Millennials and the American Dream- Chad Blessinger June 2017 |
An article for those in the business of real estateHome ownershipThe American Dream- that short phrase can elicit a variety of thoughts and feelings. It reminds me of generations past and the idea that given freedom and opportunity, hardworking Americans can have a better life than his or her parents. Upward social mobility through personal effort and thrift has been an American ideal since her founding. A substantial piece of this dream has traditionally been home ownership (envision manicured green grass, white picket fence…). But some feel the American Dream has gone away or changed. Locally, I have heard from several people that home ownership is just not as important to young people. The “local wisdom” says younger generations don’t want to mess with a yard and upkeep. I have been told they would prefer to rent a low maintenance loft or apartment near restaurants and other amenities. While certainly true for some, this is only part of the story. Home ownership is still a big part of the American Dream.Media outlets and studies across the USA and Canada show home ownership as a priority to over 80% of millennials. Millennials (I use the range of 19 to 34 year olds) are renting and living with their parents at higher rates than previous generations, but home ownership is still important to them. A study by a leading real estate site, Zillow, actually showed millennials as more eager to own than older generations. They want to buy their own home, see ownership as a smart financial move, and believe owning a home is necessary to being a respected member of society. The difference is they are waiting longer to get the process started. Why is this important to us as real estate and bank professionals?The National Association of Realtors projects there will be 22 million millennial households in 2018. This is a major buying block and they are our current and future customers. This is a population segment we need to pay attention to and adapt our businesses to serve. How do Realtors and lenders help millennials attain the American Dream?We have to serve them where they are in a manner comfortable to them. Much of the following has been true for years but it is worth repeating. Surveys show the internet is the most widely used source by millennials during the initial home search process. Millennials, and much of the rest of society, are spending hours shopping for homes on digital devices before ever looking in person. While photos are nice, video can really help a potential buyer envision their future home. If we provide our customers with something of value, they are much more likely to work with us. This is the theory of reciprocity in action. We can reach out via social media.Infodocket.com reports twenty percent of all page views in the United States are on Facebook (over 1/3 of Facebook users are millennials). This is a huge market and if used well, could have huge returns. Again, are we providing something of value to our customers? Is a formal head shot and short bio on us really that valuable to our customers? Instead, let’s give them the tools, information, and media they need to make a choice that best fits them. Let’s keep the focus on them. I am happy to be in an industry that helps people reach their goal of home ownership. Let’s keep the American Dream alive. Springs Valley looks forward to working with our Realtor friends to make this dream a reality. Chad Blessinger
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