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‘Gen Z’-ers are the next new home owners, so brokers need to better understand them asap, a market researcher has warned.
Brokers understanding ‘Generation Zed’ as it embraces future home ownership is crucial, an Australian researcher has explained.
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Speaking at a Mortgage and Finance Association of Australia (MFAA) event in Sydney on Tuesday (14 February), McCrindle Research director of advisory Ashley Fell outlined the rate and pace of modern society and how to best engage with ‘the customer of the future’.
The ‘digitally integrated generation’ (aka ‘Gen Z’) shared much of the aspirations and fears of previous mortgagors, but how they communicated with the world can be equally fascinating as it is confusing, mortgage broker attendees heard.
Citing latest Australian Bureau of Statistics (ABS) Census data and sharing entertaining ‘memes’, Ms Fell outlined how different generations have faced challenges on their quest for home ownership and why and how Gen Z thought and communicated about their issues.
“The world around us is changing,” Ms Fell said.
“We've got new generations of customers coming through seeking out advice about their goals and mortgage and aspirations.”
Referring to the recent pandemic years, Ms Fell continued: “Those last five years have really [had] a lot of societal and economic political change that has really shaped … all of us, but particularly those in the emerging generation.
“This is the context that they're shaped in.”
Ms Fell stated how in Australia, customers were being impacted by technological change, like artificial intelligence, predictive analytics, and “all these things impacting how businesses are run”, but also “how consumers expect information services to be delivered.”
What Ms Fell referred to as ‘slanguage’ formed a main part of how the younger generations communicated, where words like ‘bae’ (before anyone else), ‘Yolo’ (you only live once’) and ‘Fomo’ (fear of missing out), were just some of the ‘new language’ that has evolved amongst this generation.
“[Their] different characteristics slide into the workplace, into the market to communicate and serve this generation - particularly [for] such a big life decision [like] homeownership or a mortgage,” she explained.
“I think it's important that we understand them,” she added.
Home ownership dream ‘not dying out’
Despite the difficult context that Gen Z faces around wages not keeping up with house price growth, Ms Fell said the number one goal for this generation and “the hope that they have for their life” is still to own their own home.
“That comes above having full financial freedom and independence, excelling in their career, traveling and seeing the world and pursuing interests and hobbies,” she explained.
“So I think it's important for you [mortgage brokers] - as you think about this ‘future customer’ walking through those doors - to understand, what's their unique priorities and hopes and goals financially, especially for their life.
“But also just to know as well that homeownership dream is not dying out in the next generation; it's still very much ingrained into our psyche and vice-versa,” Ms Fell assessed.
You can find out more about how to reach Generation Z and Alpha at the upcoming Better Business Summit.
it will be held in the following locations:
Brisbane, 2 March 2023, Brisbane Showgrounds
Perth, 9 March 2023, Crown Towers Perth
Adelaide, 16 March 2023, Adelaide Convention Centre
Sydney, 23 March 2023, The Star, Sydney
Melbourne, 30 March 2023, Melbourne Pullman Albert Hotel
To buy tickets and secure your spot, click here.
Did you know The Adviser Premium members go for free? Become a Premium member here.
For more information, including agenda and speakers, click here.
[Related: Brokers turning to podcasting to improve financial literacy]
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