It may have taken a little longer than expected, but millennials are finally making their presence felt in the luxury real estate market. With their own tastes and preferences that are demonstrably different from past generations, it’s fair to say that they’re shaking things up and will continue to do so for years to come. Following are just a few things to know about how millennials are impacting the high-end market.
Redefining the “Starter” Home
High-earning millennials aren’t exactly buying your traditional “starter” home. In fact, although they may be entering the market a little later than past generations, a few extra years of saving has allowed many to go straight to the luxury sector, which has been a welcomed surprise for sellers.
Leveraging Mortgage Rates
Historically low mortgage rates over the last 12 months proved to be a boon for millennials, the majority of whom were entering prime years to purchase their first property. This was likely one of several catalysts that pushed them off the sidelines and into the market, but it certainly wasn’t the only reason.
Another significant factor is that a considerable portion of high-income millennials can now work remotely. Those who were already saving up to purchase a property in a major city or surrounding suburbs are now location-independent and enjoying the fact that their money goes much further elsewhere. Specifically, medium-sized cities with access to nature and cultural amenities are proving to be the destination of choice.
Millennials have been called the “wellness generation,” so it should come as no surprise that they prefer homes that support a healthy lifestyle with features like a home gym, outdoor space and nearby recreational amenities. In addition to taking care of themselves, they want to take care of the planet and show a willingness to pay more for energy-efficient homes that embrace sustainable design.