Fueled by inherited wealth, the New Aristocracy seeks larger homes in urban areas
CHICAGO, February 6, 2018 – New research commissioned by Luxury Portfolio International®, the luxury face of Leading Real Estate Companies of the World®, predicts that younger buyers will continue to energize the luxury real estate market. The report, titled, The Rise of the New Aristocracy, was released at the Luxury Portfolio SUMMIT in Las Vegas on January 29, 2018. The United States is seeing a dramatic surge in the number of affluent households. The New Aristocracy, defined as affluent consumers aged 25-49, exhibit a strong preference (78%) for large homes with square footage over 5,000 square feet, generally grew up with wealth and anticipate inheriting on average $4M. The implications this will have for luxury real estate are significant.
“This group is unlike any American generation before it,” noted Luxury Portfolio International® executive vice president Stephanie Anton. “Their economic power and conversance with the world of luxury make them savvy consumers with very refined and focused tastes.”
The New Aristocracy is primarily looking to purchase urban residences near plenty of dining options and contrary to popular belief, They are interested in a wide variety of home styles including Victorian, Brick Georgian and Tudor as well as Modern. While they may be seeking classic aesthetics on the outside, the homes must satisfy the increasing demand for the latest technology with modern security systems and state-of-the art, commercial grade kitchen appliances.
The New Aristocracy is in contrast to the more traditional luxury buyer, who is defined as the Luxury Loyalist, a buyer over 50 who is interested in downsizing and sharing both their wealth and their knowledge with the next generation. The majority of these buyers (68%) are searching for suburban homes under 5,000 square feet. Compared to the New Aristocracy, Luxury Loyalists have less interest in technology features and more interest in features for relaxing and enjoyment such as outdoor patio space.
Additional findings from The Rise of the New Aristocracy report:
- Over half of luxury buyers under 50 (53%) are seeking a home over 7,500 square feet whose size is driven by lifestyle demands and specialty spaces rather than necessarily beds and baths.
- The New Aristocracy is twice as likely as Luxury Loyalists to say pools are essential and nearly three times as likely to consider a spa/Jacuzzi essential
- Most sought-after community amenities for the luxury buyer include a gym, walking trails and valet parking. 55% of The New Aristocracy consider proximity to dining an essential feature for their next home.
- Top desired features for luxury buyers over 50 include outdoor patios, dedicated laundry rooms, master suites with two closets and a butler’s pantry
- Older buyers see smart homes and security monitoring as nice-to-have features rather than essentials. They do not want to learn a new system if they can avoid it.
“For luxury real estate agents, understanding the buying preferences of The New Aristocracy is very important. This buyer has very defined tastes and seeks a residence that matches and augments their high-performance lifestyle,” added Anton.
Luxury Portfolio International partnered with YouGov to create this survey of real estate demands and expectations among high-net-worth consumers in America. To download the complete report with all findings, please visit http://www.luxuryportfolio.com/whitepaper.
About Luxury Portfolio International®
Luxury Portfolio International® (www.luxuryportfolio.com) is the luxury face of Leading Real Estate Companies of the World®, the largest global network of premier locally branded companies dominated by many of the world's most powerful independent luxury brokerages. Luxury Portfolio International® attracts a global audience of visitors from over 200 countries/territories every month and marketed over 50,000 luxury homes to over three million high-net-worth visitors last year.
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