Smart brands target Millennials because they are the future of brands, why should it be any different in luxury space? The Real Estate industry is moving at a blistering pace, where Millennials are considered as the largest group of elites, buying luxury houses. A surprisingly high number of Millennials earning high incomes have a buying power to afford residence of one million. The upcoming home buyers and Millennials are spurring a resurgence in prime residential markets across the globe. According to a report on the international luxury residential market, the property markets are attracting the emerging buyers and the high net worth Millennials to reshape the landscape of the luxury residential industry.
Millennials with Money Find Out Where They Live
Anyone born between the early eighties, in the internet age and the era predating cell phones, is called Millennials. Due to a significant jump in technology, there is one thing common in all Millennials- a disruptive mind set. They are a free thinking individualistic generation of more than 80 million people all around the world. They have the potential to be the largest spending generation in history. The oldest Millennials are entering in their peak earning years, and they have disposable income for luxury experiences. They are honorable to reshape the economy, and their unique experiences are changing the way we buy and sell. The same is true in case of real estate market.
These aspirational luxury consumers feel flush thanks to the rising value of their houses because they don’t mind using credit cards to purchase the signifiers of the wealthy lifestyle. The Millennials with $100,000 or more in annual household income are the affluent mass consumers, and they are significantly participating in luxury markets. According to a marketing research firm Kelton Research, this affluent segment is the biggest group of buyers with a potential spending power, i.e., $200 billion a year or even more, for luxury items. The Millennials are considered to be in the prime years, and they are ready to establish a household, to build a career and to start families. Plus, their desire to settle down shortly is leading a surge to buy luxury home.
Millennials Want Everything to Be Just Right.
Millennials put great emphasis on experiences over possession, but they consider owning a home as an important part of living in America. Approximately 34% out of the total home buyers are the Millennials, and 66% are planning to purchase a home in the next five years. This is the massive generational shift in real estate, but frugality does not ends here!
Millennials for growing up and settling down are looking for houses as an extra investment opportunity. They are not just starting to buy homes, but they are powering the housing market.
In short, the generation of Millennials has a different perception towards buying homes. They have grown up in a time of rapid change with a sharply different set of priorities and expectations. They are a better-informed generation than the ones before and after them. So, being a realtor, you must have to cater the enormous buying potential of this group.