The New Luxury: Trends From Emerging Luxury Buyers
Posted by Scot Karp on Wednesday, October 15th, 2014 at 3:54pm.
Trends in luxury real estate are shifting as the next generation of affluent real estate enthusiasts and investors take up the mantle. But what do they want in a home? Our blog today focuses on three emerging trends in the luxury real estate market.
Generation Y Buyers
With changing regulations on mortgage and credit availability has come a changing demographic of those who dabble or delve in the luxury real estate market. And now that the market is stabilizing, we're seeing new shifts in not only the types of homes that buyers are looking for, as well as in the buyers themselves.
While the millennial generation is often attributed with characteristics along the lines of having piles of student debt, being doubtful of real estate's financial stability, and exercising spending caution, a particular cohort of this generation is creating a niche for themselves in the luxury real estate world.
They have the capital to invest in a home, and can easily afford to purchase investment properties. In fact, investment properties are particularly popular among this group because of their tangibility. Both stocks and real estate markets ebb and flow, but at the very least you can live in or rent out your home. Location is no longer a major factor either, because these young luxury buyers are often able to work from home or commute considerable distances. Of greater importance is the lifestyle that comes with the community.
What's more is these affluent, young entrepreneurs are influencing the way the homes themselves are built, as they seek certain trends and features in their residences or investment properties.
Leadership in Energy and Environmental Design (LEED) certified residences and corporate structures are on the rise, with sustainability becoming increasingly desirable. Not only are these homes sustainable ecologically, but they provide more long-term economic sustainability to the residents, who benefit from lower energy bills. Young buyers are often seeking this sustainability in their residences.
In fact, recent studies show an increase in popularity for listings that described natural materials in the construction of a home.
Design trends have never stayed fixed for very long, as is the nature of tastes and preferences. But what the new luxury buyers seek is an interesting shift from the floor plans coveted by their parents or even grandparents. Shedding formality is gaining traction, with buyers looking for open-concept floor plans devoid of formal dining and living rooms. Instead these buyers are turning to safety. High-tech security systems are in place, along with safe rooms.
What do you look for in a luxury property? Tell us below.
Scot Karp, Director
Ultraluxury Condominium Division
PREMIER ESTATE PROPERTIES
Boca Raton, Florida
"RANKED IN THE TOP 250 AGENTS NATIONWIDE BY THE WALL STREET JOURNAL"