Millennials. These 83.1 million individuals born between 1983 and 2000 outnumber baby boomers for the largest generation in the nation, according to the US Census Bureau.
Millennials, who have been blamed for the demise of department stores, banks and even napkins, are leading the way in first-time homebuying. In 2016, the National Association of Realtors revealed that 68 percent of first-time homebuyers belong to the millennial age group. In 2017, 34 percent of all homebuyers were millennials. As this generation ages, marketing to them is more important than ever.
Establish an online presence. Millennials grew up in the online age and go straight to the web to obtain information. Keep your website up-to-date and maintain active social media pages to increase visibility and garner trust. Millennials rely on social media for recommendations—numerous updated posts and positive reviews will convince them to trust you with their business. In addition, make sure your online presence is mobile friendly. Most buyers use their phones to research loan options and originators.
Streamline and master an efficient home loan process. For a group that grew up with on-demand news and instant gratification, millennials prize efficiency and responsiveness throughout their lending process. Utilize an online mortgage application so you can spend more time preparing loan options and increasing the efficiency of the process. Online applications make everything faster and easier, which is ideal for working with the millennial market.
Understand the impact of student loan debt. The Federal Reserve has revealed that the national student loan debt has reached $1.4 trillion, making home ownership feel like a distant dream to millennials overloaded with debt payments. Make sure you provide loan options that fit their financial situations and explain all the benefits of purchasing a home versus continuing to rent.
With 18 to 35-year-olds making up such a large chunk of our population, we can expect millennial homebuying to increase each year. Adapt to the mindset of this generation to achieve success.