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, 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 percent of younger wealthy consumers are considering the purchase of residential property in the next 12 months, compared to 21 percent 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 younger 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 four or more garages. Less importance is placed on staff quarters, tennis/sports courts and separate catering kitchens. For majority of luxury buyers, location is the most important factor when considering the purchase of residential property. However, nearly one in four have the freedom to choose a property anywhere. The younger luxury buyer have more freedom to choose a residence that truly fits their lifestyle and will not limit their search based on location.
Luxury Market Coming of Age With Younger Buyers
September 25, 2013 By