Today, with the “X’er” guidebook still tucked under their arm, these same real estate professionals are now on their way back to the classroom to learn about yet another generation of customers whose thinking and needs are almost as different from the X generation member as the X’er was from their predecessor generation, the “Boomers.” Move over “X’ers” the “Y” generation has arrived on the real estate scene. Currently between 15 and 29 years of age this generation promises to be as challenging as either of their predecessors.
While the full range of this group’s uniqueness has yet to be discovered several factors are already clear. One of the most distinguishing features of generation “Y” is how it approaches community, environmental and quality of life issues.
From a historical perspective it was the Civic generation (currently 62 – 85) who, in the late 1940’s and early 1950’s created the post WWII communities that most of us where raised in. Their emphasis was focused on survival and building. When the Boomers came into their own in the mid 1970’s their priorities tended to flow around their own financial success and prosperity and their lives where, as often as not, was played out in new upscale suburbs.
By the time the X generation joined the market it was clear that their priority was in the area of balanced lives and quality of life. This group’s sense of community quickly centered on commuting distances, safety issues and affordability
Based upon the research conducted to this point it is clear that the “Y” (Also known as the Millennia) generation will present the industry with a whole different approach to the concept of community, environment and quality of life.
For this group the meaning of community returns to something quite similar to that of the Civics. Proximity is important but so are quality, safety and affordability. Y generation members are very much concerned about the quality of their communities, not just in their own neighborhoods but also across the entire community. Most of all they are impressed with the need for everyone to work together to build strong and cohesive communities. Moreover they are much more likely to purchase a property in the midst of what might have been considered an “undesirable” neighborhood and then work to make it safe and attractive. They are also much more sensitive to various environmental issues than any of those generations that came before them.
The latest evidence of this phenomenon can be found in the research just concluded by the REAL Trends organization. Steve Murray’s latest book, published in early 2007 is entitled Its All About People, the research examined over two hundred and fifty brokerage firms to determine which went from being “good” in 2001 to being “great” in 2007. One of the several factors that Real Trends discovered was common to those who reached greatness during this period was a compelling sense of community.
Murray’s research disclosed that agents and staff who worked with companies who were active in their communities had a stronger sense of pride and accomplishment. He further observed that this pride was reflected in productivity and overall success. The research also disclosed that brokerage community involvement frequently went beyond charitable giving to include the provision of management and housing related expertise to make the community a better place to live.
Another source of research that pointed to the important of community involvement and Royal LePage’s CEO Phil Soper generated environmental sensitivity. Soper’s research disclosed that:
• 80% of adults prefer to do business with companies that have committed to a specific cause for a long period of time rather than those who opt of multiple short-period causes.
• 84% of consumers indicated that their impressions of companies who have a charitable program are better than those who do not.
• 66% of consumers said they would switch brands to support a cause
• 54% of consumers said they would pay more for a product or service from a company that supports a cause they care about.
From all of these circumstances comes the concept of the social and environment report card. Generation “Y” consumers are not only very interested in the charitable and environment dynamics of their community but early on they expressed a strong preference to do business with firms and individuals who share and demonstrate this priority. But unlike their predecessors, who may well have given credit to anyone who simply expressed an interest in the community or environment, these young consumers, who by the way are purchasing real estate at the youngest age in history, are demanding evidence that social concerns are being manifested in actual good works. The evidence that satisfies this demand is called the social and environmental report card and it is becoming one of the more significant challenges facing today’s enlightened real estate brokerages.
Realtors® as individuals and some firms have, as the Real Trends research confirms, for many years been generous in their support of community causes. However for most civics and many boomers this involvement was more personal and private in nature. While some sought out the public relations value of community involvement most did their “good deeds” behind the scenes.
It is from this situation that the report card challenge has been created. The Y generation lies somewhere between cynical and suspicious when it comes to claims of generosity and civic involvement. Accordingly they are demanding to know both the nature and effect of what efforts their vendors have made to improve the immediate community condition. As a result more and more companies in all industries including real estate are supporting community causes, establishing charitable foundations and seeking partnerships for their good will programs.
The challenge ahead will be to encourage everyone within the company environment to share their community energies, spirit and passion with the company team in order to build internal pride in the company and external credibility within the consumer.
Companies who wish to positively respond to these consumer expectations might consider; focusing their charitable and community building efforts on a cause that they will be identified with rather than participating in a piecemeal fashion with several causes. In either event it is important to disclose these efforts in a manner that will establish the company’s “social credentials.”
Companies should make sure that their websites appropriately reflect their community and environmental commitments. Firms that are not environmentally engaged can demonstrate their “sensitivity” by creating community and environment “pages” that contain Information and hot links regarding local environmental related issues, concerns and commitments.
