Do Marketers & Real Estate Agents forget Them?
In the US labor market, I studied different profiles that mark current and future trends in the sector. Although these studies are of exceptional interest for human resources departments and people related to the development of the professional careers of workers, we must not forget that they are also a reflection of the social, economic and labor situation of the whole country, and ultimately, the developed world.
Apart from the Millennial phenomenon, so often named and researched in-depth, other aspects deserve all the attention.
There is a work profile that is extremely interesting: “The Elite Worker” as I call them, and that presents a change of trend in many aspects. And no, it’s not about young people under 30 years old. This time, the revolution is characterized by a higher age range: between 40 and 65 years old, and with a high purchasing power, fruit of their labor competence.
Who are these Elite Workers and what makes them different the “average”joe?
The following dissertation is based on a study of several American banks, in which we are presented with various figures related to a certain profile of workers whose income per family unit exceeds $ 374,000 USD per year on average.
This high figure reveals a set of characteristics that distinguish a type of worker that is certainly worth knowing.
In the study, it is inferred that the characteristics of these workers have several common factors, and it is of maximum interest to take them into account for all types of activities: marketing, consulting, market studies, prospecting, human resources, economic forecasting, economic analysis, etc.
In short: it is a group of workers whose knowledge can be beneficial in various facets.
In this article, I will describe these high-income profiles, their characteristics, thoughts, trends, and style. Integrating them into our project could make a very positive difference in it.
Who are these workers with elevated incomes?
When segmenting the group of workers, a scale of income per family unit can be established if we want to stratify them for their study.
If we set the bar at $ 374,000, we discover this profile:
- The average income per family unit of $ 374,000 per year.
- Age range between 41 and 63 years on average.
- Average investment assets between $ 750,000 and one million dollars.
Their most common characteristics correspond to a stable marriage with children, in positions that require specialized training, who have no problem traveling and working in other countries, and have an appetite for highly developed technology.
*This is my family*
The first surprise is, precisely, the latter. Much has been said that Millennials are the “generation of technology,” but this is a biased statement. It is not necessary to be born in the last decade of the twentieth century to understand, use, and love the advances of the digital world.
Perhaps, before entering fully into the study of the profile of high-income workers, we should inquire into the origin of this demographic group.
It is very possible that the deep crisis that we lived 12 years ago has much to do. If we look at the age range (41-63) and subtract 12 years, it would be at (29-51). Corresponds to young or recently settled parents, usually with mortgage debts, in the process of economic and labor consolidation (if we focus on the low band).
This upheaval caused many people to fear to lose their jobs and property, and the ghost of a dark future was for some an engine of efficiency and tenacity.
So, over the years, a constant worker develops, with a much more conservative and long-term oriented investment (no experiments), which values knowledge and professional skills (which adapts them very well to competitiveness).
Let’s learn to recognize this group:
1. Job profile
One of the aspects that high-income workers that we are studying have in the comment is many numbers of weekly hours they dedicate to work in front of other groups.
While the national average is at 38 hours per week, they can easily reach 50 hours. 63% think that the rich source of income comes from dedication and hard work as the only success factors, and not so much from their skills and talents.
Most do not consider retirement as a goal that signals the end of their working life, or at least; they try to delay it as much as possible. 13% say they have no intention of ever retiring.
The professions they perform are usually related to health, financial, science, and technology, engineering. A high level of training and specialization are a vital part of the profile. They are more likely to work in a FORTUNE 500 company than another worker, and they tend to hold managerial or highly technical positions.
They use technology intensively to develop their work, less pragmatically, and socially than Millennials.
Also, statistics show that men and women in the family unit are more likely to work, compared to the average household in the country.
They also have greater ease to travel and even establish themselves if necessary in other countries if the company so requires. They have adapted perfectly to carry work under the arm (laptop, tablet …) and move well in international environments.
As we can see, the profile shows a logical consequence of the economic instability of 12 years ago. The need for job stability and increased income is above other considerations, such as the availability of free time or the realization of personal dreams outside the workplace.
In this aspect, a difference with other demographic groups is observed.
2. Economic profile
As we have already understood, the elite worker is a person who is committed to their economic goals and puts many hours of his life at the service of them. They have enviable average investment assets, which can reach one million dollars. 69% prefer a safe, conservative investment. It is not surprising that this figure increased dramatically after the crisis of the past decade.
His or her refuge in high-value real estate investments and security marks are the main agenda, followed by traditional resources. Precious metals are only interesting for 27%, or currencies, something that only attracts 18%.
In general, the real estate sector is the most favored by elite workers, along with the shares in their companies and the stock market. The value property as a critical economic factor and this is widely reflected in their financial actions.
Due to their attitude towards investment and work, and the results obtained in this last decade, optimism is part of the economic philosophy of the demographic group. In general, the current financial situation seems right to them, and they consider that it will improve during the next twelve months.
The Elite Worker is a very important demographic for the real estate sector!
It is estimated that 1 in 3 high-income workers will acquire real estate in the next two years. It is a very significant fact, and of course, very much in line with what we have seen so far. The opportunity is on the table!
Regarding consumption, due to the optimism of improvement and stability, they tend to spend with confidence. As targets, they are characterized by looking for safe and future options. They have no problem in acquiring a second or third residence, even with a view to retirement.
They do not intend to sell their current home to go to a smaller one and get a return. They opt for the added acquisition.
This leads to reasonable expectations in the real estate market in the US and many parts of the world, such as the Dominican Republic. Especially in high-end properties. Not in vain, it is also a value that provides a passive income. It is consistent with the idea of long-term security of the profile. Especially with the ages closest to retirement, who see it as an excellent opportunity to increase the flow of future income.
So we can understand that real estate is significant in this group. You just have to see the figures:
- 40% have a home that exceeds $ 750,000.
- 33% want to buy a home in the next two years.
- 74% declare that they will maintain their main home for at least another decade.
- 58% have helped a child with the mortgage down payment.
When making economic decisions, most (64%) recognize that both members of the couple participate in decision-making, although higher incomes break that trend a bit.
This also gives us an idea of the shared responsibility of the profile when deciding acquisitions and budgets. Let’s take it into account.
3. Social and psychological profile:
When they selected their profession, 50% said that they were guided by their interests, and only 23% did so for economic reasons. That is, they did not really “look” for the most lucrative profession. Although this data may indeed have a bias that must be taken into account: their careers began in most cases before the 21st century.
The probability that they work in a FORTUNE 500company is three times higher than that of another worker. Obviously, his attitude has a consequence. Their work ethic is strong, precisely because of the search for safety, they are reliable workers. His professional development is solid and constant.
In the technological aspect, this profile is an accomplished enthusiast. It has integrated the advances in telephony, computer science, home automation, etc. very well in your daily life and work environment. They adapt perfectly to the new tools, although they live technology in a much more pragmatic and instrumental way than the younger generations, who have adopted them as a natural environment.
This means that elite workers do not yet fully trust economic management and investment applications because they do not consider them to be sufficiently secure and prefer a more real-world approach . But do not think that they do not operate over the internet. Payment of bills, online purchases, etc. they are something habitual and integrated into the home. And precisely because of their purchasing power, they tend to have the latest gadgets and devices
Undoubtedly, we are faced with an exciting group of workers with defined characteristics mostly coinciding with a pattern that has its origin in the environment
circumscribed at the beginning of the millennium, and that now have an acquisition capacity to take into account.
They are especially crucial in the real estate sector since both they’re economic, employment, and social/psychological profile favor the acquisition of housing.
His way of looking at the labor, economic, and social market has a substantial impact on multiple aspects of American society, marking a trend for the immediate future. Recall that 33% contemplate the possibility of acquiring a property in the next two years and that they are also prone to enhance their assets.
On the downside, the lack of time for your dedication to work has inevitable consequences. For example, although they are accustomed to managing their work environment, they do not have as much experience in managing their investments and assets, being little given to hiring the services of specialist advisers. This means that the yield they can obtain from their real estate acquisitions is not as efficient as it should be, something that aggravates their self-confidence and optimism, and the little use they make of financial management applications and technology.
A detail that goes in this line is the fact that, when choosing your home, put forward aspects related to comfort versus the value of the investment. It is more important than the house that suits your lifestyle.
It is inferred, therefore, that if the value of real estate resources is properly communicated as a source of wealth, an important component of their liquidity and credit, they can make much more strategic financial decisions, which is a long-term benefit term of your portfolio.
What is a Very High Net Worth Individual?
A Very High Net Worth Individual is defined as someone with over $5 million in liquid assets. And if that’s not enough? Well then we can go richer. Pinky’s out!
What is an Ultra High Net Worth Individual (UHNWI)?
When “very” just isn’t good enough, you gotta go “ultra.” In the banking world, that means having over $30 million in net worth*.
If you are interested in real estate as much as I am and are looking to make a smart investment that will return cash from day one of an operation email me and learn how to invest in the Dominican Republic Real Estate and hotel business [email protected] (let’s more productive together)
Edward De Valle II
Managing Partner and Acting CEO