LUXURY REAL ESTATE MARKET COMING OF AGE WITH YOUNGER BUYERS

There is an emerging trend in the luxury real estate market place.  It is a kind of “coming of age”, as in the age is coming down.

A new survey by the Luxury Institute finds that wealthy younger buyers are driving the luxury real estate market and are paving the way in a changing market place.  And, the bonus for luxury home sellers is that they are willing to pay more than similar wealthy buyers age 55 and older.

 

According to the survey of Americans age 21 or older with a minimum gross annual household income of $250,000, 43% of younger wealthy consumers are considering the purchase of residential property in the next 12 months, compared to 21% of those age 55 and older.

On average, these younger wealthy consumers spent more than $2.1 million on their most recent purchase of residential property, approximately twice the average amount spent by older and similarly wealthy luxury buyers, which was $1.1 million.

 

These young luxury buyers are leading a change in desired home amenities, whether they have young families or are single without children…they are looking for homes that fit their active and unique lifestyle.  Younger buyers are significantly more likely to want homes with amenities such as a pool, outdoor kitchen, home gym, home theater, wine cellar, and three or more garage spaces.

For the majority of luxury buyers, location is the most important factor when considering the purchase of resident property.  However, nearly one in four have the freedom to choose a property anywhere.  The Young luxury buyers have more freedom to choose a residence that truly fits their lifestyle and will not limit their search based on location.