It’s no secret that the “younger generation” including those in Generation Z (13-17) will be a major economic “force” in the near future.
You may not be aware that they have definite opinions about homeownership or if you do, haven’t yet made plans to count them as future prospects.
A recent Better Homes and Gardens Real Estate study revealed this generation of teens ages 13-17 is already considering the future goal of owning a home. For example, four out of five (82 percent) Gen Z teens surveyed indicate that homeownership is the most important factor in achieving the American Dream.
The survey confirmed that 97 percent believe they will own a home. When asked what they’d rather have in the future, 77 percent chose owning a home over owning a business. In fact, 53 percent would be willing to give up social media for a year (tied with doing twice as much homework every night) for the opportunity to purchase a home. This group intends to own their first home by age 28 – three years earlier than the median age of first-time homeowners (according to the National Association of Realtors). In addition, of the 97 percent who believe they will own a home, respondents estimate they’ll pay on average $274,323 for their first purchase.
“We have a clear view of tomorrow through our Millennial consumer research – now it’s time to look at the day after tomorrow,” said Sherry Chris, president and CEO of Better Homes and Gardens Real Estate. “Today’s teens are fiscally literate and realistic when it comes to their future. With such mature insights at such a young age, Gen Z could very well be primed to be the next great generation.”
Obviously this is just one survey and you will want to do some additional research before establishing a Gen Z niche. However, it makes sense to initiate some basic steps so that you will be prepared when these young people are ready to make their first purchase. Here are a few suggestions:
*Stress Your “Customer for Life” Approach. In your customer newsletters and other communications, be sure to emphasize that you welcome the opportunity to help family members with a future purchase. You definitely want your current customers to refer their children to you.
*Hold a “First time Buyer Seminar aimed at young people. You can encourage parents to bring their children.
*Develop a flier/brochure designed for younger buyers. Highlight the importance of saving (for a down payment) and the careful use of credit cards.
*Add a special section on your website for younger adults. It can feature such topics as The Basics of Buying Your First Home, How to Obtain Your Down payment and the ABCs of Your Credit Score.
*Consider adapting some of your social media activity—including Facebook and Twitter—to the younger audience.
By planning now, you’ll be ahead of the competition when this group of young buyers begins looking for help to make their first home purchase.