Young buyers are not only driving the luxury real estate market, they are willing to plunk down more cash than their older cohorts, according to a new survey by Coldwell Banker Previews International and the Luxury Institute.
Of Americans age 21 or older with a minimum gross annual income of $250,000, 43 percent of younger wealthy consumers are mulling the purchase of residential property in the next 12 months. And on average, that batch of young, wealthy consumers spent more than $2.1 million on their most recent purchase — twice the average amount spent by older and similarly wealthy luxury buyers, for whom the average was $1.1 million.
With so many youngsters active in the luxury market, amenities are increasingly tailored to their tastes.
“This trend towards younger luxury buyers is leading a change in desired home amenities,” Betty Graham, president of Coldwell Banker Previews International NRT, said in a release. “Whether these younger buyers have young families or are single without children, they are looking for homes that fit their active and unique lifestyle.”
Those younger buyers, for instance, are more likely to want homes with pools, outdoor kitchens, a home gym or theater and a fully automated “wired” home.
They are also more keen on being green, with wealthy consumers under age 55 more than twice as likely to value green or LEED-certified residential properties than their older counterparts. — Julie Strickland