The luxury arm of Leading Real Estate Brokerage just released its latest study on the state of luxury home buying in the US. Titled “2018 – The Rise of the New Aristocracy – The Luxury Portfolio Index,” this study, commissioned by YouGov, gives us some insights into the who’s and what’s of luxury buyers.
The average age of this “new aristocracy” luxury homebuyer is 37 years old, married with a young family and anticipates a “very bright future.” Most new aristocrats, 6 in 10, have current assets of approximately $4.7M. On top of this, most expect an additional inheritance of +$1M in 2018. Most new aristocrats have grown up with wealth and if they don’t anticipate additional inheritance this year, they anticipate an average of an additional $4M during their lifetimes.
Stephanie Pfeffer Anton, the incoming president of Luxury Properties with the Leading Real Estate Brokerage, referenced the Credit Suisse Global Wealth Report when she said that personal wealth in the US grew by $8.5T in 2017. “With the phenomenal gains in the stock market (in January 2018), combined with new legislation that favors wealthy families (in the new tax code), we expect this (these gains) to be just the beginning to what could be a boom time for luxury real estate.”
These new aristocrats are house hunting for
- Urban homes with a minimum of 5,000 square feet
- Extra space for specialty rooms such as movie theaters, offices, music rooms, home gyms and even separate, formal dining rooms
- 27% hunting for modern revaluations to traditional homes
- 28% are hunting for Victorian homes
- 24% are hunting for Tudor homes
- 25% are hunting for brick, Georgian homes
- 100% want contemporary interiors
- Privacy and security integrated systems with Smartphone connections/operations
- Smart home technology for everything having to do with sustainable living
- “Essentials” such as great outdoor spaces, commercial grade kitchens and appliances, near proximity to dining/restaurant/entertainment options.
Luxury loyalists who are +50 years are house hunting for
- Contemporary and modern homes
- Big windows and light infused spaces, clean/open lines, new technologies in materials that look used
- Home gym fitness options to make staying healthy easy
- Efficiency and security options
- High end amenities offered large, luxurious condominium developments and apartment buildings that may include on-site restaurants and food services and recreational facilities/services such as croquet, golf, tennis, swimming, game nights, etc.