Want to know where the next decade of housing business is
coming from? Count the people!Today, two generations are driving the lion share of real estate activity: Millennials (Generation Y) and Baby Boomers. Together, they represent nearly 153 million Americans and are creating opportunities at opposite ends of the housing journey. Millennials are buying first homes in massive number (87 million), while Boomers are retiring, relocating, downsizing, and purchasing second homes (66 million).
Millennials: The First-Time Homebuyer Wave
Born between 1985 and 2004, Millennials have become America's largest adult generation by a lot. Now you know why we have a housing crisis. Many delayed marriage, children, and homeownership compared to previous generations, but they never abandoned the dream of owning a home.
Who are they…Consider Jake, a 34-year-old renter. Before contacting a lender or realtor, he's watched YouTube videos, read countless articles and reviews, checked rates and homes on five different websites. By the time he reaches out, he isn't looking for a salesperson. He's looking for a trusted guide.
That's the marketing lesson: educate first, sell second. The lenders and agents who answer questions, produce useful content, and simplify the process are often the professionals who win Millennial business.
Baby Boomers: The Great Housing Reshuffle
Born between 1945 and 1964, Baby Boomers are now entering or enjoying retirement. Nearly 79 million Americans were born during the Baby Boom, making it one of the largest generations in U.S. history behind Generation Y.
Many Boomers are asking different questions:
- Do we
really need all this space?
- Should
we move closer to family?
- Is now
the time for a warmer climate?
- Would a second home fit our lifestyle?
Selling Lifestyle, Not Just Housing
The most successful marketing recognizes that these generations are motivated by different goals. Millennials want answers before they want applications. Boomers want freedom.
Millennials respond to messages like:
- "How
Much Down Payment Do You Really Need?"
- "5
First-Time Homebuyer Mistakes to Avoid"
Boomers respond to:
- "Turn
Home Equity into Lifestyle Equity"
- "Is
It Time for Your Next Chapter?"
In both cases, the transaction is emotional before it's financial.
The Housing Relay Race
Perhaps the most interesting trend is that many Millennials
are buying homes from Baby Boomers. A
Boomer family sells the four-bedroom colonial they've owned for 30 years. A
Millennial family buys it and starts the next chapter of its story. The Boomer
moves to a condo, a ranch, or a 55+ community.
It's a housing relay race, and both sides need trusted advisors.
The Bottom Line
Interest rates and housing prices matter, but demographics
drive long-term opportunity.
Right now, roughly 87 million Millennials are moving into their prime homebuying years, while 66 million Baby Boomers are making retirement and lifestyle housing decisions.
One generation is asking,"How do I buy my first
home?"
The other is asking,"Where do I want to spend the
next chapter of my life?"
For mortgage and real estate professionals, understanding
those two questions may be the most powerful marketing strategy of all.
Mark Harrington is co-owner of Horizon Home Mortgage since
2007 and SMJ Insurance (an Allstate Ins. Agency) since 2011. My passion is helping homeowners and those
who want to own a home achieve their homeownership goals in CT and MA. I also specialize in Reverse Mortgages. I am a self-proclaimed ‘Power Networker’ and
‘Demographic Nerd’.
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