Are millennials purchasing luxury real estate? Despite the stereotype of typical millennials being too financially dependent or unstable to be homeowners, recent reports from Luxury Portfolio International and Beauchamp Estates show that a younger demographic makes up a substantial percentage of luxury home buyers. These reports have found that due to the steady increase of wealthy families in recent years, the younger generation from these affluent families are now inheriting wealth and searching for high-end real estate of their own. And these millennial home buyers are changing the market with their preferences and demands.
Real estate professionals say that millennial buyers tend to do extensive research about the housing market and that they typically come into the buying process knowing precisely what features they want in a home. Not only are they searching for homes over 5,000 square feet, but they require all of the latest state-of-the-art finishes such as modern security systems and professional kitchens. In many cases, they are looking for move-in ready homes set up with smart technology and high-end amenities like pools, gyms, and valet parking. They are also very frequently in search of these homes in urban locations, which are often incredibly competitive due to the soaring demand.
However, some high-end millennial buyers are also gravitating away from urban city centers toward land lots in neighborhoods on the rise. They are looking for communities that will provide them with a safe and secure lifestyle, while still giving proximity to important destinations. Younger buyers tend to be incredibly specific about what they want in a home, and they are not willing to settle for less. If moving to a new, developing neighborhood will allow them to find exactly what they want, they are willing to pay top dollar–or above–to have it.
This generation of affluent young people is steadily invigorating and changing the American luxury real estate market. This generation is unlike any other previous generations when it comes to tastes and buying patterns. What does all of this tell us? One can be sure that as more and more wealth continues to flow through this top tier of wealth in this country, the luxury market will continue to heat up as well.