BeTechIT
No Result
View All Result
  • Home
  • Reviews
  • Games
  • Cryptocurrency
  • Markets
  • Banking
  • Contact Us
  • Home
  • Reviews
  • Games
  • Cryptocurrency
  • Markets
  • Banking
  • Contact Us
No Result
View All Result
BeTechIT
No Result
View All Result

Millennials are changing luxury real estate market, Real Estate

by Renee Wade
February 2, 2021
in General
0
Millennials are changing luxury real estate market, Real Estate

Tue, Feb 02, 2021 – 5:50 AM

New York

IN SHARP contrast to the “slacker” stereotype that has defined their generation, millennials are not living in parents’ basements. They are buying multimillion-dollar homes. At 38 per cent, millennials – adults born from 1981 to 1996 – represent the largest share of home buyers in the US, a survey by the National Association of Realtors released last year showed.

“They’re just as interested in owning a home. They just waited longer to buy their first one,” said Bradley Nelson, chief marketing officer of Sotheby’s International Realty.

Breaking from the notion of a “starter home” that older generations embraced, wealthy millennials, he said, are going big.

“In the past, people bought a modest property, lived in it until starting a family, and then traded up to a larger property,” he said. “Millennials are finally coming out of the gate, and it’s not uncommon for the first purchase as a first time homebuyer to be a multimillion-dollar luxury home in the US or internationally.”

Stay updated with
BT newsletters

As a result, millennials are quickly becoming a dominant force in high-end real estate.

“Baby boomers are retiring to sunnier locales, while remote work has allowed millennials to ascend the housing ladder in smaller, more affordable cities,” said a new report from Sotheby’s on global luxury in 2021. “An emphasis on things like sustainability will certainly go into overdrive with the ageing of millennials, who, at 72.1 million, are the largest adult generation, with unique consumer preferences that will profoundly influence the direction of the luxury-housing market.”

Millennials are the most educated generation in history, have higher earnings, and are set to inherit more than any prior generation, said a May 2020 report by the Brookings Institute.

Characterised by their tech savvy and environmentally-conscious values, millennial preferences are poised to dramatically shape the market, a dynamic that has been on display during the Covid-19 pandemic. Beginning almost immediately after the coronavirus hit, for instance, buyers began to flock to areas that offered walkability, nature, and a well-rounded quality of life. (Think food and an art scene.) Aspen in Colorado, Austin in Texas, and Montecito in California were all prime beneficiaries, Mr Nelson explained.

“It’s the difference of choosing where you want to live versus living where you work,” he said. “Millennials are thinking about their overall lifestyle. It’s propelled these second-tier markets to the top of the interest list.”

Total sales volume in Aspen hit a record high of more than US$1.5 billion in the third quarter, while in some neighbourhoods of Park City, Utah, median sales prices spiked by more than 50 per cent during the summer, said Sotheby’s 2021 Luxury Outlook.

Outside the US, the Mornington Peninsula on the outskirts of Melbourne on Australia’s south-eastern coast has also seen a similar influx, the report stated.

In the future, developers are likely to integrate touchless, high-tech features into more homes and focus on bolstering sustainability credentials in new buildings, Mr Nelson said.

From energy-saving geothermal systems and solar panels to green roofs, “these are the features that are most attractive”, he added. “If a home is move-in ready and environmentally conscious and has a Tesla charger installed in the garage, those homes are generating a premium, because you have so many buyers interested in competing for them.” Overall, the luxury real estate market is ripe for growth.

According to a December Sotheby’s International Realty survey, 63 per cent of affiliates polled said they expected luxury home prices to rise over the next three years in their respective markets. More than 70 per cent of respondents reported heightened demand at the end of 2020.

In the short term, however, disjointed vaccine distribution and renewed quarantine restrictions could hamper foreign buyer interest. Only one-third of Sotheby’s affiliates expect to see an uptick in demand in the first half of 2021, said the report.

Additionally, amid indiscriminate declines in overall tax revenues caused by the pandemic, governments globally are reassessing property and wealth taxes as a means of filling budget gaps.

“Across all buyers, tax implications are going to be larger part of their home-purchase consideration,” Mr Nelson said.

For the fast-growing cohort of young, affluent buyers eager to snag their dream homes, millennials face slim pickings for options that meet their unique tastes. “Inventories are at near-record lows in general, and especially for the homes with the features they’re looking for,” he said.

Still, he added that with “wealth creation growing and cost of capital declining, it’s a promising storm for the high-end housing market.” BLOOMBERG

Related Posts

Centro Railyard residential and retail property sold
General

Centro Railyard residential and retail property sold

February 2, 2021
17 Luxury Homes Went into Contract in Brooklyn Last Week
General

17 Luxury Homes Went into Contract in Brooklyn Last Week

February 2, 2021
BedBrock Developers breaks ground on Crown Canyon in Paradise Valley
General

BedBrock Developers breaks ground on Crown Canyon in Paradise Valley

February 2, 2021
Top 5 Mansions of the Week
General

Top 5 Mansions of the Week

February 2, 2021
Tom Brady’s neighbors relish Buccaneers’ success
General

Tom Brady’s neighbors relish Buccaneers’ success

February 2, 2021
For First Time in 5 Years, Britain’s £1 Million-Plus Market Sees Growth
General

For First Time in 5 Years, Britain’s £1 Million-Plus Market Sees Growth

February 2, 2021
Next Post
Top 5 Mansions of the Week

Top 5 Mansions of the Week

No Result
View All Result

Categories

  • Airlines
  • Apps
  • Architecture
  • Banking
  • Bitcoin
  • Compares
  • Credit Card
  • Credit Cards
  • Cryptocurrencies
  • Cryptocurrency
  • Default
  • Devices
  • Email
  • Entertainment
  • Featured
  • Fintech
  • Games
  • Gaming
  • General
  • Gold
  • Health
  • Hot
  • How To
  • Life
  • Lifestyle
  • Loans
  • Luxury
  • Market
  • Marketing
  • Marketplace
  • Markets
  • Mobile
  • Money
  • Mortgage
  • Mortgages
  • Movies
  • News
  • Oil
  • People
  • Photography
  • Politics
  • Real Estate
  • Reviews
  • Security
  • Smartphones
  • Stock Market
  • Stock Market: BA Stock
  • Stocks
  • Streaming
  • Tablets
  • Tech
  • Technology
  • Travel
  • TV
  • Wear

Recent Posts

  • KatmovieHD Bollywood Hollywood Hindi Tamil Telugu HD Movies Download
  • Pfizer to acquire Global Blood Rehabs in $5.4 billion deal
  • Afilmywap Bollywood Hollywood HD MP4 Movies Download Free
  • Kuttymovies 2022 Tamil HD Movies Download and install kuttymovies.com
  • GOLD PRICE (XAU/USD), GRAPH, AS WELL AS EVALUATION

Tags

1 bitcoin to usd best bitcoin wallet Bitcoin bitcoin atm bitcoin atm near me bitcoin calculator bitcoin cash bitcoin cash price bitcoin chart bitcoin converter bitcoin etf Bitcoin Halving bitcoin machine bitcoin machine near me bitcoin mining bitcoin near me bitcoin news Bitcoin News Today bitcoin prediction Bitcoin Price bitcoin price chart bitcoin price history Bitcoin Price Live bitcoin price prediction Bitcoin Price Today bitcoin price usd bitcoin price x2 double your btc moon bitcoin live bitcoin reddit bitcoin stock bitcoin sv bitcoin ticker bitcoin to usd bitcoin usd bitcoin value bitcoin wallet buy bitcoin buy bitcoin with credit card current bitcoin price current value of bitcoin free bitcoin how does bitcoin work how much is bitcoin worth how much is one bitcoin how to invest in bitcoin what is bitcoin
KatmovieHD Bollywood Hollywood Hindi Tamil Telugu HD Movies Download

KatmovieHD Bollywood Hollywood Hindi Tamil Telugu HD Movies Download

August 14, 2022
Pfizer to acquire Global Blood Rehabs in $5.4 billion deal

Pfizer to acquire Global Blood Rehabs in $5.4 billion deal

August 14, 2022
Afilmywap Bollywood Hollywood HD MP4 Movies Download Free

Afilmywap Bollywood Hollywood HD MP4 Movies Download Free

August 14, 2022
  • Privacy & Policy
  • Contact Us

© 2022 BeTechIT - Technology News & Reviews

No Result
View All Result
  • Homepages
    • Home – Layout 1
    • Home – Layout 2
  • Reviews
  • How To
  • Apps
  • Devices
  • Games

© 2022 BeTechIT - Technology News & Reviews