The top 10 cities for reverse mortgage market penetration may shed new light on marketing questions lenders can ask in capturing their target market, says a new report from Reverse Market Insight.
Drilling down to the market penetration found in specific zip codes across the U.S., RMI finds this month the top three cities representing high reverse mortgage market penetration are Opa Locka and Hialeah outside of Miami and Compton, Calif. outside of Los Angeles.
In terms of demographics, those three cities each represent populations with a per capita income more than 40% below the state average, RMI writes. This is in contrast to another city with outstanding volume overall: Saint George Utah.
Simply looking at statistics rather than individual loans, the breakdown of the top cities may beg the question of what marketing message lenders are using in the areas where they originate. Could it mean missed opportunities because a lender’s marketing message and sales approach doesn’t speak directly to the different segments of the market? RMI asks.
Other cities making the list for the top-10 markets of reverse mortgage penetration comprised Portsmouth, Virginia; Norfolk, Virginia; Washington, D.C.; Miami; Jamaica, N.Y.; Apple Valley, Calif.; and Baltimore.
In terms of year-to-date sales, geographic areas that have performed the highest for reverse mortgages are Philadelphia, Houston, Brooklyn (N.Y.) and Washington D.C.
Written by Elizabeth Ecker