“A diverse mix of voices leads to better discussions, decisions, and outcomes for everyone.”
Sundar Pichai | CEO | Alphabet

The New Normal is here, and to us, it feels more and more like we’re in The Big Reset. Our development clients are gearing up for a busier Q3 + Q4; which requires that Butterfly Voyage’s (BV) perspective includes our extensive experience, yet that perspective must be equally balanced with new thinking that challenges the status quo. This month, we’re focusing on making diversity less of an uncomfortable word in new development and providing some insight + thought-starters.

We were inspired to create BV to solve the problem of a lack of diverse perspectives that led to formulaic design and marketing efforts. This is driven by the lack of minority perspectives in our industry. Our founder is a minority woman who knew that one of the best ways to command an impactful seat at the table was to start her own company.

Additionally, we’ve experienced and observed too many instances where development was conceived, designed, and executed by a room of people who mostly looked the same. That approach does not allow for the diversity of the varied perspectives, and design + lifestyle approaches that are necessary to appeal to an increasingly diverse group of customers.

That lack of diverse appeal results in developers experiencing their product taking longer to sell or rent, marketing firms seeing their staffing costs exponentially increase, and most importantly customers + agents resigning themselves to an undifferentiated product. These developments would have also benefited internally from the strategic thinking that comes from having diversity within their teams. Diversity + inclusion is not about just making a difference, it is also about our collective responsibility while making smart business decisions.

Not only can we do better, but we need to do better. These things are not mutually exclusive. Let’s discuss why below.

01
Your Bottom Line

The business case for diversity-focused teams and marketing is more relevant to your bottom line than ever before. Our industry still produces the #1 thing that everyone who is fortunate has - a home. Who lives in those homes? People. All kinds of people, who are all kinds of diverse.

Whether New York, San Francisco, Austin or Chicago, the demand for our product is driven by the desire for an urban lifestyle, which is synonymous with diversity of all kinds. These locales often offer welcoming environments to successful people of all colors, sizes and shapes.

Let’s explore the purchasing power and insights into just a few of these diverse consumer groups.

Women
Single women own more homes than single men. By 2028, women will be the world’s greatest influencers and own 75% of the discretionary spend market.
Nielsen | Wise Up To Women | March 2020

LGBTQ
LGBT earners have tremendous purchasing power and want you to market to them. The National LGBT Chamber of Commerce (NGLCC) recently shared that LGBTs have $917 billion in buying power, on par with larger diverse groups. A recent report from the Tax Policy Center shared that gay male couples had a 40% higher income than straight couples, and lesbian couples were slightly ahead of these straight couples. Gay couples with children had an average household income of $264,000 which is double that of lesbian and straight couples.
NAGLREP | Annual Real Estate Report | March 2019

Asian
Asian Americans are a galvanized group (the fastest-growing multicultural group in the U.S.) with a buying power of $1.2 trillion.
Nielsen | Marketers It's Time To Engage Asian American Consumers | May 2020

Black
Black home-buying purchasing power needs to rise, even though their consumer purchasing power is increasing significantly. Black consumers command $1.3 trillion in annual buying power. The systemic discrimination + obstacles in the path to Black homeownership need to be acknowledged.
Nielsen | Black Consumers’ Path To Purchase | 2019

Latinx
By 2023 the buying power of the United States Latinx population is expected to top $1.9 trillion, which is higher than the gross domestic product (GDP) of countries like Australia, Spain, and Mexico. Latinx consumers—the youngest minority group, with a median age of just 28—are swiftly approaching their peak earning years, accounting for 75% of all U.S. labor force growth over the last six years.
Nielsen | La Oportunidad Latinx | September 2019

Millennial (not that young anymore)
Millennials are significantly more diverse than Boomers. They make up the largest share of home buyers at 38%, with older Millennials at 25% and younger Millennials at 13% of the share of home buyers. Millennials are a larger generation that is significantly more diverse and demands more from companies that they purchase from than Boomers. Millennials have a different approach to family life, via this study from the Pew Research Center.
National Association Of Realtors | Generational Trends Report | August 2019

GenZ (coming in fast)
GenZ will probably change the world more than Millenials, and they are more likely to prioritize homeownership. They are the most racially and ethnically diverse yet, and arguably the most vocal. GenZ is even more diverse than millennials.
Zillow | GenZ Home Ownership | December 2019

For new development, that means decision-makers and their priorities are evolving, which is going to be reflected in where potential customers spend their money and what they choose to spend it on.

01|Discussion Starters

How well do we truly (and in-depth) understand our diverse customer demographics + psychographics?

What brands are our potential customers investing in and why?

How can we be inspired by those brands + their values to build a diverse product?

Have we examined the lenders that we work with to ensure that they are treating all qualified potential customers equally?

Who are the design + marketing collaborators that we need to work with to build a development for a diverse customer base?

How on earth are we supposed to find qualified, talented, and diverse collaborators to enhance my development team?
(Butterfly Voyage, obviously)

02
What Your Customers See Now

Now, put yourself in your customer’s shoes. Pick any five new development websites that come to mind (we’ve looked in-depth at hundreds). Open their websites. Look at them through the eyes of understanding the impactful metrics we outlined in the above section. Now, answer:

How many times are women shown as decision-making customers?

How many times are women rendered or photographed as objects dressed in ball gowns or prom dresses?

How many people of color who are not the staff can you count in the imagery or renderings?

How many people of color look like decision-makers?

How many people are LGBTQ?

How many people are not thin?

How many people look like you?

How many offerings feel outdated + formulaic given today’s world?

We can’t say how important inclusive marketing is better than Google’s CMO, Lorraine Twohill did in 2018. It makes and leaves an impact rarely seeing design or content that looks like you or reflects your lifestyle when selecting your home. Buying or renting your home is such a personal decision, and often a significant investment. If you need something enough, of course, you will spend $$ on a product anyway; even if it simply checks the boxes. Yet, wouldn’t you be even more excited about your purchase, shout about it from the rooftops to anyone who will listen, and tell all your friends how fabulous this thing that you discovered is if you saw something that inherently spoke to you?

We strongly believe that new development is and remains an aspirational product - for everyone.

02|Discussion Starters

Are there enough different types of people on our team to weigh in on a development’s design + marketing?

If there aren't, how do we find those people or push ourselves to think about different perspectives?

Who on our team can be responsible for a diversity + inclusion check?

Are people rendered or photographed as objects that strongly define the space, or are they props that keep the focus on our end product?

When it comes to neighborhood-specific imagery, do we show diverse people in strong and varied roles?

Can we see who is missing?

We say it once again. Real estate development, you need to catch up to the rest of the world, and it’s watching you now. Your lack of diversity + inclusion is costing you money, and taking away the opportunities to build incredible legacies for your new development work.

A thank you to Butterfly Voyage contributor Basma Rajper. Her valuable research, insights discussion, and support were a key part of making this piece come to life.