Saturday, January 29, 2022

Millennials are reshaping the luxury property market

In sharp contrast to the “lazy” stereotype of the millennial generation, we see them today as far as possible from them, and from relying on their parents and living in their homes. We see them starting in the real estate market, and buying homes for millions of dollars.

Today, millennials, people born between 1981 and 1996, represent the largest proportion of homebuyers in the United States, at 38%. That’s based on what the National Association of Realtors survey released last year.

“They are just as interested in owning a home as they are, but they waited longer to buy their first home,” says Bradley Nelson, chief marketing officer at Sotheby’s International Realty.

Buying real estate between generations
“In the past, people would buy a modest property, live in it until they make a family, and then exchange it for a bigger property,” says Nelson.

A new report from Sotheby’s on luxury trends around the world in 2021 says: “Baby-boomers (the pre-millennial generation) tend to retire in sunny areas, while remote work has allowed millennials to move to smaller and more affordable cities.”

Market move preferences
Millennials are the most educated by history and the highest earners. It is also clear that they will inherit more than any previous generation, according to a report issued by the “Brookings Institution” in May 2020.

Millennials’ preferences are expected to change the market massively. They are distinguished by their smart use of technology and their environmental awareness, as we witnessed during the (Covid-19) pandemic.

For example, with the onset of the pandemic, buyers have turned to areas that offer access to outdoor walks, enjoy nature, and create a good quality of life. (Think about the food and the landscape.)

Nelson said cities such as Aspen in Colorado, Austin in Texas, and Montecito in California were all major beneficiaries.

Total sales volume in Aspen reached a record high of more than $ 1.5 billion in the third quarter of last year, while average sales prices in some neighborhoods in Park City, Utah, rose by more than 50% over the summer, according to a report. Sotheby’s on the 2021 luxury scene.

Permanent changes
From now on, developers are likely to integrate high-tech contactless technologies into more homes, focusing on boosting sustainability credentials in new buildings, says Nelson.

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