The Future of Advertising for Real Estate in 2022 - Based on the Latest Benchmarks

 The Future of Advertising for Real Estate in 2022, Based on the Latest Benchmarks


The real estate market is always shifting. From sales prices to the types of real estate agents, the industry is always evolving. To find out what’s next for advertising for this industry, let’s take a look at the latest forecast. The 2018 forecast predicted that millennials would continue to dominate the housing market, with Gen Z-ers following closely behind. Also, it was predicted that home builders would remain an important source of influence in digital advertising for real estate moving forward. Here are the highlights of the latest forecast and how it might affect advertisers in 2022.



What will the housing market look like in 2022?

According to a 2018 report from Redfin, demand for home ownership and a strong economy will continue to push up home prices. However, when analyzing the report, the company found that the most popular cities were actually a lot more affordable than you might think, with housing costs only rising by two percent between 2017 and 2022. In fact, this might even be a positive change for home buyers. In order to come up with this analysis, Redfin analyzed the cost of the homes people were looking to purchase in 2018, and compared that to what it expected to cost in 2022. The company also factored in the estimated growth rate for population, job growth, household formation, and sales.


How will millennials and Gen Z-ers influence the advertising industry?

To the surprise of many, Gen Z-ers (those born between 1995 and 2017) are the largest generation in the United States. According to Digital Third Coast, the US Census Bureau forecasts Gen Z-ers to have a mean age of 18.2 in 2022. This number is up from an estimated 17.5 in 2018, giving Gen Z-ers a huge platform and influence over the real estate industry moving forward. The report, “Future of Advertising for Real Estate in 2022,” states that Gen Z-ers are “obsessed with developing authentic personal connections.” In other words, they enjoy seeing people’s personal data when searching online. The report also stated that 73 percent of millennials would prefer to receive information about real estate from real estate agents that they already know rather than following brand-new websites.


What is the future of home builders in digital advertising?

With the Trump era behind us, and millennials and Gen Z approaching homeownership, home builders should have an easy time surviving another year. According to Hotwire, home builders, REITs, and real estate franchises will continue to outperform the S&P 500 index. The company predicts that home builders will have a 25.2 percent average annualized return from the first quarter of 2018 to the first quarter of 2022. Also, the share of home builders as a percentage of the S&P 500 will increase from 14.3 percent in the first quarter of 2018 to 15.1 percent by the first quarter of 2022. Of course, home builders aren’t the only industry to experience changes. With more modern home designs and custom options, consumers now seem to prefer home builders to create their custom homes.


How will this information impact advertisers?

The key takeaway from the report was that real estate advertising would continue to change to appeal to the demographic group most likely to be a buyer or buyer’s agent. The key insight of this forecast was that the relationship between the real estate agent and their client is becoming increasingly more important in driving sales, and this is being reflected in the types of ads real estate agents are creating for clients. A luxury estate agent will want to create an ad that highlights their own lifestyle and values, which reflects the values that their client has, rather than their competitor’s, as this will improve the buyer’s experience.


Conclusion

By 2022, the gig economy will continue to surge, as it has been in 2017 and 2018. This will be reflected in how agencies collaborate with these types of businesses and other freelancers. Since freelancers are more likely to use online platforms, it will be important for real estate marketing agencies to leverage them to provide services to their target audience. The forecast predicts that the gig economy will be valued at $1.7 trillion by 2022. By 2022, real estate marketing agencies will need to provide a personalized, one-to-one marketing experience to customers who are not using digital assistants. To achieve this, real estate agencies will need to provide full-service customer management, even as customers increase their demand for digital assistance.


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