With mortgage rates at an all-time low, many Australian consumers still plan on buying a home – despite rising house prices. In the next 12 months, over 1.7 million Australians intend to buy a property and 79% of this group listen to commercial radio each week.
These are the findings from the latest report from Nielsen and Commercial Radio Australia (CRA), which illustrates that the dream of owning our very own ‘¼ acre’, while expensive, is still on the agenda for many Aussies.
In the next 12 months, 1.5 million Australians intend to buy a home to live in – almost half (47%) of these are First Home Buyers. Property investors account for 446,000 Australians; while over 200,000 intend to buy both a residential and investment property. Clearly, it is still a very motivated market.
MOVING IN WITH THE HOME BUYER AUDIENCE
Home buyers are made up of distinct segments, important to real estate advertisers and marketers when planning communications.
First Home Buyers
This group is younger than other buyer groups. They have a lower personal and household income and currently reside within larger sized households – indicative of those in earlier stages of their career and those starting new families. They’re engaged with radio – they trust ads with a radio personality and like ads with the same ‘feel’ as the station they’re listening to. When they do buy a home, it will most likely be to upsize from where they live now.
Other Home Buyers (those buying for the second time or more)
This group is older. They have a little more income and currently reside in slightly smaller households. They’re less trusting of advertising – but when they do hear from advertisers, they want information and the price. When they do buy a home, it’s an even bet across upsizing and downsizing.
Investment Property Buyers
This group is different again. They’re mostly male, with significantly higher income and heavily skewed to white-collar occupations. They, too, live in larger sized households. They listen to the radio on the way to work and love ads with price and information. Financially, they’re in good shape. They save for the future, and when investing – which they’re more likely than other groups to do – they seek professional help.
So what role does commercial radio play in connecting home buyers and sellers with financial services providers, mortgage brokers and real estate agents?
Joan Warner, Chief Executive Officer of Commercial Radio Australia, says: “Radio is a valuable tool for reaching home buyers because consumers trust us to provide the information they need to help them through what is often a stressful process,” she said.
For most, buying a home is not easy. So it’s important that consumers are supported throughout the journey. Commercial radio is ideally placed to fill this role by connecting consumers with the information they need and, most importantly, connecting advertisers with ready-to-buy consumers.
Nielsen Holdings plc (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy.
Nielsen's Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content — video, audio and text — is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry's only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance.
Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90 percent of the world's population. For more information, visit www.nielsen.com.