Why pandemic buyers are headed to the ‘burbs

Kerrie Kennedy Leave a comment

Once viewed as a symbol of 1970s and ’80s urban flight, the suburbs are in demand again, as buyers increasingly look outside of urban areas in the midst of the COVID-19 pandemic and recession.

According to a new report released by real estate firm Marcus & Millichap, the pandemic has not only altered people’s housing choices, it’s also changing where they want to live.

Nationwide lockdowns have been the key driver of the change, according to the study, leading many Americans to seek larger residences in order to accommodate home offices, home gyms, online learning and a wish for private outdoor space.

Practically overnight, the lockdowns have also led to another huge demographic change: the working-from-home phenomenon. In March, millions of American workers, mostly in white collar industries, suddenly found themselves working from home. Nearly five months later, it doesn’t look like they’re going back to the office anytime soon.

According to the Pew Research Center, nearly 60% of American workers are now working remotely. Compared to just 7% of workers prior to the pandemic.

Last month, Google announced that its employees will continue working from home until summer of 2021. Meanwhile, Twitter’s employees have been told they can stay home indefinitely, and Facebook expects half its workforce to be remote within the next 10 years.

Which begs the question: why pay high rents in places like San Francisco and New York City anymore?

“The ability to work remotely has diminished the value of a short commute in the home-search equation, making lower-cost suburban locations more favorable,” read the Marcus & Millichap report.

While some employees might be waiting it out to see if the trend lasts before committing to a home purchase in an “un-commutable” area, a Harris Poll conducted in April showed that 40% of city dwellers across the country were considering moves to less densely populated areas in the face of the pandemic.

“People will be much more cautious about living in high-density areas with so many people nearby,” predicted National Association of Realtors Chief Economist Lawrence Yun in a recent statement.

Although COVID-driven migration is intensifying the shift to suburbia, the preference for suburban locations among older millennials was already happening prior to the pandemic. With 60% of millennials now in their 30s, many of whom are considering children, the importance of public schools is an emerging factor in homebuying decisions, according to the report.

Meanwhile, social unrest and a spike in urban crime rates could lead to more migration to the suburbs, potentially upending and reversing urban trends of the last 50 years.

With so many buyers looking for a suburban home, AgentEDU’s “Finding the Perfect Home for Your Clients” course is more relevant than ever. Get a monthly subscription to AgentEDU for $19.99/month.

How to reset your brand in a post-pandemic environment

Kerrie Kennedy Leave a comment

Between lockdowns, civil unrest, a recession and rising unemployment, 2020 has been a difficult year to say the least. But moments of great tragedy can also provide opportunities to hit the reset button.

And for many real estate professionals, that means it’s time to rethink their marketing messages and re-introduce themselves to clients in a post-pandemic world.

The new normal is here, but what should the message be? According to a recent study from market research company GfK, more than half of U.S. consumers polled — 55% — say brands will need to adopt a new set of concerns and messages in a post-COVID-19 world.

But another set of respondents — 45% — felt that companies should return to pre-coronavirus themes “as soon as possible” to help consumers forget that the COVID-19 crisis happened.

So, where does that leave your brand?

“Our research shows that brands need to tread cautiously in this new phase, somehow addressing a very divided consumer public – some who might want to pretend that the virus never happened, and others who see it as a transition to a new world,” said GfK Director of Global Consumer Trends Stacy Bereck in a press release accompanying the findings. “With the world continuing to shift on an almost weekly basis, transformed by the virus and nationwide protests and outrage, companies need to monitor consumers’ changing concerns and needs even more closely.”

While it might sound a little like stepping into a minefield, there are ways to navigate these tricky times. And it starts and ends with knowing your brand — and your clients.

According to the study, Americans from different circumstances have different feelings about appropriate post-COVID messaging. Close to 60% of those with children under age 3 favored a return to pre-virus messaging, compared to just 34% of those who have no kids. And while more than 60% of women said they think brands should behave as if the post-virus world is completely different, men were split 50-50 between forward-looking and nostalgic messaging.

While both groups put a high priority on themes around price controls for key items (such as hand sanitizers, masks and toilet paper) consumers who think we should return to earlier themes are more likely to favor communications around brand innovation, promotions and general product information. But consumers who feel it’s important to recognize that the world is different now would prefer to see messaging about protecting the health of consumers and employees.

“If you’re an agent who serves the 55-plus demographic, you need to be able to adapt and update your skills digitally,” said Mike Cuevas, founder of realestatemarketingdude.com. But being able to present and show virtually are key no matter what the demographic, he added. “COVID has changed the way we present, and the way people see properties. And they won’t really see properties now unless they’re interested.”

And getting them interested is all about the type of content you provide. “Focus on solving problems, not selling services. The message shouldn’t always be about real estate. Think of yourself as a community resource,” Cuevas said. Agents whose clients include lots of young families could offer a list of daycare options. Other ideas include providing a list of local restaurants that offer takeout or are open for dining.

Agents should also think about helping out the communities they serve in hands on ways. “There’s a huge opportunity right now to generate a ton of attention around your brand by taking part in helping our communities,” Cuevas said. “Get behind efforts to help out small businesses [that have been impacted by COVID-19 or protests].”

And with fewer in-person meetings on agendas, video content has never been more important. “You can’t shake hands anymore,” Cuevas said. “This is how you market yourself. Content is what converts the consumer.”

While your content should reflect your own personal expertise, it should also shine a light on who you are as a person. “It’s all about just connecting right now,” Cuevas said.  “The biggest mistake I see agents making is they use content to try to sell. That’s a mistake. Focus on attention versus sales and you win every time.”