Millennials Impact the Luxury Real Estate Market

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Market Trends

Are Millennials Getting a Bad Rap?

This generation, born between 1981-1996 has been branded with a “slacker” sticker, busy playing video games and living in their parent’s basements. The reality is that Millennials represent 38% of home buyers, the largest share in this county, according to a survey by the National Association of Realtors released last year.  They are just as interested in buying a home as previous generations, but waited longer to do so. And many are not beginning with a modest starter home. Instead, it’s not uncommon for them to bypass this traditional right of passage and have their first purchase be a multimillion dollar luxury home.
Being environmentally conscious, sensitive to sustainability and tech savvy, they are poised to profoundly influence the direction of the luxury real estate market. And developers are responding by integrating touchless control and power generation features into new home construction. The pandemic has seen rise in demand for community features such as walkability, nature and a well-rounded quality of life, resulting in many buyers, millennial included to be  drawn to second-tier markets as they bypass big city living.
Waiting to buy gave Millennials more time for education and they are now the most educated in history plus they have higher earnings and are poised to inherit more than any prior generation. Adding in the new normal of working remotely, dramatically opens up their housing possibilities.  No longer do they have to live where they work.

Kathy Burns
Realtor®, CIPS, RSPS, SFR
License #: 01423984
Coldwell Banker Realty
M: 949.500.9714
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