Surveys continue to show that millennials continue to delay homeownership. Millennials, born between 1980-1993, represent that largest generational age segment in the country. This is even larger than the Baby Boomers cohort.
Even though members of the millennial demographic are approaching their peak home buying years, sales of entry level homes are falling. The number of Americans under 35 who owned a home last year dropped to 36%, the lowest level on record.
Research indicates that many millennials are concerned about their jobs. They are putting off home buying until they are more established in their careers. Many don’t want to buy a home because they may relocate for work plus millennials are more likely to be unemployed than any other age group.
But, this group is crucial in the housing recovery. According to the NY Times, the number of millennial households in their 30s is expected to increase by 2.7 million over the coming decade, boosting demand for new and existing homes.
Jed Kolko, chief economist for Trulia says “The millennials will have a huge impact on the housing market”. Surveys show that more than 90% of millennial renters say they will eventually buy.
Millennials Value Direct Mail
So, how can the Real Estate market take advantage of this? Direct Mail.
Just look at these statistics!
- 75% of Millennials find that the mail they receive is valuable
- 92% are influenced by direct mail to make purchase decision as opposed to 78% influenced by email.
- When asked about whether or not they would prefer to continue receiving promotional emails or receiving the same promotional items but in the mail, 70% said email or other digital delivery and a whopping 90% said they would prefer postal delivery.
I know there are great creative minds out there who can design a campaign to target these First Time Home Buyers. I also know that there is a very fine mailing list that absolutely targets this market segment – we call it the Enhanced First Time Home Buyer List.
Marketers who want to make an impact selling homes to millennials need to mail to this First Time Home Buyer group with a strong offer that includes a great kitchen, a place for a 65” flat screen and ingenious financing options.
Millennials are just waiting for the right time and the right offer!