BetterBond
The next generation of young homebuyers has entered the market and comprises two groups – Millennials (those born between 1981 and 1996), and Gen-Z (those born between 1997 and 2012). For those of you not interested in math, they’re in their 20s and 30s now. BetterBond has looked at how this group thinks about property, and how best agents can reach them.
“First-time buyers made up at least 60% of BetterBond’s home loan applications over the past year, with buyers ranging in age from 26 (the oldest members of Gen-Z) to 42 (the oldest of the Millennials), generating much of the sales activity in the local residential market,” says Carl Coetzee, CEO of BetterBond. Lightstone property data underscores this by showing that 30-42% of all home buyers in recent months were Millennials.
What they’re looking for, and how they buy
These young generations of buyers view property as a means of building equity. It may take a while to get to a financial position where they can own their own homes – the average age of a first-time buyer who applies through BetterBond for a home loan is currently 37 – but they do see property as a reliable long-term investment. This even though the path to homeownership has not been easy for these two generations. Rising interest rates, youth unemployment, job insecurity, and financial instability are some of the obstacles they face. “One positive, however, is that the oldest members of Gen-Z were able to take advantage of historically low interest rates during the pandemic to become homeowners,” says Coetzee.
When it comes to property, internet connectivity is high on the list of attributes that Millennials and Gen-Z look for in a home – both for entertainment and so that they can work from home. “Homes with sustainable features and alternate power sources, like solar, are also highly sought after. Interestingly, they are finding creative solutions to funding their property purchases, by opting for ‘house hacks’ where they buy a property and then rent it out in part, to help pay for it,’ adds Coetzee.
Get Noticed! Marketing to this generation
Gen-Z is the first fully digital generation, and along with Millennials, they are accustomed to doing everything online – from shopping and banking to education, socialising, and dating. “They want 24/7 access to online processes that make applications and payments easier and quicker. This includes their bond applications,” says Coetzee.
Considering their love of, and reliance on technology it is not surprising that neither Millennials nor Gen-Z likes phone calls. They want fully digital processes–forms, applications, submissions, payments – and if yours is not, you will be largely invisible to them. Added to this, BetterBond research shows that email or online marketing won’t get you much further – if it’s not on social media, these buyers are unlikely to notice it.
Unsurprisingly, this group does their research online, and they put stock in customer reviews and testimonials, so agents looking to market their services and stock to Millennials and Gen-Z need to make use of these, on both their websites and social media.
Read more about marketing to this target audience, and how to do it in our articles Beefing up your marketing strategy – Don’t forget about Gen Z and Can you sell houses on TikTok?
