The year 2020 kicks off a new decade, and we expect to see plenty of unique opportunities open up for the real estate industry in the coming years. In this post, we wanted to share a few of the important trends to follow in 2020 and beyond. By keeping an eye on these trends, you will allow yourself the opportunity to fully capitalize on your marketing efforts.
Our Parents (Baby Boomers) are Getting Older
Americans born between 1945 and 1960 are reaching their retirement years at an accelerated rate. In addition to retiring, many of these individuals and couples are empty-nesters as well, and a 4-bedroom home seems excessive for just one or two people.
Over the next 10 years, expect the number of sellers in this demographic to increase dramatically. According to the 2019 Home Buyer and Seller Generational Trends report, approximately 1 in 5 sellers were between the ages of 64 to 72.
How to Market to This Demographic
Your real estate market will play a major role in how to approach your marketing strategy for sellers 60 and older.
Real estate agents who live in the Midwest and Northeast are generally going to be selling their homes and moving out of state to warmer climates like Arizona and Florida. In this example, your marketing strategy should be heavily focused on generating seller leads via direct mail, email, and social media.
If you live in the Southwest or Southern states, a two-prong approach will help you maximize your earnings potential. In regards to seller leads, you can focus your targeted mailing lists to subdivisons with 3- and 4-bedroom floorplans with homeowners above a certain age, and pair that with generating buyer leads through the most popular retirement communities in your area.
Millennials and Gen Z Are Buying Homes
On the opposite end of the home-buying spectrum are adults ages 23 to 35. Although these generations account for a smaller percentage of all home purchases, they will be the driving force of home purchases over the next 10 to 15 years.
The key to this particular demographic is the type of homes they prefer as opposed to their parents and grandparents. Given the choice between a large home in a peaceful subdivision with a 45-minute commute or a smaller home in the heart of a vibrant city, they will choose the latter more often than not.
Marketing Focused on Millenials and Gen Z
Building off the key in the last paragraph, marketing to this younger demographic is extremely location-dependent. A vibrant community where residents can live, work, and play without leaving is going to attract young adults in this age range, and focusing your marketing efforts on specific residential buildings has a strong chance of success.
In fact, this is exactly how Laura used Wise Pelican to generate leads for her business. Learn more about her Wise Pelican Success Story by clicking here.
Another important factor to consider when marketing in these vibrant communities is turnover. Since the Millennial/Gen Z demographic are far more likely to move frequently than past generations, becoming an expert in a popular condo/townhome community has much more value to a real estate agent.
The Technology Expansion in Real Estate
It started with Netflix and Redbox disrupting the movie rental industry, and the impact of technology has since expanded into ridesharing, investment, and even car purchasing. Over the last few years, a variety of real estate services that allow clients to sell their home without the services of a real estate agent have begun to take traction.
Some have argued that these services will cause a shift in how people utilize real estate agents. But will they?
Key Factors to Consider Regarding iBuyer Services
Human beings may trust a Redbox kiosk with a nightly DVD rental, or a non-taxi giving them a ride, but when it comes to an algorithm determining the value of someone’s house, the stakes are significantly higher.
A movie rental can go bad and cost someone $5, but that certainly won’t ruin their lives. However, when homes are the most expensive purchases/sales most Americans will make, the prospect of eventually missing out on tens or even thousands of dollars should make most people at least a little bit skeptical.
Marketing Towards Prospective iBuyer Clients
This is entirely dependent on your real estate market, but if your area is big enough to attract iBuyer services, the key to marketing is simple: show them why you and/or your team provides a better service. In the best-case scenario, a client who originally received an offer on their home from Opendoor or Offerpad, thought they could do better, and maximized their investment by using you as their listing agent.
If they are also willing to provide a client testimonial, you have a diamond-level value proposition for all future prospective listing clients.
For most other situations, the key marketing strategy is to make connections, and demonstrate your expertise in a particular neighborhood or subdivision. After all, an algorithm, no matter how advanced it is, has its limitations, and a savvy real estate agent can capitalize on these limitations.
Share With Us!
How have any of these trends affected your real estate business? What plans do you have in place to leverage your business to capitalize on these trends? Let us know in the comments below!
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