SPECIAL SECTION: MARKET UPDATES
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Emerging Markets And How To Reach Them
These generations need a little extra help but it’s worth the effort. BY CHRISTIAN OLIN | SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL
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ith interest rates as low as they are and additional contactless home loan services available, now is a great time to appeal to emerging and new markets for your business. Marketing to different groups of home buyers comes with concerns and challenges, since each group is unique. From millennials looking to buy their first home to Baby Boomers thinking about downsizing but feeling hesitant, these markets need a little extra help in the right direction. By recognizing your buyer’s desires and fears, you can tailor your approach. The kind of help each group needs differs, so understanding the unique
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qualities of each demographic is critical if you want to reach them.
MILLENNIALS Millennials are an emerging market that is only growing as even younger millennials are graduating from University or looking to move from their hometowns. While the average age for first time home buyers has increased over the past decade, homeownership is a goal for nearly all. In fact, over half of millennials hope to own a house in the next five years. The novel COVID-19 has sped up this influx, making now a great time to convert renters into homeowners. One of the biggest aspects
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holding millennials back from homeownership is lack of knowledge about the mortgage process, and the additional fees associated with purchasing a home, such as closing costs. However, more than half pay over 30% of their income on renting, meaning homeownership is more in arms reach than they think. Another factor is the common millennial belief that owning a home will require them to stay put in one location for a long time. Consider comparing the costs and benefits of renting and homeownership to understand how to guide millennials to financial success. The key to reaching this market can be done by presenting a streamlined, transparent mortgage lending
