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Generational Dynamics
Times they are a changing, yes? As if the industry hasn’t experienced enough fundamental change in the form of third party entrants, federal regulation and litigation, and the Internet, we can now add to the dynamic industrial mix the emergence of a new, market dominant consumer serviced by a REALTOR® force one and two generations removed.
According to recent research, the median age of homebuyers last year was just 39 years old, one year younger than the previous year. Additional data reflects that roughly 40% of all homebuyers – or 4 in 10 - are below the age of 35. This demographic data reveals what many who serve on the front lines of the real estate transaction have been observing for the last few yeas: the new real estate consumer belongs to generations quite separate and distinct than those of the REALTORS® serving them, whose average age according the most recent NAR data is 51 years old.
In a generational context, the demographic data reveal that, while the new market dominant consumer belongs to the two youngest generations of Americans [Generations X (ages 29-40) and Y (ages 11-28)], the average REALTOR® serving these consumers belongs the Baby Boomer generation (ages 41-59).
The impact of this generational dynamic is often underestimated, but is in fact critical to brokerages that operate within the paradigm; especially in light of the fact that brokerages depend on the success of relationships between these generations to drive profitability. Without an effective understanding of the generational differences that exist in these relational dynamics, communications, relationships and trust break down as brokerage service efforts “miss the generational mark.”
Through a partnership with national consulting firm Generational Consulting Group, RECON provides real estate brokerages with the generational information, expertise and strategies necessary to ensure that services efforts are generationally focused and on target, and that profitability- driving relationships with consumers are tailor designed to account for the generational values and preferences of the new dominant consumer.
Contact RECON today to explore the tremendous potential of generational programming for your brokerage. Failing to connect with the new market dominant consumer isn’t a luxury any broker can afford. |