Retirees in the Market for Real Estate
By Shawn Sturges
Infinity Property Ventures, LLC
The “Golden Years” are a time that most people look forward to as a time to relax and enjoy retirement. Retirement usually occurs at age 65, but we now see the retirement age being pushed back and even retirees returning to the job market. Real estate companies can capitalize on this market segment especially since most fall into the baby boomer generation and many have the means to purchase property.
One area that can be capitalized on is the fact that most retirees look to downsize from their current homes. Their kids no longer live with them and may only have their grandchildren for short periods of time throughout the year. Therefore, the need for large amounts of space is no longer required. Real Estate companies can be the solution in order to help these buyers find the perfect home in which to enjoy their “Golden Years”. This could provide the perfect opportunity for smaller properties to be added to the company portfolio so when retirees make the approach a listing of attractive properties can be showcased.
Another aspect that should be considered is the fact that as we get older more areas of life can become increasingly difficult. An example of this is the classic beautiful two story house in the suburbs that was purchased in order to raise a family. After the children have grown up and moved out the size of the house does not diminish and that second level may become a pesky area of the home. The human body tends to decline in health for a majority of the population as age increases, so this can make traversing large amounts of space or going up and down stairs an overwhelmingly difficult task. This means that properties with only one level would inherently become much more desirable to the retiree population.
We understand that this segment is an attractive addition to the growth of the real estate company, but how can we effectively target the segment? Social media should not be ruled out completely. Although some social platforms may not be appropriate to gain the attention from this population Facebook is probably the one social platform that should be utilized. Over the years Facebook has broadened its reach which eventually attracted many different groups of people. Moms and dads have profiles so do grandparents mainly to keep in touch with old friends from school along with family members that may live in various parts of the country or world. This means with the day no longer taken up by hours spent at work that leaves more time for retirees to spend on Facebook. Now, they will not spend all day everyday on this social tool, but this means that the investment into FB ads could be used to target this segment while they are signed into their account. As this population also becomes interested in learning how to use other social tools then it may be possible to target them on those platforms as well.
Real Estate companies could also establish small informational presentations to share their expertise with this segment. One presentation could be on the highlights of several properties within the portfolio that shows the reasons why downsizing may be beneficial. Another presentation could then be on wise real estate investments of a portion of their nest egg in similar properties which could in turn grow their nest egg. This is where companies can be creative in targeting a segment that would provide options that would help them enjoy their “Golden Years” instead of having to reenter the job market due to financial needs.
In short, use the growing number of retirees as a competitive advantage and capitalize on the opportunity. A Real Estate company that is considering the inclusion of this market segment into their long-term growth should spend time analyzing the needs along with wants of this segment. The real estate company may be looking to disrupt the market with their utilization of social platforms and techniques to set them apart, but do not overlook an area that can generate revenue while helping a large amount of the population enjoy their “Golden Years”.