The top four super-rich are driving the luxury real estate market. Increasing a high demand for luxury homes among properties in the $1 million to $5 million range.
It takes more than skills to sell luxury real estate these days. Even more than a good reputation or seasoned knowledge.
Experience is only beneficial if the luxury realtor can offer lifestyle enhancement to improve quality of life. Knowing what luxury real estate buyers want and which properties they prefer.
Understanding the deep psychology of how to connect with your luxury real estate buyer. If you can’t relate or get educated on buying patterns for luxury real estate it will be harder to compete in the marketplace.
Where 71% have a net worth of over $5 million and drive the competition in the luxury real estate market released in Coldwell Banker Global Luxury® program’s “Real Estate’s New Power Players” report. This is part of their annual “A Look at Wealth” series.
According to the report this staggering wealth growth is driven by rebounding stock markets, cryptocurrency gains, and higher 401(k)s, combined with soaring home prices and low-interest rates meant buyers borrowed and saved more while reinvesting cash, leading to the emergence of a new set of Power Players redefining the meaning of luxury.
These top four individuals are considered to be the power players driving the luxury real estate market. Pushing a 180% increase of luxury property ownership in a three-year period.
The four core groups identified are having a major impact on the luxury real estate landscape in 2021:
- Baby Boomers: Representing 51% of the Power Players, Baby Boomers, those aged between 57-75, are speeding up their retirement plans and moving into the home of their dreams. Many Boomers have leveraged the equity of their primary residences and sought out dream homes in more remote locales, like the rural countryside or resort towns. There are 2,020,854 Boomers who own more than three properties — the most out of any age group. Top locations: Scottsdale, Arizona, Sarasota, Florida, Low country, South Carolina (including Hilton Head, Bluffton and Beaufort).
- Golden Millennials: Golden Millennials, those aged 35-40, represent 60% of all millennial-owned luxury properties today. Holding more focus on values and the desire for sustainability and authentic living, this age group has shown a greater propensity for secondary cities and suburban locations that can offer them enough space for work, school and access to amenities. The influence of Golden Millennials will be important to watch as their wealth and real estate portfolios grow. Top locations: Atlanta, Georgia, Chicago, Illinois and Seattle, Washington.
- Second Homeowners: Largely attributed to the pandemic, many consumers desired a “get-away” residence, resulting in a rise in second-home purchases. Their influence on the overall luxury property market is one to watch; nearly 70% of those with a net worth of $5 million and up own two or more properties. Top locations: Monterey, California, Coeur d’Alene, Idaho, and Park City, Utah.
- Urban Repatriates: As COVID-19 restrictions ease, a resurgence of the nation’s cities is prevalent. Luxury attached property values in 2021 increased an average of 14% compared to 2020 and 2019. Of the 184 U.S. cities reviewed by Wealth-X, there are 1,647,110 properties owned by the affluent with a net worth of $5 million and up in downtown cores as of August 2021. Top locations: San Francisco, California, Boston, Massachusetts, and Brooklyn, New York.
If you selling luxury real estate make sure that you understand how to target the best-matched audiences looking and ready to buy.