Millennials Are Now Real Estate’s Key Players. What Does That Mean for the Industry?
In March of this year, the National Association of Realtors (NAR) released its report on generational trends, an annually anticipated roundup of stats that helps guide and influence industry practitioners.
But this year had a little surprise in store. According to the organization’s study, millennials are now the largest buyers of real estate, comprising 43% of buyers. They’ve overtaken both Gen Xers and Boomers, who’ve traditionally sparred for the top spot year-over-year.
Normally, the announcement would signify the same generational “passing of the torch” that the industry expects every couple of decades. But this time, it’s different. Millennials do not think, act or operate like past generations; they’re highly tech-fluent, information-driven, and principled.
Many industry professionals openly wonder what their dominance might do to – and for – the industry. Let’s take a closer look.
Who Are the Millennials?
Before going to discuss what millennials mean for the industry, it is important to know what millennials are. Words to describe millennials, I need to take help from Investopedia. According to Investopedia, “Millennials are the group of people born from 1981 to 1996, dates recently crystallized by the Pew Research Center after years of vagueness that set them anywhere from 1980 to the early 2000s.”
This generation is also known as ‘generation me’, which implies negative stereotypes, such as that the demographic is selfish, lazy, and spoiled.
Why Do Millennials Mean For The Industry?
This generation is more careful with money. Technology changed everything in the world. Everything is now updated and digitalized. In this case, millennials can understand the digital process.
They want to access cloud-based solutions for handling documents and take appropriate steps accordingly. So that the industry can grow the business in order to meet public demand.
The Tech-Enabled Generation Spurring Digital Change
Perhaps the most noticeable differentiating feature of millennials (certainly the most discussed) is their “tech fluency.” This is a generation of digital natives who grew up alongside, and in partnership with, the internet.
Naturally, millennials are transferring their penchant for digital solutions to their real estate dealings. They want cloud-based solutions for managing documents. They want the ability to sign agreements digitally. They want fast, actionable data on market trends. And they want a straight digital line to real estate listings. So far, the industry appears to be abiding.
The Rise Of The Real Estate Consumer: Choice And Transparency
In the past, the real estate industry had a reputation for being inaccessible. It wasn’t uncommon for real estate agents to hide their commission rates, gatekeep resources, and conceal their sales histories. And the marketplace was anything but meritocratic, as consumers had little recourse for evaluating their options.
That’s a problem for millennials. This generation doesn’t want to be told who to partner with; they want to see and evaluate all their options before making the choice themselves.
These principles have led millennials to use Nobul for their transactions, a disruptive digital marketplace that connects consumers with agents.
“Our platform enables buyers, and sellers to openly see the transaction histories, pricing, reviews, and services of real estate agents,”
Nobul founder Regan McGee tells Superb Crew, “(and) agents can then actively compete for the prospective buyers’ business.”
The tech maverick started Nobul to bring
“choice, accountability, and transparency to an industry that has – for decades – been widely regarded by homebuyers as opaque and challenging.”
And the company has recently seen a significant rise in millennial users.
This Could Have Been An Email
The industry might soon say goodbye to the in-person meeting altogether. According to Investopedia, millennial real estate consumers vastly prefer digital communications to in-person meetings or phone calls.
They like the immediacy and accessibility of reaching their representative via chat. And, as Forbes reports, millennials don’t like the “intimacy” and immediate responsibility of a phone call; they prefer to respond and engage on their own time.
The industry appears to be adapting to this shift. That same Investopedia article reports that 90% of realtors already communicate via text, and 94% use email. However, only 34% of realtors use instant messaging services to communicate with clients. As millennials continue to dominate real estate, you can expect this last figure to rise.
Bottom Line
As millennials reshape the real estate industry in their image, it’s looking like consumers will emerge as the victors. Millennials’ determination for digital solutions, transparency, choice, and streamlined communication should make real estate transactions better for all consumers. And for the professionals savvy enough to adopt these shifts early, the future should be bright.
At the end of this article, you have the knowledge of why millennials means significant in the industry. Hopefully, this article has been able to meet your queries. If you have any more queries, feel free to share them in the comment section.
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