Engel & Völkers partnered with Researchscape in a study surveying millennials on their definitions of luxury, examining factors that impact their purchasing habits and how brands and real estate professionals can appeal to this demographic of wealthy youth. The report was titled “Meet HENRY: Influencing The Next Generation of Wealth”, in which the acronym HENRY represents ”High Earners Not Rich Yet”, or millennials and the younger members of Generation X with the highest earning potential.
Engel & Völkers found that HENRYs consider the reputation and expertise in their designated properties when choosing a real estate professional to work with. In fact, HENRYs reported that they would prefer to work with influencers when purchasing real estate. The study found that with the growing popularity of technology and social media, in order to attract the HENRY population of consumers, it is becoming crucial for real estate professionals to establish their online presence as influencers within their local markets.
“With HENRYs poised to become the next generation of wealth, luxury brands must start planning as to how they will service this distinctive demographic,” said Anthony Hitt, president and CEO, Engel & Völkers Americas. “HENRYs define luxury in terms of quality, and they make purchasing decisions based on brand reputation and word of mouth. As such, authenticity has never been more important, and real estate agents should position themselves as trusted advisors and sources of insider information before, during, and after the transaction. These consumers are going to seek out agents they feel are knowledgeable and trustworthy — and ones that they can relate to or even aspire to on certain levels.”
In other real estate news:
- Although Realogy Holdings Corporation reported a year-over-year increase in earnings of $2 million this third quarter report of 2018, it was reported that the residential real estate company fell behind its estimated earnings per share value. The corporation announced its plans for expansion with the standardizing of its commission plan in California, Texas, Colorado, as well as in three other markets. Realogy plans to expand into over 12 more markets by the end of 2018, attempting to attract new talent and speed up growth.
- Freddie Mac’s Primary Mortgage Market Survey reported a dip in this week’s mortgage rates with the 30-year fixed-rate falling from 4.86 percent to 4.83 percent. While the number is higher than last year’s rate of 3.94 percent, the Freddie Mac Chief Economist emphasize the decline of home sales is concentrated in expensive markets rather than entry-level or first-time buyer markets.
- The Zillow Group has announced its acquisition of the national mortgage lender, Mortgage Lenders of America. The addition of Mortgage Lenders of America will shorten the home buying process for those purchasing homes through Zillow Offers while supporting the Zillow Group’s approach of improving consumer experiences.
- The New York City Real Estate Tech Week is scheduled to launch from Nov. 5 to Nov. 9 and will highlight innovations and development in real estate technology. The keynote event will occur on Nov. 6 at the Metropolitan Pavilion, and event speakers include Doug Chambers, vice president of WeWork, Maria Seredina, from Zillow, and Jacob Werner, from Blackstone. This year’s event is estimated to have about 1,000 attendees, including delegations from France, the Netherlands and Northern Europe.