Traditional luxury home buyers are starting to get some competition from an unlikely source: millennials.
Historically speaking, luxury home buyers are older, above 50 typically, and usually long-established in a career with a record of owning multiple homes.
While dual-income millennial couples may be slow to buy their first home, it seems money isn’t an issue when they get around to making that down payment.
It’s being reported that an increasing amount of professionals in their early 30s can make the jump to homes above $1,000,000.
Millennials have become the heart of major business development regions, like California’s Silicon Valley, Seattle, New York, and the Washington, D.C. metro area.
Areas known for start-up companies and technology growth are stocked with young talent that is coming away in droves from their first jobs with stock options, venture capital, and patents.
For many, the goal is, have to sell your first company before you turn 30. So why not turn all that profit into a luxury home?
an increasing amount of professionals in their early 30s can make the jump to homes above $1,000,000.
Luxury real estate agents report selling luxury homes to couples under 30 is no longer rare. Many are becoming lawyers before they reach 25, or practicing medical professionals.
A pair of Wall Street financial professionals or Palo Alto tech entrepreneurs can have a good deal of combined buying power.
Of course, they’re not all doing it on their own. It’s becoming more common for parents to support children well into their twenties, which often leads to assisting them with down payments, even when the child has an established career.
There’s no shortage of parenting experts who would attest to the trend of mom and dad ensuring today’s child has everything they deserve, even if they haven’t “earned it.”
This raises a somewhat related question on the topic of luxury real estate: in markets like New York and San Francisco, does $1 million really buy a luxury property?
Is that seven-figure benchmark no longer relevant?
In San Francisco, that number is the median sales price. Thus, how do we define luxury, by price or by location?
Needless to say, the luxury market is changing, and we’re very intrigued to see where it will lead us.