Revealing Statistics About the Millennial Homebuyer

Savvy tips for real estate agents looking to win over this growing market segment

Preparing for the expanding market presence of millennials is one of the hottest topics in real estate. Millennials made up 36% of homebuyers last year^[1], and that percentage is expected to increase as young people move out of apartments and their parents’ spare bedrooms, and older boomers move into retirement living.

NAR reports that their median member age is 53 years old^[2], so odds are you are not a millennial. However, take it from the youngest employee in the Adwerx office; you don’t have to be one to attract and impress millennial clients. It just takes a little know-how.

How to get millennial clients

Millennials are undeniably tech savvy and expect the same from the agent who will be guiding them through one of the most important purchases of their life.

On any given day in America, thousands of millennials are being called upon by their parents to help them set up a new computer, Facetime, or explain what this Bitcoin thing is all about. Millennials have grown up surrounded by swift technological advancements, and have become accustomed to using technology in nearly all parts of their lives, from sleep trackers to social media. The home-buying process is no exception.

82% of millennial homebuyers use a mobile device in their home search and over 80% of millennials are on Facebook^[3]. Adwerx mobile and Facebook zip code ads target people in your area who are interested in buying or selling real estate, following these people around the internet so that your ad displays on the sites and devices that millennials are already using.

Know the facts

According to NAR, 83% of millennials contacted only one agent¹, so reaching them first through sophisticated digital advertising is extremely important. However, making your clients happy is just as, if not more important, than winning them in the first place.

Giving millennial clients a positive experience is simple. You just have to recognize that the majority of millennial homebuyers are first-timers (66%)¹, and they need your help and expertise to guide them through the process, but also to explain it every step of the way.

In fact, 75% of millennials cited “helping them understand the process” as the biggest benefit their real estate agent provided to them when buying a house. By comparison, boomers, likely 3rd or 4th time buyers, reported this as a benefit only 46% of the time¹.

Millennials are used to having knowledge at their fingertips, and thus expect to intimately understand the home-buying process. You, as a real estate expert, can provide the most value to them by helping them decipher all of the confusing and contradictory information to be found on the web. By acting as their go-to knowledge source, you can make buying a home a much less stressful affair for them.

On average, millennials only spend 6 years in a home, compared to 10 years for all homebuyers¹. Millennials are also more likely to move within the same city than boomers transitioning to retirement living. The higher probability of repeat clients justifies paying special attention to the millennial contingent.

Don’t forget your new sphere connections

Referrals are the life-blood of real estate agents, and millennials are not only more likely to ask friends for recommendations than older generations, they are also less likely to have an established connection with a realtor. Ensuring that your millennial clients leave their real estate transaction satisfied is extremely important, as they are also more likely to leave online reviews.

Plugging past millennial clients into your sphere campaign will keep you top of mind when they decide to buy or sell again and ensure that you are the first person they think of when their friends ask for realtor recommendations.

The best approach to keeping up with the growing millennial segment of home buyers blends easy-to-use, yet sophisticated technology with your own old-fashioned know how. Used together, this combo makes it simple for any realtor to capitalize on the expanding millennial contingent.

^[1] https://www.nar.realtor/research-and-statistics/research-reports/home-buyer-and-seller-generational-trends

^[2] https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

^[3] http://www.pewinternet.org/2018/03/01/social-media-use-in-2018/