Let’s see what the “smart” people tell us about millennials. Pew Research Center reports the Millennial generation, are those born after 1980 and are the first generation to come of age in the new millennium.This year (2015) millennials are poised to surpass baby boomers as the nation’s largest living population.
You can read more from the Pew Research report on millennials here.
But wait…it gets even better!
According to the 2015 TD Bank Mortgage Service Index, 50% of millennials say they are either “extremely” or “very” likely to buy a house in the next year. (Nice!)
For the second year in a row, millennials represent the biggest group of home buyers in America, 32% of the market, according to a March 2015 report from the National Association of Realtors.
Lawrence Yun, NAR Chief Economist said that over 80 percent of millennial and Gen X buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by millennials for their purchase.
A recent Redfin study found that 38% of millennials have or would delay a wedding or honeymoon in order to buy a home.
Millennials surveyed say they are looking to buy for utility and own for shorter periods of time — “they’re not really focused on buying the house that they’re going to live in forever; they’re looking at their purchases more as an investment than a place to live.
Could that be useful information when presenting loan options? Of course you’re already thinking that aren’t you! There is the issue of millennials struggling with down-payments as they are saddled with an unprecedented amount of student loan debt — about $28,400 per college graduate, on average.
And our friends at the FHA just announced new rules around student loans making it harder on the DTI qualification.
But even with the FHA rules adding yet another hurdle to qualifying, if you’re in the business of doing purchase loans, you need to evaluate your millennial sales and marketing strategy in these areas:
Millennials are a unique group and as with any segment, have different ways they evaluate you and decide to choose you as their mortgage professional.
If we get enough interest back (that’s a comment from you) we’ll share some proven strategies for targeting, attracting and converting millennials.
Would you like more content on winning with millennials?
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