The real estate market is undergoing a major shift that’s been long-anticipated – as millennials and Gen Z hit their prime home-buying years. However, this younger demographic has a unique set of preferences that sets them apart from previous generations.
As a result, real estate agents need to understand what drives their decision-making process in order to stay competitive. In this article, we’ll dive into the reasons behind why millennial and Gen Z buyers are disrupting the industry and provide actionable advice on how to best cater to their needs.
How do Millennials and Gen Zs influence the real estate industry?
The younger generations, Millennials, and Gen Z, are shaking up the real estate industry with their forward-thinking mentality. Despite being relatively new to the game, they’ve already purchased hundreds of thousands of homes – and their preferences are quite different from previous generations.
Raised in the age of technology, these smart and educated individuals rely on Google and Wikipedia for research and have no interest in traditional library searches. They’re also accustomed to instant communication, transparent dealings, and technology-enabled efficiency.
While they may appreciate vintage items like typewriters and vinyl records, they’re not so patient with companies that cling to outdated methods of doing business. They want immediate communication, transparency, and technology-enabled efficiency.
Millennials and Gen Zs are driving new trends in real estate. They prioritize conveniences like access to public transport and nearby amenities, and they value sustainability and energy efficiency in homes. They also want properties that fit their lifestyle, with open-plan layouts and smart technology integration.
Here are some statistics on how do Millennials and Gen Zs influence the real estate industry
Millennials
Millennials, born between 1981 and 1996, are shaking up the real estate market by buying homes like never before. According to a survey by the National Association of Realtors, a whopping 37% of home buyers fall into the Younger and Older Millennials categories.
But what’s particularly interesting about this group is how they use technology when hunting for a new home. They prefer to search online, with 80% wanting 3D virtual tours and digital floor plans. In fact, they’re so comfortable with digital browsing that 39% would even buy a house without physically visiting the property.
If you’re a real estate agent looking to attract millennials and Gen Zers, you need to adapt to their communication preferences. Phone calls and long emails are out – texting and social media are in. Here’s why:
Quick and efficient: Texting allows young buyers to express interest, schedule appointments, and ask questions in a snap.
One-stop shop: Social media platforms like Instagram and Facebook provide all the information they need about a property, as well as direct contact with the agent. No need to spend hours on phone calls or sift through endless emails.
Curious minds: Millennials are eager to learn about new industries, including real estate. By offering educational materials, you can establish yourself as a valuable resource and attract new, young customers.
If you’re not already using texting and social media to connect with potential buyers, it’s time to start. You’ll be amazed by how quickly and easily you can build relationships with these tech-savvy generations.
As for location, Millennials prioritize proximity to the workplace, with 44% considering commuting costs when making their final decision. A convenient location near work is essential, with 74% seeing it as a crucial factor in selecting a neighborhood. Affordability is also a significant consideration, with 58% stating it’s important.
Surprisingly, almost half (47%) of millennial homeowners prefer the suburbs, seeking safe neighborhoods for their families and convenient transportation options for work.
Gen Zs
After Millennials here comes Generation Z who are already buying and selling properties! Gen Z, born between 1997 and 2010, is making its mark as the most diverse and globally-minded generation yet. With the growth of the internet and communication methods, Gen Zs think globally and have an open mind. Comprising 32% of the US population, this group is characterized by a strong focus on fiscal responsibility, with 85% agreeing that saving for the future is important. In fact, 63% of Gen Zers consider themselves savers, and only 37% consider themselves spenders.
As members of Gen Z graduate college and enter the workforce, homeownership is on their radar. In fact, 83% of this generation plans to buy a property within the next 5 years. And, when it comes to navigating the home buying process, 81% of Gen Zers prefer to work with a real estate agent who can guide them through the process.
The first place that Gen Z consider when buying a property is the location – it is crucial for them as they want to live in a good area with everything close to them. Gen Zs want everything now – so if they want to go out for dinner they want to be close to restaurants and bars. With some of them working from home, they will prioritize buying a property next to a park or outdoor shopping center. Space comes second on their list followed by lifestyle amenities and parking space.
Gen Zs, also known as “digital natives,” rely heavily on mobile apps when texting. In fact, they are 64% more likely to trust mobile apps compared to older generations. Moreover, their social media usage is unparalleled, with 34% of their time spent on platforms such as Instagram and TikTok, followed by emails at 33% and online ads at 28%.
For realtors targeting this demographic, it’s crucial to prioritize an online presence. Only 14% of Gen Zs pay attention to outdoor ads and 13% to traditional mail, making a digital-first approach essential for success in the market. In other words, realtors need to leverage social media and mobile apps to engage with Gen Zs and build long-lasting relationships that can translate into sales.
Propy Blog: Learn How to Attract More Buyers and Sellers via Social Media
If you are a real estate agent it’s important to understand what the new generation buyers are looking for and how they prefer to communicate in order to provide exceptional service. Have you ever wondered how to attract this whole new era of home buyers? Here are some tips:
Technology and Innovation
Millennials and Gen Zs are the first generations to grow up with technology at their fingertips. This has given them a distinct advantage when it comes to the home-buying process, using a variety of platforms and technologies for everything from researching homes to negotiating prices. They increasingly rely on mobile apps for property searches and use these apps to access real-time data such as home values, and financing options, and to compare homes online.
Not only do Millennials and Gen Zs trust technology but they also expect real estate agents to be tech-savvy when it comes to communication – text messages, video calls, or social media are all possible ways of connecting with them.
Communication
Millennials and Gen Zs place a strong emphasis on communication when it comes to their home-buying process – they want an agent who is knowledgeable but also approachable, trustworthy, and able to engage with them. They also prefer regular contact so that they can stay up-to-date with the latest news and developments related to their purchase.
Additionally, they should be prepared to provide detailed information on the latest real estate market trends as well as their recommendations for the best property for a buyer’s unique needs.
Increased access to real estate listings and education
Millennials and Gen Zs have increased access to real estate listings, education, and advice through digital platforms. This has made the home-buying process easier than ever before for this generation of buyers as they can easily find detailed information on various neighborhoods, schools, taxes, and other relevant details. Additionally, online resources like blogs, podcasts, and webinars provide an in-depth look at the buying process from start to finish. This makes it simpler for them to make more informed decisions when selecting their dream home. Furthermore, agents can offer additional support by providing access to e-books or video tutorials featuring expert advice on how best to approach a purchase.
Transparency
In a world where time is of the essence, new home buyers are looking for effective ways to manage their schedules. That’s why real estate professionals must adapt to these new trends and use innovative tools that allow for quicker and easier communication with clients.
Propy is the game-changer in the industry that is revolutionizing the way buyers, sellers, and agents communicate during the home-buying process. With Propy’s user-friendly platform, everyone involved can access data in real-time with just a click, making the entire process safer, more efficient, and more transparent. Additionally, Propy’s smart contract feature ensures that all transactions are stored on blockchain and tracked by all parties involved. This eliminates any confusion or miscommunication, adding a layer of reliability and trust throughout the entire process.
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The new forms of payment: Cryptocurrency
As Millennials and Gen Zs continue to navigate the digital landscape, they are finding that the use of digital currencies is becoming more prevalent in their day-to-day lives. From receiving payments in cryptocurrency to making purchases with digital assets, this digitally adept generation is quickly adapting to new ways of transacting value.
With many Millennials looking to invest in properties, the option to buy a home with digital assets is becoming increasingly popular. The advantages of faster transactions, transparency, and security provided by the blockchain make this an attractive option. In the fourth quarter of 2021, a survey conducted by Redfin revealed that 11.6% of first-time U.S. homebuyers used funds raised from selling cryptocurrency to help with their down payment. This shows that even in the volatile world of crypto, it can be a viable option for those looking to break into the housing market.
At Propy, our platform allows buyers to purchase their dream home with both dollars and cryptocurrency, offering an efficient and secure transaction completed in minutes. This not only simplifies the process but also ensures that funds are transferred immediately and without any hassle, providing peace of mind to buyers who may be unfamiliar with traditional methods of real estate purchases. So, if you are a realtor looking to attract more clients, understanding what is blockchain, cryptocurrency, and how to close deals on chain will help you stand out from the crowd.
Want to be prepared for the new wave of home buyers and sellers?
If you’re a real estate professional looking for the next step in your career, we offer a comprehensive online course that will equip you with the knowledge and skills needed to succeed. From mastering the intricacies of Web3 to working with crypto buyers and sellers, this course will prepare you to confidently navigate the intersection between real estate and blockchain.
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