Help younger generations achieve homeownership and grow your business.
Did you know that Millennials, or those born between 1981 and 1996, now make up the largest percentage of prospective homebuyers? In fact, borrowers in this demographic represent a whopping 43% of all buyers!
And Generation Z (Gen Z), or those born between 1997 and 2012, are hot on their heels. Nearly one-third of 25-year-olds (the oldest Gen Z borrowers) owned their own homes last year. That’s a higher percentage than Millennials or Gen Xers at the very same age.
Despite this fact, many potential borrowers in the Millennial and Gen Z generations still worry about achieving homeownership. More than 60% fear they will never be able to afford the things they want in life.
So, whether you’re targeting young people who already own a home and might consider a refinance or those who could be brand new buyers, how exactly does one get in front of this important demographic?
Luckily, there are a few promising (and on-trend) tips you can try. Here’s how to best attract business from Millennial and Gen Z homebuyers:
Prioritize Social Media
Millennials and Gen Zers are considered digitally native, meaning they grew up using and exploring technology. So, it’s no surprise that members of these generations are big on social media today.
To market to them, consider meeting them where they’re already at. You may want active accounts on all the top social media platforms, including:
- 31% of 18-24-year-olds are Facebook users.
- 30% of 25-34-year-olds are Facebook users
- 31% of 18-24-year-olds are Instagram users.
- 31% of 25-34-year-olds are Instagram users
- 67% of 18-19-year-olds are TikTok users.
- 56% of 20-29-year-olds are TikTok users.
- 45% of 30-39-year-olds are TikTok users.
- 42% of 18-29-year-olds are Twitter users.
- 27% of 30-49-year-olds are Twitter users.
In other words, you’ll want to make sure you’re diligently following your company’s most current social media policies.
Make Your Values Known
Millennials and Gen Z consumers are also value-oriented and cause-drive. That means that they’ll be more likely to work with mortgage loan originators (MLOs) who prioritize equity or education over one who’s clearly just trying to line their pockets.
To connect with these demographics, tap into your mission and vision. A few ideas might include:
- Insight or education surrounding the racial homeownership gap.
- A sizable 56% of Millennials and 60% of Gen Zers feel that systemic racism is fairly or very widespread.
- Awareness of and dedication to remedying environmental issues.
- Roughly 71% of Millennials and 67% of Gen Zers view climate and sustainability as a top priority.
- Corporate social responsibility.
- Around 44% of Millennials and 49% of Gen Zers reported making choices about employers and other places of business based on alignment with their own personal values. This includes starting, stopping, or deepening consumer relationships.
- Any other cause you feel personally or professionally drawn to!
Whatever you choose to do, ensure it’s genuine and not just for optics. These consumers will not appreciate performative activism or empty gestures.
Millennials and Gen Zers are pioneers of influencer marketing. In this arena, online influencers create their own close communities, fostering deep connections and a high degree of trust. These influencers are eventually viewed as “experts”, pitching goods and services to their followers.
While you don’t necessarily need to team up with a Kardashian, modern MLOs could certainly benefit from the power of influencer marketing. Micro- (10,000-100,000 followers) or nano-influencers (>10,000 followers) may prove most helpful (unless you have money to spend on a big celebrity or figurehead).
If your company’s policy allows, consider seeking out partnerships with:
- Local real estate agents, who could refer their following directly to you.
- Local family-focused bloggers, who might promote certain neighborhoods you serve.
- Popular local businesses, who may be willing to share your marketing materials.
Tap into your network and get creative. Or, you could always consider taking matters into your own hands and becoming a nice, mrotgate-focused influncer yourself!
Final Thoughts: Marketing to Millennials and Gen Z Homebuyers
Whether fine-tuning your social channels or revisiting your office recycling policy, connecting with younger buyers doesn’t have to be overly complicated. Simply meet them where they’re at, show up authentically, and lean on your community! And when in doubt, maybe a TikTok dance in the office break room?
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