The media loves to promote the idea that our millennial generation is so saddled with student debt that they need bailouts from the American taxpayer.
Thank you for reading this post, don't forget to subscribe!Guess what? That’s hogwash.
In fact, according to an Experian survey of student loan debt, Gen X and Baby Boomers each have more student debt than Millennials.
Just under half of Millennials (42 percent) claim they’ve never been denied credit, according to a separate Experian survey. The Boston Globe’s Beth Akers claims that “… 66 percent of millennials have no student loans,” is most surprising.
More important, at least for real estate agents targeting millennial homebuyers, there are more than half a million millionaires in the millennial generation, and “… 93% of them have a net worth of $1 to $2.49 million,” According to Mark Politi on LinkedIn.com, citing Coldwell Banker research.
Recent Engel and Volkers Trend Report surveys suggest that many people have overstated net worths. Nearly 60% of Americans looking to buy a home for more than $3 million dollars (so-called “peak luxury buyers”) are members of the millennial generation.
The number of young millionaires will explode over the next few decades with baby boomer inheritance wealth transfers. And according to the Coldwell Banker Global Luxury study, they’ll be shopping for more expensive homes.
How can you position yourself to be the go-to agent for this cohort?
Build your niche on social media
Yes, it takes time, but engaging with others on social media is key to attracting these luxury homebuyers. Remember, the Millennial generation was our first generation to grow up online.
However, not every social media platform is right for real estate agents. Keep your target market in mind when deciding where to market. For example, millennials, born between 1977 and 1995, are between the ages of 28 and 46 in 2023.
Older 40+ millennials are the wealthiest, with the top 1% net worth around $8 million. The top 1% of those aged 35 to 39 are worth more than $4 million. According to Levi Rasmussen at WallStreetSurvivor.com, the top 1 percent of the youngest group makes about $600,000.
These statistics should help when choosing which platform to use. Check its demographics to make sure it appeals to your target audience.
According to Rumble Romagnoli with Relevance, a “… luxury digital marketing agency”, “There is a frequent misconception among luxury brands and marketers that digital marketing is incompatible with the luxury industry.”
People believe that UHNWIs [Ultra-High-Net-Worth Individuals] Don’t engage in social media, shop online, etc., or if they do, do it only through super-exclusive social media sites or private members clubs. Not at all,” he concluded.
LinkedIn and Facebook are two of the best social media platforms an agent can use to target this audience. You might also consider Instagram ads, suggests Romagnoli.
Focus on emphasizing your expertise in both the luxury market and the local real estate market in general.
Erin Nicole Davis, citing an Engel & Volkers luxury homebuyer trends report, says that “… real estate professionals who provide a personalized, high-touch experience when dealing with these buyers” will be winners.
Bonus: You may end up rolling in referrals!
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