Generation Z and Real Estate: What Appeals to the New Breed of Homebuyers?
Whatever the economic climate may be, the demand for housing is ever-present. Though from time to time it may fluctuate, there is always a new generation, a new player coming into the market. As Generation Z are entering their mid-twenties, they are also getting serious with entering the real estate market.
And who are the Generation Zers?
Facts about the Generation Zers
Members of Generation Z are those born between 1997 and 2015. They compose over 20.35% of the US population. Generation Z is deemed to be the most ethnically and culturally diverse, highly educated yet, and the most tech-savvy as compared to older generations.
What defines Gen Zers from others is their relationship with mobile technology. While millennials only began adopting emerging technologies as they enter adulthood, social media, digital communication, mobile devices have always been a way of life for Gen Zers.
Although social media has a prominent role in the lives of Gen Zers, they are very much careful with their privacy as compared to previous generations.
Particularly when it comes to marketing strategies, Gen Zers are sensitive. For them, the typical marketing tactics are somewhat intrusive. This generation prefers authentic, non-invasive, and personalized means of communication.
Home Ownership and Gen Z
While millennials came of age when the housing market crashed, Gen Zers only saw the continuous upswing of the real estate market growing up. Most Gen Zers have no memory of how it was like for families during the Great Recession.
Gen Zers are more optimistic than millennials when it comes to homeownership. Based on surveys, the majority of Gen Zers feel that their generation has much better opportunities than millennials.
Gen Zers have good reason too to feel more positive about the future. As compared to previous generations, this cohort has a more fiscally responsible attitude.
85% of Gen Zers agree how important savings are with 63% saying that they consider themselves as economizers while only 37% see themselves as spendthrifts.
Nonetheless, this generation experiences the same problem as previous generations when it comes to housing affordability.
Data shows that for young people to raise the 20% downpayment for a house, it takes three times longer. The majority of Gen Zers have also their share of debts, sometimes making it hard to find the best home mortgage lender.
All things considered, Gen Zers are visibly the new players in the real estate market. Knowing what ticks them off and what appeals to their senses, and how their psyche works are crucial.
How to Appeal to Gen Z Homebuyers
1. Strong Online Presence
Digital technology plays a huge role in the lives of Gen Zers. They spend the majority of their time online. They do their initial research online. So, if your company does not have a strong online presence, or worse, no online presence at all, then forget about marketing to Gen Zers.
It takes more than just a website to build an online presence. Having a strong social media presence on various SNS is also important.
2. Instant Communication
Along with having a strong digital presence is the need to be available to communicate 24/7.
Living in the digital age means instant communication, and Gen Zers expect you to respond immediately to any queries. Thus, it would be helpful for your company to develop chatbots. Chatbots can cater to some basic questions.
Omnichannel communication lines are also important for Gen Zers. They do not want to repeat the same things over and over again when communicating with you. They want streamlined, transparent communication.
Generation Z values honesty and transparency. It is not surprising as this generation has grown up in a world that is becoming more and more aware of the issues and nuances surrounding equality and social justice.
Gen Zers love to do their own research before doing business with a company. They put so much value on reviews and feedback. For them, a company that could address complaints directly with transparency and acknowledges failings is more impressive than ones that put on a front.
4. Informative Marketing Strategy
Although the same with millennials facing surmounting student loans and other debts, almost all of Gen Zers are positive about the prospect of becoming homeowners. As mentioned, compared with previous generations, Gen Zers have a better grasp when it comes to finances.
However, most of them do not feel confident in their understanding of how mortgages work. So, aspiring homeowner Gen Zers, are gravitating towards informative marketing strategy. That is an educational marketing method, catering to their needs.
Free online resources, infographics, and how-to videos will surely work in favor of companies aiming to get Gen Zer’s attention.
5. Accommodate Their Needs
Part of being conscious of social justice issues is the need of Gen Zers for financial inclusion. While previous generations have placed so much emphasis on the typical ‘American dream’, Gen Zers value equality, individualism while being community-conscious.
For Gen Zers affordability of housing is important. Seeing the struggles of millennials, this cohort is more frugal and more in touch with the financial climate. They are more mindful in managing their money to avoid common pitfalls, such as being drowned in student debt.
As we have seen in the last two years, everything is uncertain. But one thing is for sure though, another young generation is entering the real estate market.