There’s nothing quite like helping a young person buy their first home. Even with rising interest rates, inventory shortages, and an economic recession, first-time homebuyers remain a lucrative market for real estate agents. The information below is crucial to successful marketing to first-time homebuyers.
Millennials Are the Biggest Home Buyers
Millennials are buying their first homes – and buying them in record numbers. The 2022 National Association of Realtors (NAR) Buyer and Seller Generational Trends Report found that the number of young, first-time homebuyers is on the rise. Millennials, identified as those born between 1980-1998, make up 43% of all American homebuyers. Within that group, the NAR survey broke down Millennials into Older Millennials (those born 1980-1989) and Younger Millennials (born 1990-1998). Older Millennials make up about 25% of home buyers, while Younger Millennials (currently ages 23-31) make up the remaining 18%.
However, the Young Millennials account for 81% of all first-time homebuyers, making them the generation for real estate agents to watch.
Note: Read this blog to learn more about the issues impacting Millennial home buyers.
Challenges Facing Young First-Time Home Buyers
While many Millennials (and even a small percentage of the Gen Z population) are ready to purchase their first home, the current housing market is making it difficult. Inventory is still extremely low, even with rising interest rates. And smaller, more affordable homes are often snatched up by cash buyers – usually high-net-worth investors and hedge funds. With so few options, many first-time homebuyers are frustrated, often making several offers before finding a home. Some simply give up, returning to life as a renter.
Millennials have been slow to purchase homes in the past, but the pandemic pushed many young buyers into the housing market. Today’s first-time buyer is older on average than in previous generations. During the pandemic, many Millennials stayed home, saved money, paid off debt, and are now financially ready to purchase that first home.
The bottom line? Millennials are prepared to buy homes and are looking for real estate agents to help them do so.
If you’re a real estate agent, the time is ripe to connect with the younger generations and ensure your business success.
Millennial Home Buying Statistics
- Young Millennials (those born between 1990-1998) make up 81% of first-time homebuyers in America, according to the NAR report.
- First-time homebuyers are far more likely to purchase a pre-existing home than new construction.
- The average home price for properties purchased by Young Millennials was $250,000, while Older Millennials spent an average of $315,000.
- Millennials report turning to real estate agents for home buying advice. The majority – 99%, according to the 2022 NAR report – find homes for sale and real estate agents online, mostly via mobile phones or tablets.
If you’re not using social media, website design, and other technology to reach today’s first-time homebuyer, you’re going to miss out on a booming real estate demographic.
Marketing to Millennial First-Time Homebuyers
Using the statistics above, Realtors can fine-tune their marketing strategies to actively engage with younger first-time homebuyers.
Create a User-Friendly Website
First-time homebuyers begin their home searches almost exclusively online. If your real estate business’s website is lackluster, you’re not likely to appeal to millennial buyers.
Not sure how to build a real estate website that is jaw-droppingly gorgeous and easy to navigate? We’ve got you covered. The Winning Agent realty-specific website themes give you a hassle-free website design that is easy to update. Learn more about the Winning Agent WordPress themes here!
Engage on Social Media
Millennials (and, therefore, many first-time homebuyers) live their lives online. From finding new restaurants to connecting with college pals to purchasing their first homes, millennials do it all through the internet.
Many millennials rely on social media to find information, including finding real estate agents and homes for sale. First and foremost, you should establish social media accounts on all the major platforms, then update them regularly. For more tips about social media marketing, check out this article.
Be Mobile Friendly
Millennials – like many of us – are attached to their phones. In fact, most millennials report performing online searches on their mobile devices, rather than a desktop or laptop computer. Keep that in mind as you create your website and marketing materials: you’ll want to ensure everything looks just as dazzling on a mobile device or tablet as it does on your computer screen.
Your website and social media accounts should do more than simply advertise available properties. Today’s homebuyers want to get to know you: to understand how you operate your business and help your clients find the perfect home. Every post is an audition.
To that end, you should make content creation a priority during your business day. Website and social media content help you reach new clients and help existing followers learn more about your business and your expertise. Content can be anything from blog posts, informative articles, live social media interactions, or short social media posts that increase your visibility with your followers. The more content you create, the more clients you’ll reach, and the more credibility you’ll have.
Take Great Photos
Millennials reported being more likely to tour a home if a listing featured professional photos and detailed information. Every time you’re the listing agent on a property, take the extra time to ensure all images are crisp and attractive, and that the details provide plenty of in-depth information. Who knows? You might attract a first-time millennial buyer with your attention to detail.
Have you represented first-time homebuyers? Tell us your tips for marketing to millennials in the comments below!