Real Estate in the ‘Y’ Generation
Just as the Baby Boomer Generation is beginning to retire and create a new real estate market in ‘sea change’ and ‘tree change’ properties, the youngest emerging generation is beginning to make its impression on the real estate marketplace as investors and as agents. Generation Y – those born between 1980 and 1994 – are entering the workforce and stamping their personality all over it. In real estate terms, we will see a growing number of these ‘new gen’ agents starting to influence how properties are marketed and help shape the real estate industry from the inside. Generation Y represents 20.5% (just over 4M) of the total Australian population. It is estimated that this generation already represents 8% of the total number of real estate agents in
Australia and when you consider that the youngest Generation Y is only 13 years old and the oldest is 27, their influence is only just beginning. Generation Y is on target to dominate in the next 2 decades. So how will they influence the real estate industry? To fully appreciate that, we have to look at the common traits of a Generation Y person. The Gen Y’s are consumed by entertainment, savvy about technology, ambitious, hardworking, accomplished multi-taskers, highly transitional and reward driven. Basically, they want more and they want it faster. As you might expect, they develop a strong need for independence at an early age which has been driven by the fact that many come from single parent families.They are also shaping up as the highest achievers of any generation we’ve seen so far and represent enormous market potential for those in the housing, retail and entertainment development industry who understand their needs and desires. They love to shop, they are accustomed to abundance, and they tend to buy disposable items rather than those that can be repaired. Given their purchasing power and willingness to spend, Generation Y will heavily influence our marketplace for the next 20 years. The young agents from this generation who are already working in real estate can be found predominantly in the capital city markets. Unlike their older counterparts they are willing to develop ‘a business within a business’ with their own assistants and PA’s. Smart agents understand that to market to this generation, they must be flexible, fast, accurate, knowledgeable and be prepared to provide services the client cares about and make it fun.The housing needs of Generation Y are proving to be far different than those of their parents. Unlike many baby boomers, who tended to marry and have children in their 20’s, Gen Y’s are indicating they want to postpone marriage and parenthood far longer than their parents. Because their social interaction centers on night life, rather than entertaining at home, they are satisfied with small housing units or houses on small easy care blocks of land.
For those who do choose to buy property, glass, metal, aluminum, bold colors, lofts, lots of light, and open floor plans are very popular. High-speed Internet access is critical. This group prefers living close to work, recreation, shopping and entertainment, and places a high value on living in areas they perceive as offering a good quality of life. Because they are environmentally conscious, they will seek out ‘environmentally friendly’ developers.
Since Generation Y’s are the most sophisticated media generation ever, creating their own web sites and making their own CDs and DVDs, real estate agents need to ensure they’re proficient in the use of developing technologies.
They are called Generation Y but they could be referred to as Internet Empowered Consumers (IEC), who don’t want to be “sold”.
Generation Y are tomorrow’s home buyers. Real estate professionals who realise this and do not rely on the same communication channels used to reach their parents will be the winners.
Tips on reaching IEC’s or Generation WISE
Let them have control. They want control and have the power to get it. The internet has not only allowed the tech savvy to gather a mountain of information without the salesperson but it has allowed them to do it with anonymity.
Respect their privacy. Explain that their privacy will be respected and then do nothing to abuse this promise.
Give them some space. 19 out of 20 online enquires are ‘soft’ and for information only. Be prepared to nurture the relationship for long term results.
Email Kevin at kevin@realestatetalk.com.au
September 10th, 2007 at 1:24 pm
Hi Kevin, very interesting comments, and congratulations on the blog.
In regards to ‘Gen Y’s’, I think at times we can over estimate their “super powers” with regards to using technology as real estate industry participants. One of the key factors to consider with Gen Y’s is COD, aka Content on Demand. Gen Y’s love to be able to use technology to obtain the information they want now, if not yesterday. The Internet revolution has provided the ability for the population to do this i.e being able to search 150 properties in one sitting online, rather than having to visit a high volume of properties physically. The Internet revolution has made Gen Y’s what they are today, and this is the key factor to consider when servicing their needs.
On this, I believe that as consumers are now enjoying richer media when they want it i.e. video streaming online as opposed to programmed TV, with ever growing capabilities, agents must look at the needs of Gen Y’s more than ever (strongly considering the issue of consumer choice) to understand how they should be marketing to Gen Y’s. A very simple way of looking at the problem is this.
- Understand the available technologies
- Understand your audience
- Use the power of technology to reach your audience
- Engage the audience with the message you send
Gen Y’s are one of the best things that ever happened to real estate, embrace them, for their habbits reflect strongly the future, and remember…
“Gen Y’s love to spend, use technology to reach them via the mediums they use, and the possibilities are endless!”
September 10th, 2007 at 3:38 pm
Paul
Thank you for your comment. I know who you are you typical Gen Y’er or should I say Generation Wiser!!!!
Kevin