silver tsunami
Issue 96 - August 12th, 2022
"Over the next 20 years retiring baby boomers will be exiting the workforce in droves AKA the 'silver tsunami.' Boomers own 66% of all businesses with employees in the U.S., and retirement will cause the transfer of trillions of dollars in business assets."
Focusing in on the real estate industry around this similar topic provides some interesting insight (stats from National Association of REALTORS):
The typical REALTOR® is a 56-year-old white female who attended college and is a homeowner.
66% of all REALTORS® are female, and the median age of all REALTORS® is 56.
The median agent age skews higher than I would have guessed, but this screams as a potential opportunity for younger agents who are just entering the business and also for new ways of doing business in our industry.
The older tenured agents can work well into their later years but the median age of 56 years old presents opportunities for those just getting out of college or in their 30’s and 40’s to fill the gaps left by these more seasoned agents.
Residential real estate has always been fascinating to me because when you take a second to think about it, every single person you know needs a place to live whether they are leasing or buying a home. You have an easily accessible customer base if you are willing to work hard to find clients. You can focus in on a certain neighborhood, a certain friend group, a certain type of property, and so many other areas of focus to find customers. The ball is in your court to do the work, but when I started my career I just started out helping my friends and lacrosse teammates find places to lease around SMU campus. It was the most fun job on the planet, and I am still in this industry today.
Younger agents have incredible opportunities to partner up with older agents to learn the ropes and also help on deals where these more seasoned agents may not have adequate time and won't work every deal. Older agents can learn from younger agents to keep up with trends in tech, tools, and popular housing options for younger generations.
As the “silver tsunami” continues to roll forward across all industries in America, there has never been more opportunity for those early in their careers whether in real estate or otherwise. As the baby boomers start to exit the workforce, others will have to step up to fill this massive gap but to me this presents incredible opportunities to buy businesses, build new business, and find opportunities in your current business.
Let’s GOOOOO!
Newsworthy Links To Share
Lofty AI is making it possible for anyone to become a real estate investor – as long as they have $50 to spare. The Miami property technology startup aims to lower the barrier to entry for real estate investing by making it possible for users to purchase a fraction of U.S. rental property, even if they don't have the money for a huge down payment. … Chu said his own experience as an aspiring real estate investor inspired the creation of Lofty. (Miami Inno)
“The dumbest s___ ever” - Mark Cuban thinks that metaverse land and real estate are pretty stupid, and he told Altcoin Daily. His main contention isn’t that the metaverse isn’t ready yet, but that you can’t artificially introduce scarcity for digital real estate.
The same gateway metros that saw the most money outflows in 2020 and 2021 are now leading the CRE rebound. Greater NY took the top spot with $67 billion (up 104.3% YoY), followed by Greater LA with $65 billion (up 61%), then Dallas-Fort Worth with $50 billion (up 91.9%), and Atlanta with $40 billion (up 88.3%). San Francisco rounded out the top 5 with slightly less than $40 billion (up 44.4%). (CRE Daily)
Last week, former rivals Opendoor and Zillow announced a partnership to provide Opendoor's instant cash offers to Zillow's audience. Why it matters: This is a big move for both companies. It reaffirms the continued relevancy of iBuying, gets Zillow back into the seller lead game, and gets Opendoor access to its largest customer acquisition channel yet. But, why: It's a match made in lead gen heaven. (Mike DelPrete)
An abrupt halt to the pandemic housing boom has left builders that started construction months ago struggling to adapt. The US supply of new homes relative to sales in June was the highest since the midst of the last crash in 2010.
Wild swings in mortgage rates last week caused a rare surge in refinancing: The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.47% from 5.43%, with points rising to 0.80 from 0.65 (including the origination fee) for loans with a 20% down payment. While the weekly average didn’t change much, daily moves were more dramatic. (CNBC)
SoCal’s luxury market is heating up as Rosewood Hotels and Resorts announces plans for a 17-unit, $100 million boutique condo complex featuring butlers, private pools, and a five-star restaurant, among other perks. (LA Times)
PROPERTY HIGHLIGHT: 56 acre private island in Georgia - “Patterson Island” - Patterson Island is a 56+/- acre PRIVATE ISLAND located near Historic Downtown Darien along the Georgia Coast. The island is situated to the West of Sapelo Island and provides gorgeous views of the coastal salt marsh in a private setting for you to enjoy. Patterson is accessible by water and has a private floating dock on the south side of the island, it is also accessible by plane via the private registered airstrip. To help make getting too and from your island more convenient by boat, the island is being sold to include a 1 acre lot on the mainland only minutes away that also features a floating dock.