Millennial
Migration to Sacramento
Millennials are moving to Sacramento in record numbers - #3
on the top 10 cities for Millennial growth in the US. This is no accident. Millennials are moving to Sacramento for 3
top reasons: It’s popular among other Millennials, Sacramento has a relatively
low “rich threshold”, and housing is relatively low.
Popularity: It is
well-known in millennial circles (yes, they move in packs) that Sacramento is a
popular place to live. There is lots of
growth, employment, excellent schools, and plentiful recreation. Pew
Research recently did a study of all the top cities in the US. Although California wasn’t even in the top 10
states, Sacramento was 3rd on the list. 10,000 millennials moved here recently. We lost 5,600 of them and were left with a
net of 6,680.
Low “Rich Threshold”:
In the US, the definition of “rich” is an income of two times the median
income. Nationally, the threshold for
rich is $120K per year. To be considered
rich in Sacramento, a household would have to make $104,142 or more. This figure varies from city to city. Sacramento has plentiful employment and also
benefits from the migration of high paying tech jobs that are expanding here
from the Bay Area. If you wanted to
bypass the rich threshold in Seattle, for instance, you’d have to make at least
close to $150K. Sactown is sounding
pretty affordable in comparison.
Low Cost of Housing:
Typically, when people move to a new area, then rent. The average cost of rent can be a big draw or
deterrent if someone is moving to an area. The average monthly rent is
Sacramento is $1,292 – much less than Seattle’s average of $2,180 – and far
less than the average single bedroom apartment in San Francisco of $3,500 per
month!
It’s no surprise that a group of people that are known best
for their research of everything from where to get the richest cup of coffee to
who serves the best avocado toast, that millennials are coming to Sacramento in
record numbers. We welcome them and
congratulate them on their fine choice of place to reside (but we knew it all along).
For more info on millennial migration, CLICK
HERE.
Revealing Millennial Stats
A new survey by Engel & Völkers of 1,000 HENRY (High Earners, Not Rich Yet)
millennials is very revealing of their preferences and beliefs.
·
80% rely on “influencers” to make purchasing decisions. They
also said that would consider hiring one as a real estate agent.
·
When asked what makes a luxury brand, 80% cited “superior
quality”, while 64% cited reputation as the top factor. 47% of HENRYs surveyed
consider premium price as indicate of a luxury real estate.
·
98% of HENRYs surveyed said that they rely on social media or
review-based websites, like Yelp, before making a purchase.
·
Here’s the rest of the story – and it’s not on Instagram. The top factors for HENRYs for choosing a
real estate agent specifically are referrals from friends and family (59%),
reputation in the local neighborhood that there are interested in (53%), and
local neighborhood expertise (50%).
HENRYs are the next generation of homebuyers. Unlike some past generations, millennial
buyers are not “captured”, but rather they will seek you out if they feel you
are knowledgeable and trustworthy. Real
estate agents that wish to connect with them should position themselves as
trusted advisors and sources of insider information before, during, and after
the transaction.
It’s not enough to just to a good job. A lasting connection must be made to grow
your sphere of influence with HENRYs.
The magic happens when a HENRY posts what a good experience they had
after you represented them on a home purchase.
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