Demographics, Home Size, CRM: Who's Buying the Biggest Homes?

Today's new home marketplace can be thought of as a made up of a series of age-related buyer segments : boomers, millennials and Generation X'ers to name the most recognized.

Millennials are largest segment; Gen X'ers are buying largest homes!

Millennials are re-visiting previously developed home preferences, says Clare Trapasso in a recent Realtor.com article, as they're leaving the "fantasy, pace and possibilities" of big-city living and moving out to the suburbs.

Yes, the "burbs", and that's just the first of a series of major changes being noticed in the new home marketplace.

Another is the changing relationship between buyer demographic groups and home size. Today, Gen X'ers (generally thought of as those with birth years between 1965 and 1985) are buying the largest homes. They're the most likely to have children, with schools as "top of mind" and often have their parents living with them, as well.

While the average Gen X'er home is 2,200 square feet, Millennials typically purchased 1,720 square foot residences.  Boomers were in the 1,800-1,920 range with the larger homes going to younger Boomer buyers.  Jonathon Smoke, chief economist at realtor.com, notes that "older boomers are trying to downsize."

Of course, home size varies by regional price points.  The relationship between size and demographic group remains constant, however.

What does this have to do with CRM?  A good CRM system allows you to "slice and dice" information so you're able to associate profile information with individual prospects and then search through your database, using software tools, to locate those prospects meeting specific criteria.  Do you have more of your largest floorplan units available?  Consider creating a demographic-specific search and develop a followup email focused on home size -- highlighting local schools and suggesting alternative uses for extra bedrooms!

CPS•CRM features customized prospect profiles; we can show you how to slice and dice data to market effectively!

Downtown: Calling Boomers!

It turns out that, like many other things, today's retirement location is not your father's retirement community!

Clare Trapasso, a Realtor.com staff member, reviewed a 2016 National Association of Realtors report and noted, in a Realtor.com article, an increase in the number of buyers aged 50-59 purchasing homes in urban areas -- and there's been an almost 10% increase year-over-year.

And, it's not unexpected, to some extent.  Boomers have changed many things over the last 50 years; why not retirement living?  Instead of moving to traditional retirement areas in the South and Southwest, Boomers are moving to urban centers from the suburbs in increasing numbers.

And, they're looking for many of the same amenities as Millennial home shoppers: walkability, amenity-rich environments offering shopping, dining, cultural venues and opportunities for learning -- through both traditional colleges as well as learning centers.

What's a builder to do?  First, minimize all of the entanglements associated with suburban living -- maintaining all of the amenities, driving to shop, locating services and the like.  And take a serious look about incorporating elements at the top of Boomer wish lists:

• On-site services -- think fitness centers, on-site pet and housekeeping services and a concierge. As well as "neighborhood" rooms for cooking lessons, wine tastings and book clubs!
• Neighborhood walkability -- this is key; in many cities, Boomers are revitalizing the historic downtown as they have the money to spend to dine, shop and enjoy museums, concerts and theater. While employment hubs aren't as important to this buyer, the ability to live life without relying on a car is critical. 
• Flexible floor plans -- Many Boomers are downsizing but they're interested in designing their new home around current interests and needs.  And, cookie-cutter doesn't work.  One person's second bedroom is another's craft room and another's home office.  

Communicating these new urban amenities and features requires thinking outside the traditional sales office static signage -- it's not your father's sales office, either!  Engage your buyers with SalesTouch -- an interactive touchscreen system designed to highlight community amenities, the surrounding neighborhood and flexible options available in your floor plans.  

What about involving your home shopper in the conversation surrounding your neighborhood and community lifestyle? Take a look at CPS' Social Media Wall -- designed to merge traditional marketing content and copy with social media to focus the discussion on what makes your community talk to these new urbanites! #GetSocial!