Are You Ready for Generation Z?
Move over Millennials. Generation Z is Moving Into Real Estate.
Now that you’ve (hopefully) learned about how to market to the millennial generation (ages 24-38 in 2018), there’s a whole new generation of buyers emerging in the market: Generation Z also known as the iGeneration. It’s generally accepted that Gen Z includes those born in the mid-90’s through the early 2010’s; approximately ages 3-23 in 2018.
To give you a glimpse into their unique perspective, here are a few pertinent facts about Gen Z:
- Amazon was born before this generation.
- Instagram and Snapchat are the social media platforms of choice.
- Shopping and reviewing products have always been done online.
- Buffering, waiting for downloads or dial-up connections are all foreign concepts.
- According to data from the National Association of Realtors, this generation values home ownership and sees it as an ultimate life goal. 97% of Generation Z believe they will own a home in the future.
- 81% plan to use a real estate professional during the home-buying process.
This information is important to consider as the market shifts towards Gen Z. As they come of age and begin their home buying journey, they will give no thought to companies who are not tech savvy or conveniently available online. This means you need to be prepared to interact with Gen Z customers 24/7. Business hours don’t tend to apply with today’s technology and the internet, so to capture and keep their attention, you need to be available when, where, and how they want your services. You have to stay relevant, or they quickly move on to their next available option.
Generation Z will become the largest consumer group in the US and Europe by 2020—40% of the population. That’s less than two years from now!
How to Approach Gen Z
With the cost of rent skyrocketing and the housing market remaining fairly stable, now is the time to think about how to approach this new client base. What else do we know about Gen Z?
- More than two-thirds of Gen Z buyers spent less than three months searching for a home before purchasing, compared with 54% of millennials and less than half of both Gen X and Baby Boomers.
- Gen Z buyers are more likely than older generations to purchase a home in the same neighborhood as their previous residence—they like to stay close to family and friends.
- Gen Z has different priorities. While they dream of plenty of space and amenities, they say they’re ready to compromise on almost anything to keep their costs to a minimum.
- Their gadgets and technology are valuable to them. Gen Z buyers were more inclined to rate smart home features as being important.
Technology Only Goes So Far
Interaction with professional, trusted humans is also key. In that same study by the NAR, it is clear that Gen Z values a human connection when it comes time to make important decisions. Even though they will most likely begin their search online, Gen Z believes that it is important to have a professional at their side. Panelists agreed they are much more likely to listen to endorsements and opinions from friends and family than online reviews. There is a recurrent need to be able to trust the source of recommendations, and Gen Z is jaded when it comes to online reviewers. They don’t tend to use Facebook, and many of them have no idea what Yelp is.
What we find as we work with more and more members of Gen Z is that while it’s important to have the technology and availability to capture their attention upfront, in the end, the most valuable asset you can provide is to be an expert in your field, with human interaction to back up the technology.First-Time Homebuyer, Gen Z, Generation Z, millennials