How To Take Advantage Of The Lowest Birth Rates In 100 Years


Something interesting that you might find surprising that it relates to real estate, but fertility rates in the US have gone down dramatically over the last hundred years. In America today, we've actually had another 1% decrease.

We have the lowest birth rates than we've had in a hundred years.

Here are the numbers:

For every 1000 women in America aged between 15 and 44, there's 58.3 births. And you compare this to World War Two, when all the baby boomers were born, that number was more closer to 140 births! So huge difference in the numbers.

Now, how does this relate to real estate? I'm going to share with you now. Here is the the data today:

Looking at buyers who have children under the age of 18 in the home, the share of that group has declined from 58% in 1985, all the way down to 33% in 2020. So there's a much smaller group of people buying homes. It's actually the minority, not the majority, who have kids under 18 at home.

So you need to start asking the question if you're not already asking it saying:

"Hey, can I ask you a question? Do you still have kids living at home? And will that be an impact in your decision-making?"

Because if they do have kids, it does impact their decision. And if they don't have kids, it impacts their decision. Let's look at what is impacted most:

So for parents:

  • 49% rate quality of the neighborhood or school district as a high priority
  • 49% rate convenience to schools (or how quickly you can drive to them) as another high priority
  • 19% say the top reason to buy a home is for more space.

And typically the homes they're buying are a four bedroom, 2200 square foot home. Now it can vary in different markets, different families, of course, but that's the median.

Now for non-parents look at the drastic change:

  • Only 11% rate school district as an important quality when buying. They really don't care that much unless they're thinking about it for future resale.
  • Only 7% rate convenience to schools as important. Of course, they're not taking kids to school!
  • Only 6% are motivated by more space — meaning 94% are not.

And the typical home non-parents are buying is a three bedroom, 1800 square foot home.

So massive differences.

Now, when somebody says to you, I don't have kids at home. What's your follow up question? Your follow-up question is:

"Oh, okay, great. So do you have any pets?"

Because pets are massively important! You see, the millennial generation has a different set of priorities than previous generations. They rate their pets as one of the highest priorities when they're buying a home, if not the highest priority. So pets are number one and you want to make sure you are addressing the pet issue. Not that other generations don't care about their pets, but millennials especially do. So you want to address that and you can do so by asking this question:

"Well, how important is the home compared to how your pet is going to live in the home? Do you want to look at some of those aspects? Is that important to you?"

They're all going to say yes. Right? So ask those questions!

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