Are you a real estate professional looking to engage more Millennial and Gen Z buyers?
This would be smart as Millennials and Gen Z are now the largest groups looking to buy homes, with Millennials alone accounting for 38% of the home buyer market.
But Millennials and Gen Z are significantly different from preceding generations in their consumption behavior.
As Brooke Webber, Head of Marketing at Ninja Patches, explains, sellers must develop targeted marketing strategies for reaching Millennials and Gen Z.
She said, “Millennials and Gen Z will be your primary target market if you want to sell products and services, or even homes. But, as you may have noticed, these two generations behave very differently from previous generations. They rely on technology, value sustainability, and expect a digital-first experience when searching for and purchasing things. A traditional marketing approach will not be enough to capture their attention.”
In this article, we will share what will!
Understanding Millennial and Gen Z Homebuyers
Engaging with Millennial and Gen Z buyers will require a fair deal of thinking outside of the box.
This is a point Adrian Iorga, Founder & President at 617 Boston Movers, emphasizes, saying, “You can’t approach Millennials and Gen Z the same way you would have older generations. Today’s buyers are highly technologically savvy and highly ideologically driven. To reach this crowd, you have to keep up with the times.”
So, what exactly drives the buying behavior of millennials and Gen Z? Some of the most important factors include:
1. Affordability
Millennials and Gen Z often face significant financial challenges, such as student debt and rising housing costs. So, while most still aspire to homeownership, they may hesitate to commit to it.
For instance, the New York Times reports that Gen Z is saving more than any other generation. This may partly explain why they are not buying homes as much as previous generations did at comparable ages. Similarly, many Millennials aren’t buying homes largely due to tremendous amounts of student loan debt.
To engage with today’s home buyer, you must understand how these financial constraints affect their buying behavior.
For instance, modern home buyers may be more inclined to explore homeownership models like co-buying and may be more open to buying smaller homes.
2. Investment Potential
Just like previous generations, Millennials and Gen Z view investing in real estate to build wealth.
However, partly due to the financial constraints mentioned above, they are often more cautious and may take longer to commit to a purchase.
When they eventually do, they tend to look for opportunities that offer reliable, predictable returns with long-term value rather than quick flips.
3. Sustainability
One Statista report shows that 80% of Millennials and 66% of Gen Z consider sustainability when making buying decisions. Things like energy efficiency are extremely important to them.
However, given that they typically face financial constraints, the extent to which they may be willing to invest in eco-friendly features can vary depending on their budget and individual priorities.
4. Location Trends
Housing costs are skyrocketing in major urban centers across the US. Millennials and Gen Z are reacting to this by seeking homes in suburban areas and secondary cities as these options are more affordable.
Additionally, with remote work becoming increasingly common, many Millennials and Gen Z feel less pressured to get homes closer to major urban centers.
5. Tech-Driven Search
Millennials and Gen Z are more likely to use technology to search for homes than previous generations.
They are highly likely to look for homes on social media, with platforms like Instagram, TikTok, and even Facebook being increasingly used for discovering potential homes and neighborhoods.
Millennials and Gen Z are also generally comfortable with modern real estate technology like virtual tours and AI-driven listings.
Marketing Real Estate to Millennials and Gen Z: A Digital-First Approach
Now that you understand Millennials and Gen Z a little better, the big question is: How do you engage with them effectively? First, keep in mind that while these two generations have so much in common, they also differ in some ways.
As Jesse Hanson, Content Manager at Online Solitaire & World of Card Games, explains, ”Millennials generally came of age during the dawn of the internet. They are experiencing its initial promise and subsequent economic fluctuations. These experiences have shaped their values and how they approach financial decisions.”
“Gen Z, on the other hand, are truly at home in the digital world.” He adds, “They have never known a world without the internet and social media, which profoundly influences their communication, consumption, and financial habits. They’ve also become accustomed to a great deal of economic uncertainty, as they’ve grown up during the great recession and the covid 19 pandemic.”
With the similarities and differences between Millennials and Gen Z in mind, here are some proven tips for engaging both generations:
1. Use Social Media
Social media can be a fantastic way to connect with Millennial and Gen Z home buyers. As mentioned, both groups are heavy internet users.
Millennials tend to gravitate towards platforms like Facebook, Instagram, and Twitter and often seek in-depth information and membership in online communities.
Gen Zs, on the other hand, more commonly dominate TikTok, Snapchat, and YouTube, which reflects their preference for short-form, visually engaging content.
As for content, Millennials are responsive to informative content that demonstrates value and benefits. They appreciate data, testimonials, and clear explanations of how their pain points are being addressed.
With Gen Z, you may prioritize demonstrating authenticity, humor, and social consciousness as they are drawn to brands that align with their values and genuinely engage them.
2. Embrace Interactive Real Estate
Interactive real estate marketing tactics, such as 360-degree virtual tours, interactive 3D walkthroughs, and high-resolution imaging, are excellent ways to offer value to Millennials and Gen Z.
These technological advancements allow potential buyers to explore properties remotely, saving time and increasing engagement.
3. Email Marketing
Customer email marketing is another important marketing tactic for reaching modern audiences. According to a Litmus report, on average, email marketing provides an incredible ROI of $36 for every dollar spent.
Email marketing is also one of the best ways to reach Millennials and Gen Z, given that these generations are heavily reliant on email for work, job applications, and other personal communication, subscriptions, and so on.
4. Responsive Customer Care
Millennials and Gen Z buyers have grown up with instant communication, and they expect quick responses to customer service queries.
Investing in building and maintaining an in-house customer support team can be costly, so many real estate agencies do not bother.
But instead of foregoing the numerous benefits of providing timely, helpful customer service, you can consider using a white-label customer support service. This will help ensure that you are able to offer professional, round-the-clock customer service while keeping your brand front and center, all at a relatively low cost.
Final Word
Millennials and Gen Z are now the largest chunk of homebuyers. These two generations have a lot in common but may also behave differently in certain ways. For the best results in your real estate market, be sure to apply the tips we shared in this article.
We’d also recommend reading our guide to real estate marketing ideas for more clever marketing tips.
