Just as soon as you’ve gotten your foot in the door with Millennials, there’s another demographic for you to master: Gen Z. While both Millennials and Gen Zs respond similarly to online and marketing stimuli, each generation has a slightly different need in their homes, square footages, desires, and general future plans and outlooks. In general, you likely won’t have to do too much in terms of changing your marketing approach from one generation to the other, but in terms of being successful, there are some things you’ll need to alter.
Breaking through to the Gen Z market isn’t rocket science, but there are some things you’ll need to know and be aware of as you start working with more Gen Z buyers.
Gen Z’s Budget
Unlike Millennials who, according to market research, spend an average of $300,000 on a home, Gen Z buyers are much more likely to purchase homes at ? of that price–somewhere in the neighborhood of about $100,000. Granted, we may expect those numbers to increase over time as research further indicates that only about 2% of all homebuyers are Gen Z.
No matter the case, the current population of Gen Z homebuyers is looking to purchase homes sooner, cheaper, and with little to no downpayment. Gen Z buyers are realizing that there are mortgage solutions as well as available homes that can meet generally smaller budgets without compromising on home quality.
Where Are Gen Z Buyers Going?
Again, according to recent market research, Gen Z buyers are focusing their home purchases within smaller suburban communities where economies are strong, overall economic prospects are positive, and environments (both economic and climatological) are more suited for long-term success. Additionally, many Gen Z buyers are focusing their purchases on medium-sized college towns and cities such as Wichita, Kansas; Baton Rouge, Louisiana; Cincinnati, Ohio; and Oklahoma City.
Naturally, purchasing homes in the $100,000 range in a college town is likely to prove challenging which is why you, as an agent, will need to be flexible and savvy with prospective Gen Z buyers. As demand for smaller homes continues to rise as Baby Boomers, Gen Z, and Millennials battle for starter/downsize homes, being creative with your selling, marketing, and becoming increasingly influential will pay dividends.
Breaking the Marketing Barrier with Gen Z
Marketing to Gen Z, as we’ve already mentioned, won’t change appreciably but it may require you to be more vocal, more influential, and really up your personal branding game. Gen Z buyers are looking increasingly to social media to get homebuying advice, advice on mortgages, and advice handling their personal finances. For this reason, a social media influencer is often the first place Gen Z buyers look when searching for home advice.
In addition to becoming more influential on social media, it’s critical to provide more easily digestible content for both Gen Z and Millennial buyers at large. For the most part, younger buyers are looking to get answers to their questions from short-form media such as quick Facebook or Instagram Videos, Reels, and TikToks. For you, this may mean a foray into uncharged social media territory to better capture the up-and-coming Gen Z Generation.
Things That Won’t Change
One thing that won’t change about Gen Z buyers is the need for a solid financial foundation and funding to purchase a home. Despite the fact that you may need to change your marketing slightly, mortgages aren’t going away with a new generation. In fact, to better prepare your Gen Z buyers, start early by having them get pre-qualified for a mortgage through Tidewater Mortgage Services, Inc.!