Marketing and Selling to Gen Z

Dated: June 11 2021

Views: 225

Who is Generation Z? Although there is some ambiguity to who falls into this category, most can agree that anyone born after the mid-1990’s fall into this category. That means that the oldest of the bunch are probably turning 25 this year. They are the children of GenX and Young Boomers and can also be referred to as “iGen” since they have had access to technology for either the majority or the entirety of their lives. How do they compare to the generations that preceded them and how are they changing the way that we market, buy, and sell?

A new survey by FreddieMac shows that despite many obstacles, most Gen Z’ers want to be a homeowner and believe that it: something to be proud of, gives you more privacy, give you more Independence and control than renting, is a sign of success, and makes you feel like you are a part of a community. However, Gen Z is financially educated and understand that there are hurdles in place before they can become a homeowner.

Most Gen Z’ers are first time home buyers. First time home buyers make up about 30% of all home buyers and 82% of all home buyers under the age of 30 were first time home buyers.

It is safe to say that if you are looking to hit the younger demographic of buyers, they probably will not be experienced home buyers. Many may not even know where to look or how to begin. Part of your process will be walking with them every step of the way and making sure that they feel comfortable with you as their agent.

Gen Z is so far the most educated demographic compared to the generations that came before them. In 2018, 57% of Gen Z (Who were 18-21 years old) were enrolled in college. For Gen Y (or Millennials) the number drops to 52%, and for Gen X it is even lower – 43%.

Financial mindedness is a core characteristic of Generation Z. Many Gen Z-ers grew up and can recall their parents or families hitting hard times during the Great Recession. Having witnessed their parents’ struggles, this generation is driven by pragmatism and security.

The ability to learn is natural for Gen Z, who grew up with the world of information at their fingertips. Most Gen Z’ers had some way to access the internet in their upbringing, thus letting them find the answer to any question they could have. When working with the younger generation or a young first-time home buyer, it is important to make sure they understand the process. But do not sell them short, they know what they want and what they do not want and will be vocal about it.

So what are Gen Z’ers looking for in their first time home? The young generation is not currently looking for a family home. They are interested in smaller homes but still in proximity to their loved ones. The biggest factors that are influencing the home choice for Gen Z is convenience to their job, overall affordability of the home, and the quality of the neighborhood. Gen Z is the most diverse generation yet. This is a positive thing, and many older Gen Z’ers/Younger Millenials want a neighborhood and community that reflect this.

You know what they want, how do you help them find you? As was mentioned earlier, Gen Z (or iGen) is the first digital generation. Even the oldest members of the generation probably have a small memory of life before computers and the ability to access information anywhere.

The National Association of REALTORS® Research Group released the 2021 Home Buyers and Sellers Generational Trends Report where it was reported that when 22–30-year-old home buyers were asked what their fist step was in the home buying process, 33% said that they looked online for properties. 17% said that their first step was “Looking online for info about home buying process”. 88% used a real estate agent to find their home. 33% of buyers in this age group said that the most difficult part of home buying was understanding the process of steps. Finally, 91% of the youngest generation of home buyers used a Real Estate Agent to buy their home (The most of any generation).

Utilizing your website and social media will be crucial in attracting potential leads in this age group. Make sure you have a good online presence that is optimal for mobile browsing. Many people nowadays are using their smart phone to research things instead of a desktop computer because of the convenience.

When thinking about your website, consider starting a blog. You can use your knowledge as a Real Estate Agent to educate first time home buyers. This is also a great way to get them to trust you and your expertise. If you don’t want to write a blog, you could make “how-to” videos that cover the different steps in the home-buying process. Or, have a resource page of external links that take people to other sites that can answer their questions. Make sure that you trust the site and the information before you put it on your website. Lastly, making ads that are hitting your target demographic is important. Many Gen Z’ers use Instagram more than Facebook. They want quick information and easy to understand articles. Highlighting yourself instead of your listings will make them aware that buying a home is an option for them.

As time goes on, the rest of Gen Z’ers are going to be looking for a home. Then, the next generation will be too and so on. Knowing how to market and sell towards a younger crowd is a useful skill that you can start practicing now. Let Gen Z know that they can be a homeowner and that you will help them achieve that goal.

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