This is the 21st Century. Gone are the labourage days and the days where it takes a week to get any type of response to a request. This was what the Baby Boomers and some of the Generation X people went through. This is the communication age. This is the era where we have social networking sites, instant messaging, text messaging, video calling, email, online shops, online forums where you can get any question you ever have answered. This is the time when you want to know something you go to the internet and find it out.
Have you ever asked someone something and the answer you received was “Just GOOGLE it”. Well that’s the sign of the times. www.google.com and the other many search engines and all the things I mentioned above have revolutionised how we interact with other people and get the information we want to know.
Who is the powerhouse for this revolution. We are known as Generation Y or the “Connexity Kids”
Generation Y encompasses those a very large number of people born between 1980 and to 2000 and some experts saying even till today and represents the first generation to grow up online.
To be able to market effectively to generation Y you need to understand their needs and wants. This generation has been bought up online. And as I said before has had the luxuries of being able to get almost anything they want instantly online.And every other generation using the internet has this luxury as well, but the difference being generation Y don’t know any different and expect and demand it.
But not all our life is lived on the internet. But below I have 4 key points that you will need to know when you think about Generation Y.
- The defining value of this generation is “connexity”: the importance of staying connected in order to grow. Digital media ha ve given youth unprecedented means to connect with each other and the world. As a result, for brands to succeed tomorrow, they must forge connections with consumers that go beyond simple product func tion. There needs to be something for them in it.
- Knowledge is power. It is also cool. Digital media have made knowledge cool through a fusion of fun and learning. This means for us in real estate that as an agent or a home owner you need to know the information the buyer may ask or know exactly where to direct them to be able to get it.
- Generation Y is a confident, self-reliant, optimistic and positive generation. The Internet, personal computers and C D-ROMs represent tools that have empowered this generation. As a result, these consumers are marketing savvy and much less brand loyal. They will go for what gives them the best in their situation.
- Digital media has produced a new language. This new generation of online users is verbally and visually more sophisticated. In fact, verbal and visual literacy have converged, creating a whole new language which tomorrow’s marketers must learn. You need to describe your home on the advertising in a way that makes your home seem modern fresh and something that will appeal to a Gen Y
Generation Y generally want an answer now and want it with the least amount of effort possible. They also want results quickly. Say if a gen Y sets up a business they expect results to happen fast and are very critical if it doesn’t happen. The catch is gen Y don’t want to do as much work as previous generations but prefer to work smarter. Gen Y is under a lot of pressure to achieve and excel which sort of explains why they expect results fast.
Now to put this into perspective:
As an agent:
We need to know the lingo. Marketing isn’t just a case of putting an ad out there, leaving it on the websites and then hoping to get hits and hoping even more the people that are hitting it want to ask a question. A generation Y person is used to social media platforms where they interact with the people and the things they are looking at. This is where smarted advertising is needed. Emphasis on the points that benefit the buyer are very important and also photos. But even better are interactive home tours. In the United states there are software companies developing software where a buyer is like an avatar and can walk anywhere they want to in the house as if they were there by themselves and then there is an option where they can ask the agent a question while they are there which is sent to the agent as a text message and the agent can then reply to the question instantly. This real time conversation like approach to marketing is what is needed to engage the new audience and get the best results from them. Some experts say that a reduction in traditional print media advertising and a shift toward media more commonly frequented by Gen X’ers and Gen Y’ers is going to be needed with inclusion in weekly publications, more electronic billboards, regular radio spots and more online advertising on websites that offer a large range of products all over (like a one stop shop concept).
As a home buyer:
Your home needs to have modern aspects to it and be in a decent state of repair. Not just for generation Y but this trend has evolved as generation Y’s influence has started to spread to everyday life. They don’t really want to do any work to the house. The simple things like having a dishwasher, internal access garages, automatic garage doors, automatic heating etc are big things that can woo the generation to buying yours rather the one next door. The theme that runs through this entire blog is convenience. Don’t get me wrong that anyone will buy anything at the right price. But convenience is a big part of today’s lifestyle. And if you can as a seller prepare your home before the market to be more convenient and easy to live in this will have a better reward later down the track.
Deon Swiggs
Property Profits
August 12 2008 | Sellers and The Market | 14 Comments »
Now to follow on in this series so far with talking on the Baby Boomers and then Generation X now I want to talk about generation Y. Born between 1980 and 1999 Generation Y are now entering the workforce and stamping their personality all over it. Generation Y represents about 20 – 30% of the total world population. This is the generation that will dominate in the next 2 decades unlike their parents the Generation X who didn’t get to have any major presence Generation Y will change the way the world communicates.
People of this generation develop a strong need for independence at an early age which has been driven by the fact that many come from single parent families. They are also shaping up as the highest achievers of any generation we’ve seen so far and represent enormous market potential for those in the housing, retail and entertainment development industry who understand their needs and desires. They tend to buy disposable items rather than those that can be repaired.
So how will they influence the real estate industry? To fully appreciate that, we have to look at the common traits of a Generation Y person. The Gen Y’s are consumed by entertainment, technology. They are ambitious, hardworking, accomplished multi-taskers, highly transitional and very open to sexuality and race. This means that a generation Y buyer will not be as fussy as a Generation X and when seeing what they want act on it faster. But they want more and they want it faster.
The housing needs of Generation Y are proving to be far different than those of their parents. Unlike many baby boomers, who tended to marry and have children in their 20’s, Gen Y’s generally want to postpone marriage and parenthood far longer than their parents. Because their social interaction focuses on night life, rather than entertaining at home, they are satisfied with small housing units or houses on small easy care blocks of land.
The type of property this generation like is easy care and has nice glass and metal features, aluminium joinery, bold colours, lofts, lots of light, and open floor plans are very popular. High-speed Internet access is critical. They also like living close to work, recreation, shopping and entertainment. Convenience is the key for this generation.
Since Generation Y’s are the most sophisticated media generation ever, creating their own web sites and making their own CDs and DVDs, real estate agents need to ensure they’re proficient in the use of developing technologies.
Generation Y are tomorrow’s home buyers. Real estate professionals who realise this and do not rely on the same communication channels used to reach their parents will be the winners.
Marketing concepts for this generations is to put the ads out there and let them stumble across them. If they feel pressured, they immediately back away. Internet and email marketing are critical to reaching this group. They are “always connected” to the Internet in one form or another. Over 95% use websites for their real estate search.
I am a person of this generation and I could go on forever about how people of this generation like to be marketed to, (I will write a new post on it) but I want to give a few tips here.
1. Let them have control. They want control and have the power to get it. The internet has not only allowed the tech savvy to gather a mountain of information without the salesperson but it has allowed them to do it with anonymity.
2. Respect their privacy. Explain that their privacy will be respected and then do nothing to abuse this promise, we are very aware of spamming and marketing calls these days.
3. Give them space. 95% of online enquires are ‘soft’ and for information only. Be prepared to nurture the relationship for long term results. This just means that talking to people of this generation without the assumption of getting anything from it will work more than pressuring.
In short generation Y is the next wave of home buyers. As their grandparents enter retirement the people who fill their gap will be this age group. Generation Y people like to do things at their own pace, which is quite often fast. But don’t like pressure. They like to have things done their way and expect others to do it their way. This generation are probably not going to be as fussy as previous generations in terms of real estate as they are very diverse with acceptance. But properties that display the characteristics mentioned above will be more entertained.
This generation is very motivated and ambitious. They have the financial backing of both their parents and grandparents which show in the average age of a gen Y person owning a home is 27. I think that the market will become very exciting with more and more gen Y buyers coming to the market. As an agent I will have to keep up with ever changing media that we can advertise and market on. But being of this generation I have a slight advantage of being in the material as well.
I will do a blog post soon on marketing to People of Generation Y and list a whole host of social media that people use including gotaccess which will be released on Friday. A revolution to how we can possibly run our business and for people to gather information.
Deon Swiggs
Property Profits
August 04 2008 | The Market and Uncategorized | 4 Comments »
Generation X were the babies born between 1965 and about 1980, the Generation X group is much less concerned with formality and impressing others than previous generations. Instead, group members prefer living wherever, whenever and however they want. Generation X people are now between the ages or late 20’s and the mid to late 40’s
Just as the Baby Boomer generation has its characteristics, so does the “Generation X” first-time and move-up homebuyers. The Gen Xers are children of wealth, privilege, and instant gratification. Very few have been to war. Nevertheless, they are also the products of the highest divorce rate in history.
So whats different with generation X:
- Half of the Gen X group already owns their own homes, and although most don’t live alone, they are not necessarily married to the person with whom they share living space.
- This group can be a study in contradictions; admitting that they would sacrifice for home ownership by brown-bagging and eating out less frequently, but preferring plenty of restaurants nearby.
- Although they value family, they would much rather use a third or fourth bedroom for a home office than for more sleeping space.
- Formal living and dining rooms don’t make sense to Gen Xers.
- Highest on their list of priorities are abundant counter space in their kitchens, lots of storage and closet space, good energy efficiency (with passive solar designs), high-speed Web access, and a large yard.
When people of generation X go house hunting this group tend to look for things out of their price range and then settle for something less. Then a few years later attempt to upgrade again to a bigger or better house. This generation is a motivated consumer, experiencing homeownership at younger ages than even their Boomer parents did.
Gen X’ers likely buy homes earlier because they have a higher proportion of two-income households. Many of these homebuyers become homeowners shortly upon finishing their educations. Further research reveals that Gen X often get a jump-start from their better-heeled parents. So what we will be seeing is an influx of parental assisted housing purchases.
I have done a lot of reading regarding the Generation X people and when it comes to selling them something you’ve got to be straight with them. They are the most media-savvy generation in history. People of this age group do not like being sold!
Gen X is the first generation to regard use of computers as casually as the telephone or refrigerator, Gen X members use the Web for the flexibility it offers; the freedom from having to make appointments, as a way to avoid sitting through endless meetings in stuffy conference rooms, and for the ability to make better use of their limited free time.
As to housing preferences, they want that freedom as well. No room will go unused, but they will not permit homebuilders to pre-determine their needs.
I always say that Generation X is the generation that reads from the menu. What I mean by that is that I believe the people of this generation like to have choices. They like to have the choice to make sure that they are getting the best deal and that they are getting thing that suits them the best.
Now in terms of Real Estate I believe that the people from this generation like to look around for much longer than their parents for a home. Meaning that each person may be in the market looking for some time looking for that perfect house for a number of months. And when they sell Gen Xérs will most likely interview 2, 3 or even 4 agents before they make the decision as to who they will use. In short Gen Xérs are maximizes they want the most for their time, money and experience, as well as the space in their homes.
To sum up people of the generation X age are now the wave of new buyers and sellers in the market. Unlike their parents who are generally holding onto the top portion of the market this generation has the families and the larger homes. They are also having most of the new homes built sculpturing our contemporary style of homes. They want to use all the space the space they can. Having separate living areas is not of any use as this to a Gen Xér a waste of space. The typical house these people like is a 3 or 4 bedroom, open plan house with a double internal access garage.
Generation Y is again completely different. I will go into this more in the next post. But Generation Y is in my opinion the next big Real Estate Revolution to hit. New ways of marketing and new ways of looking at life. This is my generation so lets see what my research comes up with. Will be very interesting.
Deon Swiggs
Property Profits
August 03 2008 | The Market and Uncategorized | 4 Comments »
New Zealand has got an aging population. Why? Well because of the Baby Boomers.
Baby Boomers are of people born in the ages of 1946 (just after WW2) to 1964. Over one million babies were born at a rate of about one hundred thousand per year, when New Zealand’s population was just 2.5 million. This boom has moved through society and has had a very significant impact at every stage. Today the ‘boomers generation makes up one quarter of New Zealand’s population and the bulge has not levelled out.
Today baby boomers having completed their own family cycle with the expensive years of bringing up children behind them, are mostly at the peak of their earning years often with both partners still working. But unlike their own parents, this group has lashed out lavishly on personal consumption. Not for them the discipline of saving and going without as a run up to their own retirement. These people have done the exact opposite to their parents and have built huge new homes for themselves, have purchased other holiday property, lifestyle blocks or apartments and have filled their garages with all sorts of toys like 4×4 trucks, boats, Harley Davidson’s and classic cars to name just a few.
Predictably, as the ‘boomers built or bought their dream homes, these properties skyrocketed in value. With a million ‘boomers all buying property at roughly the same time, it was no wonder that prices escalated.
Here are some facts about baby boomers and their real estate trends as we know it today.
Ninety-six percent of all boomers believe that owning a home is a very smart financial investment, and nearly 4 out of 5 now own homes, while 1 in 4 boomers owns other forms of real estate besides a primary home. These include one or more vacation or seasonal retreats, acreage or income-earning property.
Home equity plays a huge role in boomers’ financial planning and well-being.
Home equity represents a significant percentage of total household net worth for most boomers. Thirty-six percent of 50-year-old to 60-year old homeowners report that the equity in their primary residences is 51 percent to 100 percent of their household net worth. Thirty-eight percent of boomers between 42 and 49 report the same.
In terms of today and looking toward the future the trouble is there are very few ‘families’ coming along behind them. As most of the baby boomers were born in the 1950’s, during that time everyone who could have children had children. This meant that in the 1960’s there was a 10 year gap in babies been born, during this time very few new babies were born. This gap is still there today. For real estate does this mean the demand for houses that the baby boomers don’t need any longer is going to drop off dramatically.
So as the baby boomers start to retire from their big family homes, farms and lifestyle blocks there possibly will naturally be a large decline in this market, but where do they go from there? Maybe this is the foresight to the next real estate market niche to boom.
The next generation (Gen-X born 1964 – 1980, essentially the children of the baby Boomers) and their much smaller families are not only significantly smaller in number but they have a completely different criteria for their housing needs. Another interesting fact I read was that only 18% of New Zealand’s population now live in a ‘nuclear family unit’ with Mum & Dad and their children living under the same roof. Society has changed dramatically. But I will Talk about Generation X my next post on the generations. So keep watching.
Deon Swiggs
Property Profits
July 31 2008 | The Market and Uncategorized | 7 Comments »
