Millennials aren’t just dominating 2020’s planned marketing strategy for selling electronic devices and Uber rides. Real estate agents, too, can find fruitful ground in millennials’ pockets, according to predicted 2020 real estate trends.
How can you get ready to market your properties to this growing market? Start with research. In today’s data-driven world, marketing giant David Ogilvy’s advice is even more potent today than when he first wrote it: “Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals.”
According to Realtor.com® research, millennials are snapping up homes—more than any other generation. As they mature and earn even higher salaries, that number should only increase.
In fact, forecasts predict that during the next decade, millennials will purchase nearly 10 million homes. When you add those new buyers to the 36.8% of millennials who currently own a home, you realize that this market is ripe for picking.
"[During the next decade], millennials will purchase nearly 10 million homes…This market is ripe for picking."
Additionally, out of that 36.8%, you can bet that many of them will upsize their homes, as both their incomes and their families grow. A large majority of them will buy detached single-family homes instead of opting for the conveniences of a condo.
Surprisingly, most of them opt for homes in suburban areas or subdivisions, opting for stability over walkability. Most choose homes within 10 miles of their previous residence, wanting to keep their short commute to work.
Since millennials’ biggest barrier to homeownership is the down payment, most of them look for homes in the $100,000-$300,000 range. A lower down payment might be the reason that 67% of them will consider buying a fixer-upper, knowing that their youthful energy will be up to the task of sweat equity.
"More than 60% [of millennials] prefer to search for homes on their mobile devices, with 58% of them buying a home that they found while they were on their phone."
Now that you know what kinds of homes appeal to most millennials—and how much they can spend—you’ll be able to determine which listings you want to market to them. To get ready to market to them, though, you need to learn where they spend their time—and how they search for their next home.
It’s probably no surprise that almost all millennials will start their search online. It’s also no surprise that their instrument of choice for their search is their smartphones. More than 60% prefer to search for homes on their mobile devices, with 58% of them buying a home that they found while they were on their phone.
Third-party platforms like Zillow and Trulia dominate their online search. That’s why, says household finance guru Dave Ramsey, real estate agents would be wise to invest in high-tech methods to showcase their millennial-friendly listings, such as aerial videos and 360-degree virtual walkthroughs.
Millennials’ love of tech extends to the chatbot universe. With 67% of them willing to buy services and products from a chatbot, using a chatbot is an excellent way to reach out to the millennial cohort.
Chatbots’ ability to ask and answer questions is the perfect way to qualify millennial customers. Whether it’s finding out the type of home they want and how much they want to spend or showing them homes during the chat to further refine their preferences, real estate agents would be wise to take advantage of this low-cost, high-results technology when dealing with millennials.
With 70% of millennials reporting positive experiences with a chatbot, it’s a no-brainer to leverage these tools to capture leads, qualify them, and market appropriate properties to them. Even more importantly, their round-the-clock availability caters to millennials’ desire to have instant everything—including information about your properties.
To learn more about how you can capture the lion’s share of the booming millennial real estate market through real estate chatbots, contact the team of chatbot creators at Automated Dreams today.