Demographics

1
In this chapter

• Demographics
• Generations
• Challenging stereotypes
• How the Boomers are changing retirement
• The client across the desk

2
Why Demographics?

• Provide insights into what is important to
  clients and customers
• Learn about viewpoints, reactions, motivations,
  lifestyles, hopes, and fears
• Help us understand how best to communicate and
  market

3
Living Generations

• G.I. Generation (19011926)
• Silent Generation (19271945)
• Baby Boomer (19461964)
• Gen X, 13th Generation (19651976)
• Gen Y, Echo Boomer, Millennials, Nexters
  (19771994)
• Gen Z, Internet Generation, New Silent (1995 )

4
Nonagenarians and Centenarians

• Those in their 90s or 100s
• One million by centenarians by 2030?
• Challenge societal, care, housing institutions

5
Defining the Market

• Generational profiles inform how
• Services are provided
• Marketing communications are developed
• Buyers and sellers are counseled
• Matures/Elders G.I. Silent Generations
• Seniors 55, Matures plus Baby Boomer

6
Matures

• Service isnt what it used to be
• Afraid of out-living their assets
• Formality is important, courtesy and face-to-face
  interaction
• Relationship marketing is key, value personal
  referrals
• Be aware of physical limitations, do not
  patronize

7
Boomers

• Value convenience and customization, hates rules
• Generally not needs-driven
• Expect a timely response
• Want and expect expert services and advice
• Age targeted, not age restricted, senior is a
  tough sell
• Do not see themselves as old

8
Gen X

• Want you to provide access and get the paperwork
  done
• Pragmatic, risk-takers, results oriented,
  skeptical, high tech/low touch
• Expect e-mail response time
• Already know the good deals, do not try to sell
  them anything

9
Gen Y

• Pragmatic, but empathic with elders
• Prefer directness over subtlety, action over
  observation
• Multi-tasking
• Heavily influenced by media and peers
• Technology is a way of life
• Influenced by the look of your Web site

10
Exercise Generations

• What are the ages of the oldest and youngest
  persons in your family and office?
• Where do you fit in your familys ranges of ages
  and generations?
• How do the generational differences impact
  communications in your family and office?

11
How Do REALTORS Compare?

• Median age of REALTORS? is 52
• Median age of brokers is age 53
• Median age of sales agents is age 49

12
Old, Older, Oldest

• Old (65)
• Older (75)
• Oldest (85)?

13
Myth Old people are the same

• Reality
• We become more biologically diverse as we deal
  with a combination of chronic health conditions
• By age 70, almost all seniors are dealing with
  one or more of seven chronic conditions
• We age at different rates

14
Myth Families dump relatives into nursing homes

• Reality
• A last resort for most
• Less than 5 of the elder population live in
  nursing homes
• Most families provide in-home care
• 1st choiceservices that allow elders to stay in
  their own homes
• Significant number of grandparents are caregivers
  for grandchildren

15
Myth Old equals ill and disabled

• Reality
• More than half of respondents at all age levels
  rated their health as good to excellent
• By age 70, almost all seniors are dealing with
  one or more of 7 chronic health conditions
• Are Baby Boomers in worse shape than previous
  generations?

16
Myth Lonely and withdrawn

• Reality
• Close friends and relationships same as younger
  people
• Friends, family and community are a motivation to
  age in place
• Preference not to live with children
• Transportation is important for social
  involvement and independence

17
Myth Afraid of technology

• Reality
• Active users of the Internet
• Boomers will continue the trend
• Use Internet for e-mail, search properties,
  research neighborhoods

18
Myth Living in poverty or wealth

• Reality
• Percentage of older people living in poverty has
  steadily declined over the years
• Many are cash poor and house rich

19
Myth Likely to be crime victims

• Reality
• Statistically less likely
• However, personal safety and fear of crime
  important factors in choosing a location

20
How Baby Boomers are Changing Retirement

• Largest, wealthiest, most educated consumer
  generation in U.S. history
• Markets and services will adapt

21
When to Retire?

• Challenging concept of when retirement begins
• Ideal is working part time or back and forth
  between work and leisure
• Why? Mental stimulation, challenge, continued
  earnings

22
Boomer Wealth

• Median income of 64,700 compared with national
  median of 46,300
• 26 income of 100,000
• Highest incomes in large city suburbs
• Median net worth
• 616,000 for incomes 100,000
• 184,000 for incomes 50,000 - 99,000

23
Sandwich Generation

• Extended period as a sandwich generation
• Delayed marriage and family, parents living
  longer
• Teenagers and adult children living at home
• Two-thirds financially support children over 18

24
Homeownership and Debt

• 78 own a primary residence
• Home is 40 of net worth
• 100,000 median home equity
• Significant number own second homes and plan to
  convert to primary
• More indebted and entering retirement with higher
  debt loads than parents

25
Factors in Selecting a Location

• Low cost of living
• Near family
• Access to quality health care
• Better climate
• Near a lake, river, ocean

26
Single Boomers

• 37 are on their own
• Single, divorce, separation, widowhood
• Trends may emerge in group living arrangements
  and mutual help groups

27
Old, who me?

• Boomers do not see themselves as old or aging
• Forever young at heart
• Aging not part of their self-image
• Dont see senior applying to them
• Do you see yourself living in this house five or
  ten years in the future?

28
The Client Across the Desk

• No one size fits all answer
• Not every aging issue is an issue for every
  senior client
• Chronological age does not equal life stage,
  lifestyle, or activity level
• Think health stage or activity stage

29
F.O.R.D.

• F Family/Friends
• O Occupation
• R Recreation/hobbies
• D Dreams

30
The Opportunity

• As circumstances change, mature adults will
• buy and sell
• upsize and downsize
• move to a new location
• move back or half-back to be close to family
• move to assisted living environments
• and more
• Clients for life
• Become the real estate professional who can help
  them through the phases

31
Golden Rule

• Everyone hopes to be a senior one day and be
  treated then as you would want to be treated now.