Millennials The Dominant Force In Luxury Real Estate
Millennials are the most educated generation in history. With an higher earnings they are set to inherit more than any prior generation.
As a result, millennials are quickly becoming a dominant force in high-end real estate. At 38%, millennials adults born from 1981 to 1996 represent the largest share of home buyers in the U.S. According to a survey by the National Association of Realtors released last year. “They’re just as interested in owning a home. They just waited longer to buy their first one,” says Bradley Nelson.
Breaking from the notion of a “starter home” that older generations embraced, wealthy millennials, Nelson says, 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 says. “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.”
According to a recent survey, 63% of affiliates polled said they expected luxury home prices to rise over the next three years in their respective markets. More than 70% of respondents reported heightened demand at the end of 2020.