How to Market to Baby Boomers for Real Estate Needs

How Does the Infant Boomers Demographic Behave – Trends and Statistics

First of all, the generation called Baby Boomers is the one following the Silent Generation and was born between 1946 and 1964.

The term already describes why this generation is called that way – during this time frame, 76 meg Americans were built-in.

According to Census data cited in Wikipedia (source), every bit of 2019, 71.6 million boomers had been living in the United States in 2019.

Younger Boomers

Younger Boomers made for 18% of all homebuyers in 2019, the median age was 60 years, and had the highest numbers of single female person buyers (21%) who are in the age grouping between 54 and 63 years (source).

Ordered from high to low, the main reasons to buy a home were the following:

• The desire to ain a home of their own (17%)
• Being closer to family unit and friends (14%)
• Wanting to live in a better expanse (10%)

Interestingly, this subgroup took the longest fourth dimension to find a home, which was 12 weeks, and they needed to view on average 10 homes earlier making a conclusion (source).

What nigh the preferred locations?

Ordered from the highest to lowest preference, these were the most likely locations where they purchased homes:

• Rural areas
• Small towns
• Suburbs

Despite having "simply" the 3rd-highest median household income at $94,400, they preferred purchasing the second-most expensive homes priced at $250,500, and with a median size of 1,800 foursquare feet.

Another interesting buying behavior to notation is that their share of buying multi-generation homes was the second-highest at sixteen%.

Additionally important to create the right marketing arroyo for baby boomers is that ix in x younger boomers purchased their home with the help of a real manor agent or broker (source).

Do They Finance, Too?

Yes, they practise.

In fact, 77% of the younger boomers finance 81% of the purchase.

For the down payment, 49% used savings, 46% used the cash they got out of the sale of another property, and 7% an inheritance.

Some obstacles to financing the home buy included student loan debt, but non student loans from their past, but for their children's education.

On average, the corporeality was $30,000 (source).

Older Boomers

Now, allow's take a await at the older boomers.
This is the age group between 64 and 72 years, and the median age is 68 years.

The society, from high to low, of the main reasons to purchase a habitation was the post-obit:

• Being closer to family unit and friends (22%)
• Retirement (19%)

The highest share of investment and vacation properties is owned by them at 10% and 7% respectively (source).

What about the preferred locations?

Ordered from the highest to lowest preference, these were the virtually often chosen locations where they purchased homes:

• Rural areas
• Modest towns

It also seems they have no problem to move greater distances at a median of 30 miles.

Considering being close to schools isn't of great importance to them, understandably they are less likely to buy homes considering of the closeness to them.

What rather moved the needle when information technology came to a purchase decision was the quality of the neighborhood and the convenience of reaching friends and family.

In contrast to Millennials, as I outlined already in this article, the costs of commuting are not important at all (source).

How Do They Behave Before and During the Buy Procedure?

Because of the high likelihood that the home they buy would be the last habitation they would exist living in, older boomers were less poised to brand whatever compromises on the home.

This was the case for 49% of this group (source).

Also, this group of babe boomers relied greatly on existent manor agents for the dwelling finding and buying procedure, and they were the most satisfied with the buying procedure (94%) (source).

How Does the Financing Situation Look Similar?

Compared to the younger boomers, the median income of the older ones was $83,200, below the one of all buyers ($91,600).

In 54% of the cases, the down payment for a loan came from the auction of another property sale and in 5% of the cases it came from an IRA account.

They had also credit carte du jour debt in 67% of the cases, which is quite loftier (source).

Is There Too Something to Learn About Boomers Being Dwelling house Sellers?

From the above, we could already acquire that to finance the buy of a dwelling house very often the auction of a primary residence helps boomers to be able to make the downwardly payment.

And really, older boomers belonged to the second largest share of home sellers (22%) in 2018.

Reasons for selling included (ordered from most likely to less likely):

• Being closer to family unit and friends (26%)
• Retirement (xvi%)

According to some studies, they also received the second highest equity (43%) and second highest dollar value ($74,000) (source).

This seller perspective is also important to know, because after in this article, we can employ this information non only to marketplace to the baby boomer home buyers simply also to the sellers.

What Is Trending the Virtually with Baby Boomers

Another aspect to take into consideration before starting to market to boomers is what property types are trending near and, thus, are in virtually demand.

1) Renting in Urban Areas

I am not sure if this trend is still a thing with Covid-19 and the behavioral changes I discuss further downwardly below.

But reportedly the number of renters in urban areas over the age of 55 increased by 28%.

The reason for this is that some retiring boomers prefer to alive in a place with conveniences and activity options that urban areas tin provide, such equally museums, restaurants, theatres, health providers and grocery stores (source).

2) Communities of Agreeing People

One type of living that attracts boomers are communities consisting of similar-minded people.

An case worth mentioning is Breadth Margaritaville in Florida (source).

These types of communities are specially attractive to boomers because they provide walkable, engaging and agile neighborhoods.

Unlike from the more isolated traditional retirement communities, these new ones are now rather integrated into larger, established cities or communities (source).

3) Rural Living

You probably accept heard of the term "snow birds".

These are people mainly retirees that live a menstruation of the year in warmer climates (ordinarily during the colder months in the northern hemisphere), and the other half of the twelvemonth back habitation.

As it seems, this kind of lifestyle might exist not that popular with boomers.

A trend can be noted that rural settings go more and more than popular with them.

Instead of Florida, areas such every bit Mid-Atlantic and Appalachian regions are preferred.

According to a Wall Street Periodical article, migration to counties such as Georgia, N Carolina and Tennessee has increased by 169% between 2010 and 2017.

This can as well be interpreted as an increased desire for rural living, where retirees can relish wide open spaces, more affordable housing options, and interstate travel ease.

Although this is a trend that wasn't establish only recently, it will be confirmed afterwards in my commodity, when I talk over some behavioral changes of boomers due to the Corona situation.

What May Have Changed in the Boomer Beliefs Since 2020

As you may have experienced yourself, it's almost impossible to ignore the Covid-19 state of affairs.

And due to this situation, there are some behavioral changes that tin can be noted in the housing market for all generations.

But since in this commodity I focus on the Infant Boomers, we will accept a closer expect at this group.

While the information I will present is not empirical, we however can derive some behavioral change from it that can give the states further clues for the overall Covid-induced boomer behavior.

According to an interesting article from realtor.com, because of the Corona situation, the question of when and where to retire got a flake more than urgent.

One infant boomer reports that she inverse her plans of moving to an urban surface area in Southern California and at present will rather motion to a rural area, where she would be "out of the rat race and out of the panic".

The Corona situation has made her realize the benefits of living in a rural expanse of America.

Another sixty-twelvemonth-onetime infant boomer couple was motivated by the crunch to sell their business firm as before long every bit possible.

Their first selling motivation was the high taxes, having more than space than they needed, and no kids in school anymore.

And at present they heard that more and more New York Urban center residents wanted to quickly motility to the suburbs.

This added to their motivation to sell their home and do the same.

They now prefer to exist farther away from the metropolis to avoid a likewise crowded identify with a higher population density.

The concluding case presented in this article is of a rather economical context.

It's about a 66-twelvemonth-quondam baby boomer living in Boston.

Due to the lock-downs, his work hours and his salary were drastically reduced, so he wouldn't be able to fulfill his goal to earn the biggest social security income by the age of lxx.

He now plans to purchase a "beach-bum" place in Florida, and realized that the time to realize dreams is now.

And then correct now he is looking for a cottage or condo most the h2o.

So, from the above anecdotal evidence, we tin can derive the following three trends or behavioral changes in baby boomers due to Covid-19 with a grain or two of salt:

• A college motivation and urgency to sell houses in urban areas, which could mean toll reductions in these areas due to a higher number of offers that enter the market.
• An increasing demand for houses in the suburban or rural areas, which could hateful price increases due to higher demand.
• The realization of dreams now rather than later and the tendency to downsize.

In my article nearly demographics and why they are so important to include in your real marketing strategy, I already confirm that boomers volition probably downsize.

But I mentioned that they would exercise this later in life.

However, the current situation may likely motility this plan a bit higher up on their agenda and it could be done rather earlier than later.

The same is true nearly the selling motivation, which was quite low in 2018 co-ordinate to my article.

This is as well something that may likely change, especially in urban areas.

How a Marketing Strategy for Baby Boomers Could Wait Like

Since yous have meliorate chances to reach the boomers by using search engines for your marketing campaigns, let's focus on them.

To go faster results, we would use the Google Search Ads approach to get results sooner just y'all volition need some uppercase for that.

To learn more than in-depth on how to apply Google Search Ads for existent estate marketing, I invite you to read my in-depth article on this topic.

In today's commodity, I will give y'all a rather x,000 foot view of a possible marketing strategy.

Marketing to Boomer Buyers

When marketing to this age group, the get-go thing is the selection of the right offer to promote.

From the above data, nosotros now know what they prefer.

Depending on your copywriting skills for the offer landing page you will use with Google Search Ads, you tin can take the direct route and offer a certain holding right away, or the rather indirect road (what is usually recommended) and outset offering something for costless, which is ordinarily some kind of a lead magnet.

When using the direct route, I would, for example, focus on promoting on the landing page single story homes in rural areas with, let'south say, an enclosed dominicus-room.

To have a great pb magnet (read about the creation of pb magnet in this commodity of mine), you desire to address some of their needs and could, for instance, offering a brusk eGuide or a free Video-Course nigh the rural living lifestyle in the targeted area.

You might have an advantage over your competition if your existent estate business is already located in a desirable rural area for boomers.

But this becomes more than relevant only on the selling side of things and not to generate leads with Google Search Ads, since this tin can exist done independently of the location.

Since yous too know that potential buyers are less likely to be found in these rural areas but rather in urban ones (boomers that want to become away from urban areas and size a bit down), you could have the Google Search Ads shown only in urban areas.

Again, it all comes down to testing, something that I discussed in-depth in my article about Google Search Ads.

You lot could use keywords that are all more than or less retirement related.

Merely to give you an idea, I found the following keywords by doing a fast keyword research:

• retirement homes
• retirement communities
• senior living communities
• 55 plus communities
• retirement living
• over 55 communities

To target the boomers' needs in the Ad Re-create, a headline of a Search Ad could, for case, be something similar "Affordable 55 plus communities in Georgia".

Marketing to Boomer Sellers

Depending on where you are coming from, you lot might accept the intention to become a nice deal as a real manor investor from boomer sellers or go a listing contract as a realtor.

This is why you might want to also market to boomer sellers.

The campaign will be like to the ane in a higher place to boomer buyers.

It will besides exist washed through Google Search ads, just this fourth dimension with a slightly different angle and plain, a unlike landing page.

Like in the anecdotal prove from above, some boomers want to get rid of their house to move to a more than retirement-friendly area.

What nosotros as well know is that very often, they will take to sell their principal residence before they tin can buy their new habitation.

This entrada tin get a bit more tricky, since you volition compete with all the advertisers in the corresponding area that bid for keywords like "Sell my house" ($12 per click, ouch), or "Need to sell my house" ($11 per click, ouch once again).

Using these keywords would increase the costs of testing significantly and if you recollect more than nearly the intention of someone using these keywords, you will conclude that these are rather sellers that are leaning on the drastic side of things.

This is an opportunity for wholesale investors.

But for wholesalers it is not necessarily important that the sellers they target are boomers.

So other marketing methods could exist used too, such as discussed in this article of mine.

For them, "cold calling" (read my commodity on that here) or prospecting could be some other approach.

But let'southward become back to Boomer sellers.

To discover the right keywords, we would demand to be a flake more creative, and await at the behavior of a belongings possessor that wants to sell.

You could enter where they are not yet drastic, simply are already looking to sell.

Here, you could utilise lower competition keywords, such equally "realtors in XYZ", "Real estate amanuensis in XYZ", etc.

These keywords are less expensive.

Other ones that could be used are fifty-fifty more for browsers or data based searchers, such as "how to sell my abode".

A kind of a "ninja trick" is that you can also use keywords that speak to boomer buyers at first glance (since they often need to sell their chief residence beginning) and combine this with the correct advertizement and landing page copy.

There, you could communicate that you tin also assistance sell their home first.

Depending on the keywords yous will be using, you lot could still do a single landing folio, but this time either with a lead magnet that is related to the respective keywords or an editorial, or a combination of both.

People that use the less expensive keywords are non as shut to taking action as the ones typing in "need to sell my house".

The browser type keywords likely catechumen fewer clicks to leads, but due to the high click costs of the loftier competitive keywords, it likely works meliorate to get with the lower competition ones.

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Source: https://hackingrealestatemarketing.com/real-estate-marketing-to-baby-boomers/

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