Are you maximizing your marketing to the powerhouse demographic responsible for the wave of first time homebuyers? According to early examination of the Urban Land Institute Survey, most first time homebuyers are members of the “Echo-Boom” generation also referred to as Millennials or Gen Y.
Generation Y is made up of 18-32 year olds and is actually larger than the post war Baby Boom generation. In fact, they make up 25% of the total population at 77.4 million individuals across the United States.
Additionally, this generation is responsible for 50% of first time home purchases from July 2009-June 2010. If that’s not surprising enough, 15% of the 18-24 age group already owned homes!
Here’s another little known fact about GenY…most of them do not want to live in an urban center. Approximately 33% label themselves “city people,” another third prefer the burbs, and the remaining third self-identifies as “small town people” or “country folk.” Therefore, 66% of the current wave of potential first time homebuyers expect to reside outside “big city limits” and would prefer to return to where they grew up.
“Once housing begins to recover, GenY will drive housing development patterns. These people deserve more attention than they are getting,” says Patrick Phillips, ULI chief executive officer. “Real Estate professionals should continue to market to this generation specifically. “
Currently, 53% of the 18-24 sub group expect to be home owners within the next 5 years. The percentage balloons to 73% for those 25-29, and 78% for those 30 or older expect to buy.
Are you targeting this age group as potential home buyers?