Meet 3 Types of Buyers Influencing Luxury Real Estate
October 28, 2020
The wealthy are defying traditional migration patterns amid the pandemic. They are shunning cities and moving to areas that accommodate their family needs, with an emphasis on privacy, greater home square footage, and health and safety, according to the New Affluent Trailblazers report, recently released by Coldwell Banker Real Estate LLC.
Coldwell Banker partnered with WealthEngine, Wealth-X, and other third-party sources to identify the three types of buyers having a major impact on luxury real estate this year:
Members of this luxury group are ready to move away from the city in search of “hidden gem” towns where they can stretch their money further. They tend to be under the age of 39, married with at least one child, and carrying a net worth of $1 million to $5 million. “They are less concerned with status and more willing to choose locations in slightly more rural, nontraditional luxury markets—if it means that they can have better schools, access to open space, and a dynamic mix of shops, restaurants and recreational facilities that allow them to center a lifestyle focused on family,” the report notes.
Explorers give high marks to Fredericksburg, Texas; Truckee, Calif.; and Rock Hill, S.C., the report says.
They seek the quietness of the suburbs and are drawn to greater personal space; private backyards; a bedroom for each child; property amenities such as two home offices; and highly ranked schools. They tend to be older than the Explorers, between the ages of 39 and 54, and married with two or more school-aged children. Their net worth is higher than Explorers’, at $5 million to $10 million. Many New Suburbanites own more than one home. They also factor in commuting distance from cities for business.
New Suburbanites give high scores to Winnetka, Ill.; Westfield, N.J.; and Brentwood, Tenn.
This group of buyers is drawn to vacation destinations; its members are seeking a resort lifestyle, fresh air, and access to recreation and luxury amenities, the report notes. “They may either be permanently relocating to their favorite vacation spot or converting a second home to a primary residence in response to the pandemic,” according to the report. This group’s members tend to be over the age of 54 and married with either older or adult children, and they own at least two properties, including a home in a city.
The report ranks the following markets high among Resorters: Aspen, Colo.; Boca Raton, Fla.; and The Hamptons, N.Y.
Updated: November 30, 2020