Key Findings Include:
- Women account for 54% of luxury homeowners under 35, indicating a significant female presence in the purchasing of luxury real estate.
- Younger luxury homeowners (under 35) prioritize eco-luxury, legacy values and digital platforms more than middle-aged (35-64) homeowners.
- Ninety-one percent of luxury homeowners across age groups are considering making additional investments in real estate, but younger homeowners are more than likely to reduce their overall investment in real estate for diversification.
- Younger luxury homeowners value social responsibility and brand-name recognition more than middle-aged homeowners.
The luxury real estate market is complex and multifaceted, with some segments witnessing strong demand and growth while others face stagnation or overvaluation. Considering these fragmented conditions, alongside external factors such as high inflation, rising interest rates and a volatile stock market, it is crucial for industry professionals to comprehend the evolving preferences and expectations of luxury home buyers.
The luxury real estate market is undergoing a significant transformation, driven by the evolving preferences of younger affluent buyers. This demographic shift has brought about changes in gender distribution, with women now accounting for 54% of luxury homeowners under 35 years old. Younger luxury homeowners are increasingly focused on sustainability, social responsibility, intergenerational wealth preservation and technology.
Younger luxury homeowners are increasingly focused on sustainability, social responsibility and intergenerational wealth preservation. Technology plays an essential role in attracting younger luxury homeowners, as they are more likely to rely on digital platforms for information and decision-making. Both younger and middle-aged luxury homeowners value trust in real estate agents and appreciate personalized experiences and superior customer service.
EARLY WEALTH ACCUMULATION Today’s young professionals often accumulate wealth earlier in their careers, thanks to booming industries such as technology and finance. High-paying jobs in these sectors enable younger individuals to save for substantial down payments, expediting their path to luxury home ownership.
INHERITANCE AND FAMILY SUPPORT Some younger luxury homeowners receive financial assistance from their families, either through inheritance or direct support. This can provide a leg-up in the competitive real estate market, allowing them to purchase luxury properties sooner than they might have been able to on their own.
INVESTMENT MINDSET Younger generations are increasingly aware of the value of real estate as an investment. They may prioritize home ownership over other expenditures, such as travel or luxury goods, viewing property as a long-term asset that can appreciate over time.
REMOTE WORK OPPORTUNITIES The rise of remote work has given younger professionals the flexibility to live in more affordable areas while still earning high salaries. This has opened new possibilities for luxury home purchases in desirable locations that were once out of reach.
Source: (SOLRE) RESEARCH REPORT