Generational Traits

We have six major age groups, all of which can become potential clients for us. The generation we were born in affects the way we think, react, evaluate and buy. But we need to be prepared to work with people from any generation.

 The Senior, Mature, Veterans or Silent Generation were born between 1925 and 1945, now age 81 or older and are 2% of the population. They are considered to be team players, who trust government, authority and community. High achievers, but not reckless, who value stability and were known for saving money. They lived through tough and frightening times, depression and world wars.

Seniors today are focused on retirement and downsizing. They may consider doing a 1031 Tax Differed Exchange on investment properties they own. They do represent 5.5% of shoppers. Working with them should be through personal contact and any presentations should be printed out.

 Baby Boomers are ages 62 to 80, born from 1946 to 1964, representing 12.1% of the population. They were once the largest generation, who grew up watching major cultural events and experience the Vietnam war either as a soldier or protesting on college campuses. Their parents and times provided them with unprecedented opportunities in education and employment.

 Boomers live to work and many are quite wealthy. The older boomers (ages 72 -80) were the “me” generation, who felt entitled to the “good life”. Their current focus is to be near family; they are retired or planning to be. Younger boomers (ages 62 -71) embraced a more conservative behavior. Their challenge is with family, older children and parents moving in with them. Both groups first want to do things by themselves, even buying or selling real estate. But when not successful they want a seasoned professional to help them.  They represent 20.8% of all shoppers, with many buying investment properties or doing exchanges. They like people and conversation, presentations are best in person, but if made by video or text follow up with a phone call. They also are the largest group of property sellers today.

 Generation X were born between 1965 to 1980, ages 46 to 61, who are 18.3% of today’s population. They are practical. self-reliant, independent people who do things their own way. Growing up they were known as “latch key kids” as both their parents worked. They were told when they got home to lock the doors and not let anyone in, trained not to trust anyone. Coming of age in the 80’s and 90’s with the fall of the Berlin wall, the Persian Gulf war and recessions. First using computers to view video games, then growing with that industry.

 They mistrust institutions and traditional values, reject “rules” and don’t expect to collect social security. Working to live they put a premium on family time. Currently they have the highest household incomes, allowing them to make investments. As children, with parents working, they made decisions with friends and consulted these same friends today when making major decisions. They have diversified portfolios, seeing real estate as their means to afford retirement. Considered the largest group of buyers, dominating 23.5% of overall spending power. They too are dealing with older children and parents moving in with them and consequently buy larger homes.

 Millennials, Echo-Boomers or Generation Y born between 1981 to 1996 are also divided into two groups, older ages 34 t0 45 and younger ages 30 to 33, in total representing 22.9% of the population. They were nurtured by their parents providing busy schedules of education and activities, as a result they became driven by accomplishment. Realistic, self-inventive, digital pioneers, who value flexibility, innovation and social responsibility. As children they grew up using the internet and have had smart phones since childhood.

 Having observed their parents and grandparents grapple with change: to them change is normal. Hard working, but an employer’s nightmare, they will move immediately for a better paying job. They are smart workers, goal oriented and highly motivated. However, they want to live close to where they work, being able to walk, bike or have a very short commute. Millennials are tech savvy, initial communication with them will be by e-mail or text, send presentations to them the same way, they are technology driven investors. Their focus is on convenience and value, representing 22.5% of buying power, primarily on the internet.

 Millennials are focused on buying investment properties that are wi-fi enabled, using digital platforms to find them and purchasing by crowdfunding.

 Gen Z, iGen or the Innovative Generation are ages 16 – 29, born in 1997 to 2011and are the largest population 24.6%. This group are “Digital Natives” technological experts. Very diversified, tolerant of other cultures, sextual orientation and race. They are realistic instead of optimistic; highly connected, ambitious and socially conscious. But they are also cautious and take less risks. They stay up late (2:00 AM +) using their smartphone, social media and gaming, consequently, they have less “in person” contacts.

 iGen has watched their older brothers and sisters graduate from college and not be able to get a good paying job. Learning from that, their education is focused on developing practical skills, many looking into going to the high paying trade jobs like electricians, plumbers, carpenters, or into high tech related fields. They would prefer to be an entrepreneur rather than an employee. Real estate ownership is one of their main goals, over 100,000 in this younger group already own the house they live in; representing 17.1% of buying power. You will not find them. They will find you through your advertising, social media postings and your web sites.

 Gen Z are buying investment properties focused on sustainability and technology integrated environments; financing using co-buying structures.

 Both younger generations are buying devalued office buildings, considering them to be “once in a lifetime” opportunities.

 Gen Alpha or the Recession Generation are ages 1 to 15, born between 2012 to 2025, are 19.5% of the population. These are children of Millennials, being educated by AI, influenced by social and screen technology, and remote connectivity from birth. This group accounts for 10.6% of products purchased.

 Statistics from a report by the National Association of Realtors on home buying:

 Baby Boomers (42%) Lead the market, with roughly half of older boomers and two-fifths of younger boomers purchasing a home withcash, enabling them to bypass high mortgage rates. They are also the largest group of sellers (53%), primarily to move closer to friends or family, downsizing to smaller homes or retiring. Plus, they are the dominant force in purchasing investment properties.

 Millennials (29%) Previously the largest buying group, they now make up a smaller share due to inventory shortages, high prices and affordability challenges.

 Generation X (24%) Often act as the “sandwich generation” frequently purchasing multigenerational homes to house both children and aging parents.

 Generation Z (4%) A small but growing segment of buyers, often purchasing with significant help from family. Gen Z buyers are increasing looking for smaller, affordable homes for investment potential.

 As you can see each generation is different, but all represent opportunities for our real estate businesses.