Where Gen Z is buying up homes

Plus, Zillow adjusts its predictions… again

Grace Townsley
May 31, 2022

It’s all about family 

David here. Quick update on being a new dad. With a newborn and a four-year-old running around, it’s been crazy around here lately. I often get asked, “What’s the secret to keeping it all together?” I’ve got to tell you, I have no idea! 

But in all this craziness, I’ve realized how thankful I am to have a career where I can create the kind of work-life balance that I want while supporting the family I love. That is one of the true benefits of the career path we have chosen— we have the power to carve out the lives we want. 

On that note, I hope you had a restful weekend, and make the most of this short week ahead!

- David

Zillow revises their 2022 predictions… again

Source: Unsplash

With mortgage rates on the rise and price growth showing few signs slowing down, Zillow is pulling back on its once-bullish housing market forecast for the second time this year. While the company still expects a strong market with near record-setting sales, it won’t be the ultra-competitive frenzy that we saw in 2021. 

  • Zillow now predicts home prices will rise 11.6% over the next year, down from the 14.9% growth previously predicted 
  • Home sales are now predicted to hit 5.7 million this year, down from last month’s prediction of 6.09 million

Our take 

After the unpredictable quarter we’ve just seen, it makes sense that Zillow is revising its predictions. It’s important to keep in mind that these are only predictions. Right now, we’re seeing that the market is normalizing, and that’s why these numbers make a lot of sense to us.

There’s a new generation in town

Source: Yahoo

Lending Tree recently released an interesting report about the youngest group of buyers, Gen Z, born between 1997 and 2012. According to their data, these buyers tend to make purchases in affordable Midwest cities, they have relatively high credit scores (over 690), and put down an average of $24,000. 

Check out these key takeaways from the report: 

  • In 2021, 10% of buyers in the 50 largest metros were Gen Zers
  • The average Gen Z buyer in these 50 metros is just 22 years old
  • Salt Lake City, Louisville, and Oklahoma City are the top three cities for Gen Z buyers, accounting for more than 15% of mortgages in the demographic
  • San Francisco, NYC, and San Jose were the least popular cities for Gen Z buyers, accounting for less than 5% of mortgages in the demographic

Our take

From what we’ve seen, Gen Z buyers are typically looking for really modern, stylish homes, and a lot of the homes being built right now are just that. If you want to appeal to this younger buying group, it might help to get your foot in the door with a contemporary builder. The more listings you have that fit these buyers’ tastes, the more opportunities you’ll have to work with them. 

The top 10 relocation destinations

Source: Visit El Paso

It looks like the great buyer migration trend is here to stay. According to search trend data from Realtor.com, 40.5% of home shoppers looked for out-of-state properties in Q1. But affordability isn’t all that matters to today’s buyers. With NYC and DC making the list of most popular relocation cities, the data shows buyers will still shell out the big bucks for their dream destinations.

These are the top 10 fastest-growing destinations for relocation buyers:

  1. El Paso, TX
  2. Albuquerque, NM
  3. Washington, DC
  4. Birmingham, AL
  5. Hartford, CT
  6. Omaha, NE
  7. McAllen, TX
  8. New York City, NY
  9. Augusta, GA
  10. Greensboro, NC

Our take

Reaching relocation buyers is all about leveraging your tech. You can use the internet to reach anyone, anywhere. Start with social media, but don’t forget Google advertising, your website, and YouTube videos too. In addition to using technology, work to widen your referral network. Reach out to agents in other cities and start setting up referral relationships. The right partnerships now can pay off for years to come. 

Schematics 

The news that just missed the cut

Source: Wall Street Journal

Foundation Plans

Advice from James and David to win the day

Ready or not, summer selling season is upon us! Use these tips to kick your career into high gear so you can capitalize on every summer opportunity.

  • Leverage your social platform. This is the perfect time to experiment with new platforms and content that can help you connect with more potential clients. 
  • Double-down on marketing. Especially local marketing. If out-of-towners are considering moving to your metro, you want to be front and center so you can capture those new leads. 
  • Ask for help. If your business is growing fast, it might be time to hire a part time or virtual assistant. Having someone to help you manage your marketing and communications frees you up to make even more meaningful connections.
  • Don’t forget yourself! It’s easy to get swept up in the season and forget to refuel. But no career is worth sacrificing your own mental and physical health. Take care of yourself, and the success will follow.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

Source: Rocket Mortgage

Today's stories really prove there’s still so much opportunity out there for all of us. If you’re struggling to find new leads or feeling like this career is just impossible, let us encourage you. Diligent, consistent, focused work ALWAYS pays off. Real estate isn’t rocket science. It just takes determination. You’ve got this! 

- James and David

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