How Institutions Can Catch the Marketing Wave Behind Millennial Real Estate Investing

Despite fears of rising interest rates and a housing cycle that seems to be nearing its peak, real estate investment continued to show growth throughout 2017, with a record setting $287 billion in investment volume.¹

While investment in the sector has remained strong, there is enormous untapped potential waiting in the form of younger investors. As a result, real estate investment firms need to develop effective branding and marketing plans to reach these investors as they continue to earn more and build investable assets.

The millennial generation is just now entering peak earning years, a time when many are beginning to plan for the future in the form of long-term investments. As a demographic that now represents the largest age group in the United States, millennials will play a crucial role in the future of real estate investing, and a report by Fannie Mae found that 85% of millennials view real estate as a good financial investment.²

While the millennial age group has shown interest in investing in real estate, they have been less enthusiastic with their wallets. Studies show that millennials are investing much more conservatively than their older counterparts, with as much as 25% of millennial investments held in cash! As a generation that has had their formative years in the workplace shaped by the global financial crisis of 2008-2009, millennials are naturally weary of large financial institutions. This presents an opportunity for companies specializing in real estate investments to differentiate themselves with effective marketing, branding and messaging.

Although many younger investors are acutely aware of the negative economic effects caused by the bursting of the housing bubble, a 2017 study from RealtyShares showed that 67% of Americans ages 18-34 were interested in investing in commercial real estate, while only 36% of seniors ages 65 and older showed similar interest levels.³

With investors over the age of 60 constituting over two-thirds of the typical wealth managers’ clientele, there is a huge opportunity for growth in the millennial demographic, especially for managers offer alternative investments like access to real estate.

Real estate investment firms can use the power of digital marketing to drive millennial interest and awareness. For over 20 years, MBC Strategic, a Santa Monica-based marketing and branding agency specializing in marking and branding for financial institutions, has been delivering cutting edge branding, design and content for clients positioning them at the forefront of their industry. SEO and social media advertising campaigns on platforms such as LinkedIn, Facebook, and Twitter deliver proven success, targeting potential clients where they spend their time. However, it is equally important to have a consistent, modernized brand that conveys a message to future investors. There is no better way to create effective investment marketing than utilizing the bandwidth of an experienced investment marketing agency.

Specializing in financial institutions such as private banks, real estate investing, financial advisory firms and alternative investment firms, MBC Strategic has helped financial companies reach out to millennials. In order to secure the attention of the millennial generation as investors, firms will have to prioritize marketing strategies that work best to a younger audience. Many young professionals are put off by outdated websites and legacy styling, which gives them less confidence in a brand, regardless of investment performance. Mobile optimization is critical for a generation that is constantly on the go, and many young people will refuse to consider firms that do not have updated and recent functionality. MBC Strategic has helped a range of real estate related clients develop mobile friendly websites that make investing easier for the short attention spans of today’s millennials.

As millennial investors continue increasing their net worth, firms will look to take on more and more of them as clients. Firms specializing in real estate investments in particular are poised to make a big difference with this age group. However, it is critical that real estate investment firms utilize effective marketing techniques to separate them from the crowd and further engage millennial investors.

To learn more about MBC Strategic and how we can help investment firms capture our world’s future investors through effective real estate investment marketing and branding efforts, contact us here.

1.      http://docs.preqin.com/reports/2018-Preqin-Global-Real-Estate-Report-Sample-Pages.pdf

2.      https://www.cnbc.com/2017/03/07/millennials-drive-housing-confidence-higher-despite-red-hot-prices.html

3.      https://www.forbes.com/sites/andreacoombes/2018/03/13/millennials-are-good-at-saving-but-investing-not-so-much/#1c33e60b7266