Mining

for Millennials

Presented by:

Vance Edwards MGIC Marketing Program Director

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The information presented in this presentation is for general information only, and is based on guidelines and practices generally accepted within the mortgage finance industry and is not intended to be all-inclusive. MGIC makes no representations or warranties of any kind with respect to the accuracy, completeness or suitability for any purpose of the information contained in this presentation. MGIC expressly disclaims any and all warranties, express or implied, including without limitation warranties of merchantability and fitness for a particular purpose regarding these materials and this presentation. In no event will MGIC be liable for any direct, indirect, incidental, punitive or consequential damages of any kind with respect to the presentation or materials provided. All examples are hypothetical and are for illustrative purposes only. This presentation is not intended and should not be interpreted or relied upon as legal advice. We encourage you to seek advice from a qualified professional.

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Agenda

1. Who are the Millennials?

2. Why do we care who they are?

3. What do they think of homeownership?

4. The Zillow Effect

5. How do we reach them – social media

But first some facts…

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0%

10%

20%

30%

40%

50%

60%

19

81

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Source: NAR 2014 Profile of Home Buyers & Sellers, Nov 2014

First-Time Homebuyers

1% decrease = 1 million renters

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$300

$350

$400

$450

$500

$550

$600

$650

$700

$750

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Median Asking

RENT since 1988

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90%

of Millennials prefer owning to renting

Source: CNN Money, June 1 2014

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$2,090 $5,210 $5,600 $6,200 $6,100 $5,150

$36,450 $49,500

$83,760

$194,170

$277,590 $272,700

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Under 25 25-34 35-44 45-54 55-64 Over 65

Renter vs. Owner

Source: Joint Center for Housing Studies of Harvard University 2013; Dollars; 2010

Median Networth

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Generation Y or GenYers

Echo Boomers

Boomerang Generation

Peter Pan Generation

Percent of demographic married by age 28:

Baby Boomers 42%

GenXers 29%

Millennials 21%

5 million more members than Baby Boomers in 70s! 80 million strong!

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36%

Source: Robert Charles Lesser & Company, US Census Bureau

of eligible voters in 2015 are Millennials

2010 % of Nation

Eisenhowers 13%

Baby Boomers 26%

Gen X 20%

Millennials 27%

Gen Z 14%

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33.6% 35.0% 38.8% 40.5%

34.3%

0.0%

15.0%

30.0%

45.0%

Ages 45-49 Ages 40-44 Ages 35-39 Ages 30-34 Ages 25-29

Homeownership Rates

Ages reported are ages in 2012

Source: John Burns Consulting 2014

by Age Group when they were 25-29 Years Old

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Minorities projected = 7 out of 10 net new households in 2010-20

MGIC.com/social Source: USA Today, April 17, 2013

Almost 25% of Millennials bought

a home together before getting married

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More Millennials have an M.B.A. than have no higher education at all

Source: FirstClearing; Sept 2012 Source: PayScale.com

Twice as many degrees conferred in 2009 as were in 1970

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Falling Behind

$39

$42

$45 $44

$46

$34

$36

$35

$32

$30

$31 $32

$31

$28 $28

$20

$30

$40

$50

Silents (1965) Early Boomers (1979)

Late Boomers (1986) GenXers (1995) Millennials (2013)

Tho

usa

nd

s

(in

20

12

do

llars

)

Median annual earnings among full-time workers age 25-32

Bachelor's degree or higher 2-year degree/Some college High school graduate

Source: The Rising Cost of Not Going to College, Pew Research Center February 11, 2014

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FICO by Age

Source: FICO Banking Analytics Blog; June 2014

• More than half of Millennials have a score 650 or higher

• More Millennials have a score in the 750-799 range than in the 600-649 range

MGIC.com/social Source: American Reporting Company

Median FICO® Scores by State

FICO Score

Ranges

730-745

723-729

711-722

691-719

650-690

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So, where do we find them and how do we reach them?

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62%

Wireless Internet away from home

Source: eMarketer 2010 Source: ComScore Study 2010 Source: Pew Research Center

80%

sleep with a cell phone by their bed

94%

sent or received a text message

43%

texting just as meaningful as phone conversation

27%

decline in email usage

While you are evaluating them

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they are evaluating you!

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36%

of the population have adult children between the age of 18 to 31 living at home

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26%

used a gift as part of down payment

Source: NAR 2014 Profile of Home Buyers & Sellers, Nov 2014

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25%

of Millennials would move up timeline if they had access to a down payment

Source: Pulte Group May 2014

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13.3

Million households headed by Millennials in 2013

Source: Demand Institute 2013

21.6

Million households headed by Millennials in 2018

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Largest demographic to ever enter the nation’s housing market

Source: Market Watch, Jan 28, 2015

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prefer to live in suburban area

Source: Demand Institute 2013

48%

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74%

62%

35% 31%

19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Ages 18-34 Ages 35-44 Ages 45-54 Ages 55-64 Ages 65+

% of Each Age Group planning to buy a home in the next 5 years

Source: BMO Harris Bank June 2014

Opportunity in front of us

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32%

21%

6% 7% 5%

0%

5%

10%

15%

20%

25%

30%

35%

Ages 18-34 Ages 35-44 Ages 45-54 Ages 55-64 Ages 65+

Source: BMO Harris Bank June 2014

% of Each Age Group planning to buy a home in the next 12 months

Opportunity in front of us

What else?

IN THE NEXT 30 MINUTES

160,200 VIEWS

What else?

JANUARY 2010

10 MILLION

UNIQUE VISITORS

What else?

JANUARY 2014 MORE THAN 80

MILLION

UNIQUE VISITORS

What else?

JANUARY 2016

MORE THAN ?? MILLION

UNIQUE VISITORS

What else?

72%

OF REAL ESTATE BUYERS

USING THEIR WEBSITE

(PER ZILLOW)

What else?

4%

OF REAL ESTATE AGENTS

USING ZILLOW FOR LIST

LEADS

HOW WILL YOU PREPARE TO MARKET

TO MILLENNIALS?

Presented by: Scott Meerstein

MGIC Inside Source Representative

for

Millennials

Mining

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MGIC on Twitter: mgic.com/twitter MGIC Connects Blog: mgic-connects.com MGIC on LinkedIn: mgic.com/linkedin MGIC on YouTube: mgic.com/youtube MGIC on Facebook: mgic.com/facebook

• Twitter for Listening

• Rethinking Facebook

• Google + and Search

• Networking on LinkedIn

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Social media is not a direct sales tool…it is a relationship and brand-building tool

93% of customers expect companies to have a social media presence

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"While face-to-face is just as important as it ever was, now that we've got all kinds of new tools that let us tighten bonds in between those in-person moments."

- @chrisbrogan

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TWITTER

• Incorporated April 19, 2007

• 285 million monthly active users

• 500 million Tweets are sent per day

• 78% of Twitter active users are on mobile

• 60% of Millennials have a Twitter account

• 80% growth in use with 55 – 64 year olds (2012-2013)

Source: Twitter.com | Source: http://www.mediabistro.com/alltwitter/social-millenials

TWITTER FOR LISTENING

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Twitter Lists

• Organize

• Monitor

• Engage

TWITTER FOR LISTENING

Twitter Notifications

• Real-Time Alerts

• Understand Your Audience

• Stay Informed

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“Facebook was not originally created to be a company. It was built to accomplish a social mission - to make the world more open and connected.”

- Mark Zuckerberg

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FACEBOOK

• Founded February 4, 2004

• 1.35 billion monthly active users

• More than 1 trillion posts on Facebook

• +1 billion mobile users a month • Largest personal social media site

Source: Facebook.com | Source: cnbc.com

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RETHINKING FACEBOOK

Leverage the Personal with the Professional

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RETHINKING FACEBOOK

Facebook Fan Pages

• Expand Reach

• Increase Visibility

• Business Hub

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RETHINKING FACEBOOK

Facebook Fan Pages

• Brand Exposure

• Findability

• Build Relationships

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RETHINKING FACEBOOK

• Write on their Wall

…2013 – average Facebook user had 303 “Friends”

• Like a post / Share a post

• Tag local businesses in your posts

• Support business partners

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RETHINKING FACEBOOK

Why Pose a Question to Your Audience?

…Questions on Facebook get 100% more engagement

• Ask on Fan Page, on Personal Profile or via email

• Should - Would - Which - Fill In the Blank

• “Caption This Photo”

• Fun way to create easy Engagement

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“Google’s mission is to organize the world’s information and make it universally accessible and useful.” - Google

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GOOGLE+ (Brand Page)

• Incorporated June 28, 2011

• 540 million monthly active users • After Page Authority, a URL's number of Google

+1s is more highly correlated with search rankings than any other factor [High SEO Benefit]

• +40% digital marketing professionals use Google+

Source: Digital Information World | 2014

GOOGLE+ (Brand Page)

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“People don’t buy from brands; they buy from people they know and trust”

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LINKEDIN

• LinkedIn's founders are Reid Hoffman, Allen Blue, Konstantin Guericke, Eric Ly and Jean-Luc Vaillant

• The site officially launched on May 5, 2003.

• 47% of LinkedIn visits are now via mobile

• LinkedIn is the world’s largest professional network on the Internet with more than 332 million members in over 200 countries and territories

• LinkedIn signups are at a rate of more than two new members per second.

Source: LinkedIn.com

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NETWORK WITH LINKEDIN

Hobby | Profession | Community | Education | Customers

Share Knowledge

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NETWORK WITH LINKEDIN

Visibilty

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Social Media Recap

Minimal Time | Maximum Value

• Audience • Value • Goals

MGIC on Twitter: mgic.com/twitter MGIC Connects Blog: mgic-connects.com MGIC on LinkedIn: mgic.com/linkedin MGIC on YouTube: mgic.com/youtube MGIC on Facebook: mgic.com/facebook

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THANK YOU

https://www.linkedin.com/in/bensmidt @bensmidt

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