Social Media's Affect on the Housing Market
How Social Media Is Changing the Way People Buy and Rent
The internet has changed several aspects of a business. To thrive, many businesses need to have websites, blogs, online ads, and social media accounts. The real estate industry is no exception. With many people spending their time on social media platforms like Facebook, Instagram, Twitter, and TikTok, real estate agents need to meet the target market where they spend their time.
According to research from the National Association of Realtors, 77% of realtors use social media as a part of their business, and for a good reason too. Many realtors find that social media is a great place to post quality pictures of properties, create relationships with potential clients, and drive traffic to their websites. In short, social media is changing the way people buy, rent, and interact with the real estate industry — for buyers, sellers, and real estate agents alike.
These days, selling your house without the internet or social media puts you at a severe disadvantage. Homeowners who are trying to sell or rent their homes themselves can use social media as a tool for finding potential buyers and tenants.
When looking for rental properties, many people turn to resources like local Facebook pages. Landlords can use these groups to post about their properties, answer questions, and directly message interested parties. The same goes for homes that are on the market.
If you are a real estate professional, then using social media isn't just about selling the house, it is about developing an online presence. Real estate agents who post on social media can find buyers by posting about for-sale homes, but they are also able to find future clients by posting a wide variety of helpful tools, beautiful pictures, and entertaining media. You can post anything from a glam room to new construction homes to buy to boost your social media engagement for leads.
Another powerful benefit of using social media is that you are better able to speak with your target audience. Choosing the right platform, style, hashtags, and language can put you in front of your target demographic. Of course, some real estate agents may prefer certain platforms over others, depending on their expertise and their desired target audience.
Most Popular Platforms for Realtors
According to the Pew Research Center, 82% of people ages 30 to 49 years old use at least one social media platform. The most popular platforms they use are Instagram and Facebook. These two platforms offer different benefits for realtors.
For one, real estate agents can create Facebook groups for people interested in homes for their area. These groups are a valuable resource for anyone starting a business and looking to grow their client list. The more the realtor posts content related to home improvement, realty, home buying, and other important topics, the more the group members will see the realtor as a trustworthy expert and will want to work with them.
Although you cannot make groups on Instagram, you can create a stunning collection of photographs of homes that are available for sale. Realtors can post pictures of the interior and exterior of different properties, pictures of events and people in the surrounding neighborhood and town, and post short videos about their work and daily life on their Instagram stories.
Although Generation Z is barely reaching the cusp of adulthood, they shouldn't be cut out of the running for real estate agents. Young adults still need help seeing out rental properties and apartments alike, and with nearly 63% of Generation Z using Tik Tok today, this app may be ideal for real estate agents hoping to connect to this audience.
How Are Buyers Using Social Media?
In addition to connecting with real estate agents, buyers can use social media for word-of-mouth marketing. If someone tells their friends they are looking for a house, then they may receive several messages over the next couple of weeks with pictures of available houses, links to information about trusted real estate agents, and their friends' preferences for neighborhoods in the area.
Social media also offers another method of communication for potential buyers. Buyers have better access to information by connecting with their friends, community, and realtors through social media during the home-buying process. They can also find all of the realtor's contact information on their profile page, and they can also send realtors direct messages through their chosen social media platform.
How Is This Affecting the Housing Market?
Social media is an incredibly powerful tool for realtors and home buyers. It can affect home availability, housing prices, and the ease with which realtors can reach their target audience.
Availability
Although there are plenty of reasons behind the housing market being as competitive as it is today, social media certainly plays a role. For one, the massive spread of information and shareable listings has led to more intense bidding wars over available properties. The National Association of Home Builders reported in 2021 that 45% of potential home buyers cited bidding wars as the biggest challenge in their effort to buy a house which has only been exacerbated by homeowners buying houses sight unseen.
Price
Working in tandem with a seller's market and the prominence of social media, these bidding wars often drive up the prices of the homes in question. Additionally, social media can be used to draw interest in a specific city. An influx of people moving into that city because of its popularity can also lead to housing market increases.
Target Audience
As stated before, nearly 82% of people within their thirties and forties are on at least one social media platform, which also happens to be the prime first-time homebuyer age. Just like the proverbial question, "What came first: the chicken or the egg?', it's impossible to say whether social media is driving these homebuyers to real estate agents or vice versa, but either way, agents are taking this opportunity to use social media to their advantage.
Is Social Media the Future of Realty?
Social media has taken over the internet in the past two decades. While it is impossible to say that any single social media platform is the future of realty, it is reasonable to estimate that social media as a whole will have an incredible impact on the real estate industry in the near future.
While the platforms may change, the drive for online social interaction does not seem to be shifting. If realtors can stay up to date, be willing to try new platforms and keep up with current trends, then social media can continue to be a valuable tool within the real estate industry for years to come.
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!
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