creates priorities. Generation Y is already purchasing property younger than the generation before them. The average first home purchase is 26 years old (Generation X is 28). Understand what has shaped their thinking and appeal to it, don’t fight it.

Lifestyle is Key

These individuals are strongly influenced by their lifestyle. They like urban living where they can walk and ride bicycles to get where they want to go. Generation Y is getting married and having kids later. They view real estate as short-lived investment before their next stage. Most important features are convenience to where they want to go, shopping, restaurants, and amenities. Most of this generation also prefers low-hassle or maintenance free living. This means they don’t want a large yard to mow on their own. Entertaining and open spaces to accommodate guest is high on their want list. Also, useable outdoor living space highly appears to their outdoor nature. Find out what your buyers want and market it highlighting these key features.

If you have any questions or would like to talk to a real estate professional, contact SI Real Estate at 813.631.5144 or yourhome@sirealestateinvestments.com. We know how to set up for the next wave of clients. Also, if you are looking to join a real estate firm that is changing with the market, contact us for current agent positions.