Generation Z is growing up and entering the property market. But, like millennials, they have different outlooks on life, and their buying habits reflect this. Also known as the Digital or iGeneration, Gen Z has lived their whole life online. This influences how they do everything — including purchasing their first home. They may be young home buyers, but they know what they want.
They’ve never known a phone that wasn’t smart, and they’ve got an affinity for communicating on digital platforms. As a result, Canadian Realtors who connect with this group can position themselves to capture a new market of tech-savvy, financially conscious buyers.
Below are five ways to market properties to Gen Zers in a way that speaks to them:
#1. Market Your Home as a Fixer-Upper
Born after 1997, Gen Z’s are a lot more cautious with their money than the Millennials born between 1981 and 1996 that came before them. And, since they’re young home buyers, they haven’t had much time to save up nest eggs. This means that they understand how much they can reasonably spend on homes.
They’re also disciplined enough to stick to the budgets they work out and can probably only afford to make down payments of around 5%. In most cases, they’ll have to pay for private mortgage insurance — as is usually required on down payments of less than 20%.
The point here is that Gen Z’s are looking for smaller homes that are not falling apart but will need some work. The place doesn’t have to look perfect but should be marketed to illustrate its potential. Spaces that can be repurposed, such as closets changed to offices, are also big selling points, as this generation loves having flexibility.
Remember, this is the first connected-to-the-Internet-since-birth generation. They’ll look online for design inspiration and often turn to YouTube for tutorials on transforming the spaces they buy. This can be good for sellers since they won’t need to do much work or remodelling.
#2. Consider Amenities
Once again, be mindful of how much this demographic can afford to spend, especially in the wake of skyrocketing prices in the Canadian housing market. As a rule, they prefer to live in the suburbs or more economically rural areas, as this fits their lifestyle expectations.
Young home buyers will also expect home deliveries and other amenities to be available. This is more true than ever before in the wake of the COVID-19 outbreak.
#3. Market to Mobile
Research shows that Gen Z’s attention span is just eight seconds long, and they’re likely to use their smartphones to study or buy properties. So as a seller, you’ve got to think mobile.
Create great shots on Instagram, along with video stories. You’ll be able to gather more data on your clients and get in touch with them as soon as a suitable home becomes available.
The iGeneration doesn’t just tolerate mobile marketing; it expects it. Client reviews are also critical here since Gen Z is likely to trust strangers looking for similar services who have no reason to lie about their experiences.
#4. Prioritize Privacy
As a group that’s always connected, with cybercrime a significant concern these days, it makes sense that the iGeneration is very conscious of data privacy. So by emphasizing your information protection policies, you show that you understand this issue and take it seriously.
Gen Z’s will see that you’re on top of current trends (as opposed to being old-fashioned and out of date, with no clear data protection in place). This means they are likelier to trust you in a buyer-seller relationship — which has always been critical in real estate.
#5. Homes Should be Smart
Artificial Intelligence and machine learning are concepts here to stay and are becoming more commonplace. Technology must be integrated into the property itself; smart homes will soon be the norm.
If properties aren’t already equipped with smart technology, they should be ready to be fitted with devices easily. In addition, forecasters predict that smart home tech will evolve rapidly in the next few years. As a result, hardware and software should be easily upgradeable.
A Long-Term Sales Strategy for Young Home Buyers
The iGeneration is growing fast and will soon become a massive economic force. They’re careful with money, conscious that where they live affects their lifestyle, and they value long-term investment. Plus, they are comfortable with the latest technology and demand excellent service. Cultivate relationships with them now and sell a lot more homes in the years to come.
