THE ADVANTAGE
Your monthly recap of the most important
mortgage-related news, perspective, and advice
March 2024
4 minute read
Did you know that 45% of Gen Zers plan on buying a home before 2026?
Since Gen Z makes up about 27% of the nation’s population, that equates to 30.8 million people who plan on entering the housing market in the next few years.
Let’s talk about what your credit union needs to do now to prepare for them.
Gen Z Psychographics
Before I share any tips or advice about marketing to Gen Z, it’s important that we first get to know this next generation of homebuyers a little bit better.
Gen Zers were born between 1997 and 2012, meaning the oldest of them are turning 27 this year. Many of them have been turning to electronic devices for entertainment since before they could walk. 94% of them own laptops, and 75% of them prefer spending their free time online, albeit, with a smartphone.
When it comes to brand interactions, Gen Z believes how a company represents itself digitally is more important than in-person. According to a Squarespace survey, 58% say they can remember the color of a website better than someone’s eye color!
57% prefer brands to reach out to them via email, but almost half (44%) are happy for companies to communicate via social media. 85% prefer communicating with brands via text or an automated system, meaning the typical credit union language promoting in-person, “high touch” service (which is attractive to older generations) is not as important for them.
Obstacles To Home Ownership
Despite their strong desire to have a place of their own, there are significant barriers the generation struggles to overcome.
The rising costs of higher education, uncertain job security, and less time spent in the workforce make it more difficult for Gen Z to get a grip on their personal finances. After paying for rent, food, and transportation, most only have 1.9% of their income left to their disposal. This also makes saving for a down payment quite difficult. Couple all of this with higher home prices and interest rates, Gen Z may need your help figuring out how to afford their first home.
Despite all of this, mortgage applications aren’t slowing down. In fact, mortgage applications increased by 9.7% on a seasonally adjusted basis for the week ending on March 1st, 2024, indicating that there is a lot of opportunity within this demographic.
Communicating With Gen Z
Passion is one of Gen Z’s defining characteristics. They are experts at distinguishing between the sincere, and the charlatan. To stay relevant with Gen Z, you’ll want to highlight your purpose, vision, and mission.
They’ll be excited to learn how committed you are to their financial well being, but they also want to know your commitment to the issues they care about. If your credit union is involved with any form of charity, or promotes social causes, be sure to tell Gen Z about it.
The best way to capture their attention is through video. Short, informative content that lets them know you care will be most appealing. Topics like how to save for a down payment, why they should get a mortgage from a credit union, and what their mortgage options are may resonate well with them.
One last important factor to consider when talking with Gen Z is that their parents (most likely Millennials and Gen Xers) are still in the picture. Living with mom and dad instead of renting is a great money-saving strategy, and as such, their parents may have a lot of influence through their home buying journey.
MAM Was Built to Support Gen Z
Since 2006, MAM has supported credit unions to guide every generation of homebuyer through the mortgage process.
- Our employment of proprietary technology, like our microsites and interactive calculators, addresses the younger generation’s tendency to rely on technology early in the homebuying process.
- The commitment from our seasoned mortgage specialists provides personalized, human-to-human support to let Gen Z (or any member) know someone has their best interests at heart.
- Our wide diversity of options helps members find the right mortgage programs. We offer first time homebuyer-friendly programs, designed for members who need a reduced down payment requirement, and some compassion over past credit history situations.
On top of that, we are constantly developing new products and messaging to promote your credit union’s brand to all of your members, both today—and in the future.
No matter which generation your credit union aims to serve, MAM can help.
For more information about partnering with MAM, please reach out to Jim Mitchell at (616) 466-7793 or [email protected].
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Who Is MAM?
Member Advantage Mortgage (MAM) is a Credit Union Service Organization (CUSO) that helps credit unions increase revenue by offering mortgage solutions to their members.
We achieve this by finding the mortgage solution that is in each individual member’s best financial interest.
What We Do
Since 2006, MAM has offered first and second mortgage origination and fulfillment services to credit unions. We also provide marketing tools (like our Mortgage Payment Calculator) to increase lead generation.
How We Can Help You
We’ll help you improve member satisfaction and deepen member relationships by offering or streamlining your mortgage delivery process. You’ll be able to serve current members so they don’t need to turn to the competition, all while increasing your mortgage revenue and generating non-interest income.
How You Can Learn More
This page goes into greater detail on exactly how we provide support and partner with credit unions.
You can also call Jim Mitchell, our Senior Vice President of Strategic Partnerships, to get answers to any questions about partnering with MAM.
Disclaimer:
This information is solely for credit union and mortgage professionals and should not be distributed or provided to consumers or the general public.
This is not an offer for extension of credit nor a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Certain restrictions may apply. All approvals subject to underwriting guidelines. Not all applicants will qualify. Member Advantage Mortgage, LLC is an Equal Housing Lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.
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