After years of media coverage around millennials not entering the housing market, the affluent cohort of these buyers is finally becoming a major force in the luxury housing market. But these buyers are faced with challenges including low inventory in many markets, and competition for high-end homes with affluent buyers who are downsizing into urban areas. We asked our experts across the world, what are the two largest demographic cohorts of affluent home buyers looking for and how are their preferences shaping the luxury market?
What the experts in the field have to say:
Boomers are embracing a new lifestyle: “The tail-end baby boomers continue to be a major market force, adding supply and demand pressures on the market as they downsize. Boomers are selling large luxury properties and reinvesting in multiple homes with different lifestyle locations. A boomer selling a $4 million residence may purchase two homes for $2 million to meet their changing retirement needs.”
Terry Sprague, Luxe Platinum Properties, Portland, Oregon
Staying put rather than downsizing, some boomers are adding to inventory constraints: “Boomers have voiced objections to living the same way as their parents did in retirement. Often in good health and with active lifestyles, they want residences that give easy access to local culture and recreational facilities, but also have the flexibility to meet future care requirements. The current lack of suitable accommodation is having a negative impact on the wider housing market. With empty nesters lacking an incentive to downsize and deciding to stay in their existing homes, there is less housing stock available for younger buyers.”
Stephanie McMahon, Strutt & Parker, London, UK