Do you know who holds the most buying power?
October 10 2018
If your marketing tends to gloss over Generation X, it's time to rethink your strategy.
During the economic downturn of 2007 to 2010, Gen Xers saw their home equity decrease from $66,000 to $37,600, a free fall of 43 percent. They've since recovered in a significant way, with a median household net worth increase of 115 percent. In contrast, the median wealth of boomer households remains below 2007 levels.
Why does net worth matter?
Healthy net worth means a financially sustainable household. These families are prepared for financial emergencies. More importantly, they're more likely to have funds available for a home purchase or real estate investment.
Simply put: More money means more buying power.
How have they bounced back?
Prior to the Great Recession, approximately half of Gen X assets were tied up in their primary residences. Thus, this demographic saw the most substantial decline in home equity during the downturn. However, their home equity values have doubled since 2010.
Gen Xers are also prime earners in today's workforce. The median adjusted household income for this group grew more than 20 percent from 2010 to 2016.
How should you approach Gen Xers?
- Be authentic. They're skeptical and have a keen eye for hyperbole and price gouging. Don't try to fool them.
- Offer security. They're are looking for ways to ensure long-term financial stability and personal well-being. Your marketing and customer service should emphasize these ideals.
- Be social. Traditional online marketing methods such as email and social media play surprisingly well with this group. Find out their communication preferences and stay connected.
Generation X took a beating during the economic downturn, but they're ideal buyers in the current housing market.
Need more marketing tips? Get in touch today.