Social media’s allure may be doing more than just spurring people to “like” this and “favorite” that. It may also be helping to create homeowners. That’s according to a news story with data from Bank of America’s 2018 Homebuyers Insights Report.
Social networking sites like Facebook and Instagram are influencing young adults to buy homes, according to CNBC.com. The craze is part of the phenomenon called FOMO (fear of missing out), the report says. Millennials now make up 65% of all first-time buyers, according to a survey by the National Association of Realtors (NAR).
Report: Social media pics spurring home ownership among millennials
“I think it’s motivating them to think about homeownership,” says D. Steve Boland, head of consumer lending for Bank of America, told the financial news site. “Their interest level is high and it’s driven by what they see.”
Bank of America’s report highlighted that a third of millennials, along with 27% of all first-time buyers, agreed with the sentiment, “If they can buy, why can’t I”? While 21% said that FOMO was a motivating factor for homeownership.
The news comes on the heels of another report that says that the U.S. homeownership rate increased in 2017 for the first time in 13 years. The rise was attributed almost wholly to millennials, many of whom are toughing it out in a brutal home market with rising prices in most of the country.
While the report doesn’t mention social media, it’s a known fact that companies spend big money on Twitter and the like because engagement can be converted into dollars. In other words, it works. #NoFilter
A RetailDive study found that 72% of millennials say they bought fashion and beauty products based on Instagram posts, so it’s not a stretch to believe that there could be some influence on home buying, as well.