Millennials Enter the Luxury MarketFebruary 11, 2016
Millennials have reached their prime earning years and emerging as the next generation of luxury buyers. A recent survey of millennials found that high net worth millennials spent nearly $5 million on their most recent home purchase. 69 percent of these HNW individuals recently surveyed said they plan to make a purchase in the next year. The average net worth of this millennial class is $9.7M. Most members of this generation have earned their new found wealth in the US through technology. There is also a significant portion coming into their inheritances as well.
With many preferring to live in new construction buildings rather than older homes, they are making different purchase decisions than previous generations. Many of these luxury market buyers are looking for move in ready, automated, LEED certified homes with open floor plans, gyms, theatres, and safe rooms. Joining the ranks of the ultra wealthy, they are particular about their lifestyle choices and homes. With busy lives and many still childless, they tend to gravitate toward service buildings to single family homes.
This class of millennials can cast a much wider net in terms of geography when it comes to home purchases. No longer restricted by static location, thanks to advancements in technology, they have more flexibility as a generation. They can purchase homes based on where they want to live, rather than being tied to a city based on work alone. In the next few years, these buyers will continue to become a more significant market force. There are 84 million millennials who will soon outpace boomers as luxury consumers. With 10,000 boomers retiring daily, millennials are the buyer to watch.