Recently, the Urban Land Institute published a study on Gen Y and Housing in partnership with UDR. The 19-to-36-year-old millennial demographic boasts several defining characteristics (pet-ownership, urban lifestyles, etc.) and is quickly taking the multifamily market by storm.
Criterion.B identified several insights that we felt worthy of highlighting, particularly within the context of marketing and technology use. Let’s take a look:
Meet the Millennials
First, who are the millennials? They’re the buzzed-about generation, and rightfully so with $1.3 trillion in buying power. When comparing them to previous generations, pet ownership and hyper-connectivity emerge as defining characteristics. Millennials increasingly prefer an urban lifestyle (i.e., prime rental locations, public transportation, and smaller units) and are most densely populated in the South.
With a median income of $33,883, millennials are encountering an average rental price of $925 per month. This price point puts many luxury apartment rentals outside the reach of millennials. Many times before, we have discussed this gap between lofty millennial expectations and rapidly increasing rents. (Additionally, Lew Wood of Henry S. Miller recently voiced his concerns at Bisnow’s June multifamily panel.) Yet, financial optimism remains strong among the millennial generation, as 9 of 10 expect to match or exceed their parents’ economic circumstances.
Millennials’ technology use is fast-evolving both consumer marketing and the real estate industry as a whole. Smartphones are no longer a luxury. Rather, they’re an extension of the body. Millennials touch their smartphones 45 times a day for communication, entertainment, and informational purposes.
Social media is a natural forum for millennials to interact with companies, whether that’s voicing a customer service issue or engaging with their favorite brands. Millennial lifestyles and technology habits are causing us to rethink the way we approach brand development, particularly in real estate.
Download the Key to Successful Marketing
The key to a successful marketing campaign is strong content, written to a specific audience. But determining that audience is not always simple.
With our multifamily persona worksheet, you can learn how to develop your own personas that speak to your customer’s needs, and help you align your marketing.