Coldwell Banker Real Estate LLC and the Coldwell Banker Global Luxury® program recently released its “New Affluent Trailblazers” report as part of its annual “A Look at Wealth” series. This year’s report found that priorities are shifting toward family, friends, health and wellness, as well as teleworking. What does that mean for home-buying trends? A new set of affluent demographics are migrating their wealth to new, unexpected markets, according to the report.
“We hope these insights clarify the demographic shifts underway in many markets and provide luxury real estate professionals, whether or not they’re Coldwell Banker agents, with a blueprint for engaging and connecting with the new Trailblazing homebuyer in this uncharted world,” Craig Hogan, vice president of luxury for Coldwell Banker Real Estate LLC, tells RISMedia.
Due to the uncertainty in 2020 driven by the coronavirus, potential homebuyers are turning away from cities, opting for areas that better meet their family needs with an emphasis on health and safety, privacy, access to more space, and “intangible luxury items,” such as on-demand healthcare and additional passports.
The report found that there are three category of buyers that are having a major impact on luxury real estate in 2020:
Explorers: These buyers are leaving the city behind in search of homes in America’s exurbs and “hidden gem” towns where their dollar will go further. They compromise for non-traditional luxury markets in rural settings if it means that they get “better schools, access to open space and a dynamic mix of shops, restaurants and recreational facilities that allow them to center a lifestyle focused on family.” This demographic tends to be under the age of 39, married with at least one young child, and with a net worth in the $1 to 5 million range. Many of these purchasers are business owners, business executives or in careers with the flexibility to work from home, making it easier to live farther away from major metro centers.
New Suburbanites: These buyers prefer suburbs with a lot of personal space, private backyards, a bedroom for each child, various property amenities (such as dual home offices for two working parents), good schools and, for some, a little bit of city culture via urban-style mixed-use centers with restaurants, retail, offices and open green spaces. Although many may be entrepreneurs, business owners or senior managers with the ability to work from home, they may still require a short commuting distance. These buyers tend to be between the ages of 39 and 54, and are married with two or more school-aged children. They also tend to have a higher net worth ($5 to $10 million) and many own more than one home; however, this varies by area.
Resorters: These buyers are drawn to world-class vacation destinations and are looking for a resort lifestyle with plentiful luxury amenities. They may either want to permanently relocate to their favorite vacation spot or convert a second home to a primary residence. These buyers are typically in a higher wealth bracket of $10 million and over, and are over the age of 54, married with possibly older or adult children and own at least two properties. The majority are established business owners with middle management onsite and the freedom to work remotely. Due to some being retirement aged, they have the freedom to live anywhere they want.
Here are the top nine luxury real estate markets on the rise among Trailblazers:
– Fredericksburg, Texas
– Truckee, Calif.
– Rock Hill, S.C.
– Winnetka, Ill.
– Westfield, N.J.
– Brentwood, Tenn.
– Aspen, Colo.
– Boca Raton, Fla.
– The Hamptons, N.Y.
To determine these rankings, the Coldwell Banker Global Luxury® program and the Institute for Luxury Home Marketing began with 24 markets that fall into the category of hidden gems, suburbs and vacation destinations and then used the “Affluent Relocation Index” to score these markets based on 12 key drivers of affluent relocation for 2020.
Source: Coldwell Banker Global Luxury