We have previously written about the force that millennials have become in the real estate market. While this is still the case, we also need to begin to acknowledge the impact from Generation Z. Also referred to as “zoomers”, this demographic cohort was born between the mid-1990’s through the early 2010’s. Some even go as far as defining this demographic as those born between 1997 and 2012. Furthermore, this is the demographic cohort succeeding millennials and preceding Generation Alpha. Most commonly, these zoomers are children of Generation X.
Impact on real estate
According to Realtor.com®’s fourth quarter generational propensity report, these tech-savvy adults now own about 2% of the homes on the market. Not surprisingly, zoomers are spending approximately 37% less than what millennials are currently spending and 46.5% less than the $300,000 national median. As of December 2020, zoomers were spending a median price of $106,600 on starter homes. It is important to note that this figure still represents an increase of 11% from what these zoomers were spending on homes the prior year in 2019.
Marketing to Generation Z
Although Generation Z is not a dominant force in real estate yet, this demographic is certainly becoming more of a factor. With time, it is believed that Generation Z is poised to surpass millennials when it comes to spending power.
Overall, most zoomers are looking to purchase homes in suburban markets. In fact, the data shows that many of these buyers have opted to purchase in college towns with good economies. Most often, these are the same towns where they attended college as well.
As for marketing to zoomers, not surprisingly they are all online. In fact, this cohort tends to trust platforms such as Instagram, TikTok, & Snapshot for bite-sized, practical content. Although the importance of online marketing has been here for some time, it is even more pronounced with millennials and zoomers entering the real estate market.
As always, it is important that homeowners and their real estate agents to stay up-to-date on the latest marketing trends for these younger generations. Even if you are not looking to sell your home in the next couple of years, it is quite likely that when the time comes to sell you will need to appeal to these generations. Overall, millennials and zoomers tend to be practical spenders and look for value in their purchases. Furthermore, many of these buyers will likely have a preference for a remote working environment and thus may look for homes that may accommodate this.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!