While the U.S. housing market faced rapid growth during the pandemic, the Philippines is currently at an all-time high vacancy rate. Landlords and home sellers are adapting to the demand decline by offering discounts to minimize vacancies. As real estate prices in Metro Manila become more affordable, this offers a great opportunity for house hunters looking for a new living space to move in.
While the real estate industry continues to navigate the post-pandemic housing market, we’re seeing a new sales trend coming in real estate—Generation Z is about to invade the housing market in the next few years.
While so many things have been said about millennials’ impact on the housing market, the spotlight is finally moving towards a new generation of young adults, or the so-called Gen Z. Although this generation hasn’t completely reached the market yet, real estate experts reveal that Gen Z already foresees the financial benefits of investing in real estate. Young as they are, this generation has a distinct level of financial maturity that serves to be applauded.
So whether you’re a real estate agent or someone who plans to sell a property, it makes sense to understand how Gen Z will affect the housing market in the coming years.
This generation was the first wave of ‘digital natives,‘ which means that these are people born when technology is already at its height. They have the internet, smartphones, social media, and other forms of modern technology. So what does it mean for real estate?
While technology takes a big part of Gen Z’s lives, don’t expect they will be easily impressed with technology for technology’s sake. They’re well aware that technology should be part of your business and marketing strategy, but they’re expecting much more from you. They need tech that will turn their lives, particularly, the home buying process, much easier.
We don’t mean that you have to use the latest technology for your marketing campaign. This can be anything from using digital listings to save time on house hunting, stepping up social media content to extend audience reach, or including a chat feature to the website so clients can send their questions and inquiries anytime and anywhere they want.
When it comes to content marketing, Gen Z views traditional advertising as outdated and inauthentic. Instead, be more creative by adding more value through content marketing. Gen Z has little knowledge of how mortgages and home buying works, so most of them will rely on the internet to know more. Posting informational content is a great way to reach more Gen Z clients since they view the web as the most preferred information source.
When adding information articles to your marketing strategy, make sure to include well-designed infographics containing a clear and detailed home buying process. If you want to really grab their attention, create a video series or an educational vlog that answers all questions about home buying. You can post the video on your website and social media to gain more viewers. You can also post blogs occasionally about home buying guides.
Believe it or not, this generation that has been mostly reliant on technology is actually looking for homes where they can escape from it. Gen Z looks for homes that double as a sanctuary, meaning they need a quiet living space where they can retire after a long, tiring day and savor the peace and quiet, away from the daily pressures of urban life.
Gen Z recognizes the convenience of staying close to cities and urban centers, but not necessarily in the heart of it. They want to stay out of all the noise and city hubbub. Accessible malls, restaurants, and grocery stores are still a great plus, but not too close to it.
Make it practical
With more members of Gen Z working at home, it’s no surprise that multipurpose spaces are becoming a favorite. Gen Zs look for homes they can use for work, exercise, parties, and other activities. Outdoor areas and expansive yards are also a big selling point, as they prefer multifunctional areas where they can relax and entertain guests.
Gen Zs also grew up watching home makeovers and DIY videos on YouTube. This means they’re open to fixer-uppers, and they’re not afraid of DIY work. They’re quite resourceful, and they’re willing to roll up their sleeve and get dirty for some repairs and home upgrades. So expect this young generation to buy more affordable homes that require some TLC.
While Gen Z is just starting to invade the housing market, it’s important to know about their housing demands and preferences to better prepare yourself for this next wave of clients. So if you’re trying to reach this new consumer base, keep our suggestions in mind to ensure a smooth home buying process with Gen Z.