The average age of a first time homebuyer is about 32, making your first-time home loan prospect a millennial. Marketing mortgages to millennials are unlike other generations. Sure, they want low rates and minimal down-payment, but this tech-savvy generation demands much more than that.
Millennials expect a digital mortgage.
And considering that millennials will soon account for nearly 50% of the workforce and be a leading force in the economy, lenders would be wise to deliver a digital mortgage experience as well learn how to market to millennials.
Read on to learn 17 shocking facts about the mortgage power of millennials, their financial habits, their technology use habits, and their home purchasing preferences. Use these stats to create a marketing plan and cash in on the billion dollar purchasing power of millennials.
Don’t forget to visit our homepage for digital mortgage tools to help you convert those prospects into mortgage consumers!
The Mortgage Power of Millennials
1. Transfer of Wealth
About 30 trillion dollars of wealth will be changing hands from Baby Boomers to younger generations, including Millennials, over the next years, peaking at about 2031 and continuing until 2045.
2. Looking for a Partnership
60% of Millennial Facebook users they’d like their financial institution to feel like a partner (this can easily apply to lenders!)
3. Always on Mobile
77% of Millennial Facebook users say that their mobile phone is always with them.
4. Online Home Shopping
99% of Millennials go online to shop for a home. They search for information about the neighborhood, commute time, as well as home loan information.
5. Lack Of Mobile Communication is a Barrier
Nearly 25% of the Millennials surveyed in this FICO study said that a lack of a mobile app was seen as a barrier to communicating with financial institutions.
6. Feel Misunderstood By Large Banks
44% of Millennial Facebook users feel they are financially misunderstood by their financial institution (here’s an opportunity to steal customers away from giant lenders!)
7. Trust Social Media
8. More Ethnically Diverse
Large-scale immigration from Latin American and Asian countries means a more diverse Millennial generation than previous generations.
9. Desire the American Dream
90% of Millennials that are currently renting plan on buying a home in the future.They feel that buying a home is a valuable investment.
10. Largest Workforce
Millennials currently represent the largest portion of the U.S. workforce and will continue to grow as the last of the generation are coming of working age.
11. Homeownership Rate are Increasing
Homeownership rates for Millennials are at about 36% and increasing at a faster rate than previous generations.
12. Social Media Drives Desire
Social media, particularly Instagram, is creating a “Fear Of Mission Out” situation that is triggering Millennials to be proactive about home buying.
13. Engagement Influences Purchasing
62% of Millennials said that user experience and engagement with a brand influenced their purchasing decision. The effect was stronger than advertising alone.
14. They Have Money To Spend
Millennial spending power is estimated to be $3.39 trillion.
15. Constantly on Their Mobile Device
Millennials touch their mobile phone an average of 45 times a day and are more likely to find useful content on social media than on search engines.
16. The most Active Social Media Generation
83% of Millennials use Facebook, 53% use Instagram, 37% use Twitter, and 34% use Pinterest.
17. Huge Amounts of Time Online
Millennials spend an average of 25 hours online –that’s not including work-related online usage. That’s as much as time as a part-time job!
What This Means To You
You’re actually in a very exciting position! You now know that Millennials aren’t too happy with large banks, they prefer a more personalized mobile experience, they have the desire to buy a home, and the money to back it up!
So get your Millennial marketing down, pair it with the right digital mortgage tools like a mobile-responsive website, and you’ll be set to close loads of mortgages well into 2040 just from Millennials alone!
Want to test drive one of our new mortgage website templates? Click here for a free trial –no credit card required!