Real Estate Investing

Faced with the impending retirement of massive numbers of baby boomers, plenty of industries are starting to get a little concerned, and real estate is no different. Rather than run the risk of realtor shortages, real estate companies are working to attract younger employees.

According to an article in the Seattle Post-Intelligencer, there is more interest now in the realtor profession than ever before. The National Association of Realtors saw its membership levels jump from about 760,000 in early 2000 to over 1.3 million by the end of 2007. The reason the workforce may be threatened is because an overwhelming percentage of that interest is coming from retirement-age workers, with an average age of 51.

Not only will the upcoming glut of retirees deprive the real estate profession of much of its workforce, it will also fuel demand. This is because many retirees in other professions will aim to downgrade their current home or “transplant” to a vacation home or retirement community.

Another reason to recruit younger workers is the networking factor, experts say. Sales jobs are all about relationships, especially when dealing with a major commodity like real estate. Younger workers move in the crowds that are making up the bulk of first and second home buyers - Generation X and Y. In fact, while the median realtor age is 51, the median age of home buyers is only 39. That’s a pretty significant difference.

The main obstacle to recruiting younger workers as real estate agents is that nobody has done it before. It’s simply not a consideration in most recent college graduates’ career plans because it’s a foreign world to them. Real estate school is a separate entity from college and the two have historically operated quite separately from each other. However, more brokers and real estate companies are recruiting from this demographic, even venturing onto college campuses, the Seattle P-I reports. All it takes is a mix of technology and teamwork - younger workers love technology and appreciate mentors.

It’s yet another reflection of the changing face of real estate. Open houses are being replaced with virtual tours. Phone calls, flyers, mailers and even e-mails are being replaced with text messaging and instant messaging. And baby boomers will soon be replaced by a younger generation, but one that values their input, experience and wisdom.