Static Market Leads to Focs on Future Trends
In last month’s Luxury Market Report, we reviewed how the changing face of the real estate industry now fully recognizes the importance of including amenities that address the physical, social, and mental/emotional wellness of its residents. Today’s demand shows that for many buyers, larger properties are viewed as too labor-intensive and expensive to manage and maintain. Instead, home purchase decisions are trending towards smaller properties with the experiences and amenities a property affords to its owner.
Interestingly a first glance at the statistics shows that in last 18 months, the luxury market has been pretty static. But rather than this illustrating that the market is ‘status quo’ in terms of demand, these figures really show that there is still a strong confidence in the luxury market in terms of financial investment. Digging a little deeper into the data reveals that the money has been shifting gradually into the new demand pockets mentioned above.
This is why it’s so important to analyze the statistics. When there is little movement, the real changes can be going on behind the scenes in emerging trends; making it even more critical to pay attention.
The dramatic increases in the levels of property ownership over the last 50 years was greatly influenced by a changing economy from blue-collar to white-collar as well as women entering the workforce. However, while some predict that real estate will remain a long-term investment, others foresee a downward shift as the millennial population seek co-living and rental opportunities.
In the high-end market, the growing number of affluent will certainly mitigate a downward shift and its unlikely the millennial millionaire population will be seeking co-living or rentals, but they are shifting their preferences. Their attention is directed to finding opportunities in new markets, diversifying their portfolio, choosing locations that offer experiences, and discreetly spending on intangibles such as health and wellness.
Read the full report here.