In this chapter Demographics Generations

In this chapter § Demographics § Generations § Challenging stereotypes § How the Boomers are changing retirement § The client across the desk 1 -1

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 1 -2

Living Generations § G. I. Generation (1901– 1926) § Silent Generation (1927– 1945) § Baby Boomer (1946– 1964) § Gen X, 13 th Generation (1965– 1976) § Gen Y, Echo Boomer, Millennials, Nexters (1977– 1994) § Gen Z, Internet Generation, New Silent (1995– ) 1 -3

Nonagenarians and Centenarians § Those in their 90 s or 100 s § One million by centenarians by 2030? § Challenge societal, care, housing institutions 1 -4

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 1 -5

Matures § “Service isn’t what it used to be” § Afraid of out-living their assets § Formality is important, courtesy and faceto-face interaction § Relationship marketing is key, value personal referrals § Be aware of physical limitations, do not patronize 1 -6

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 1 -7

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 1 -8

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 1 -9

Exercise: Generations § What are the ages of the oldest and youngest persons in your family and office? § Where do you fit in your family’s ranges of ages and generations? § How do the generational differences impact communications in your family and office? 1 - 10

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 1 - 11

Old, Older, Oldest § Old (65+) § Older (75+) § Oldest (85+)? 1 - 12

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 1 - 13

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 § 1 st choice–services that allow elders to stay in their own homes § Significant number of grandparents are caregivers for grandchildren 1 - 14

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? 1 - 15

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 1 - 16

Myth: Afraid of technology Reality: § Active users of the Internet § Boomers will continue the trend § Use Internet for e-mail, search properties, research neighborhoods 1 - 17

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 1 - 18

Myth: Likely to be crime victims Reality: § Statistically less likely § However, personal safety and fear of crime important factors in choosing a location 1 - 19

How Baby Boomers are Changing Retirement § Largest, wealthiest, most educated consumer generation in U. S. history § Markets and services will adapt 1 - 20

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 1 - 21

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 1 - 22

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 1 - 23

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 1 - 24

Factors in Selecting a Location § Low cost of living § Near family § Access to quality health care § Better climate § Near a lake, river, ocean 1 - 25

Single Boomers § 37% are on their own § Single, divorce, separation, widowhood § Trends may emerge in group living arrangements and mutual help groups 1 - 26

Old, who me? § Boomers do not see themselves as old or aging § Forever young at heart § Aging not part of their self-image § Don’t see “senior” applying to them § “Do you see yourself living in this house five or ten years in the future? ” 1 - 27

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 1 - 28

F. O. R. D. F = Family/Friends O = Occupation R = Recreation/hobbies D = Dreams 1 - 29

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 1 - 30

Golden Rule Everyone hopes to be a senior one day and be treated then as you would want to be treated now. 1 - 31