Everything You Need to Know About Today's Luxury Consumer

The amount of emerging luxury consumers is growing exponentially, which means the real estate market is being shaped and driven by how this demographic thinks and interacts. Older generations are less likely to be looking to invest, meaning baby boomers and Generation X luxury buyers are less active in the market. This makes new affluent consumers even more noticeable.

Similar to those before them, these young, affluent consumers are very selective about the brands they give their business to. However, what's different about younger buyers is they feel a personal connection to the brands they resonate with. If a brand no longer aligns with their values, they will drop it and move on to one that does. When young luxury consumers purchase something, they’re buying into a value system, into a lifestyle, not just a social status. That is why technology and environmental consciousness play a role in their decision-making process.

Here are three traits and trends that agents should keep in mind as they work with these new affluents:

They're Focused On The Near Future

These consumers are looking for instant gratification. Few of them are at the stage where they’re looking for their forever home: they are simply on the lookout for a good investment. They also are less likely to be interested in a "fixer-upper" home. This demographic of buyer is busy working hard to earn money and has little interest in putting more effort into a home that is anything less than turn-key. If you're trying to attract younger affluent buyers to a home on the market, do as much as you can to make the home as "finished" as possible.

They Are Not Bound By Tradition

Lifestyles have changed over the years and now younger generations prefer an open living floorplan over the traditional style home with a closed-off kitchen and dining room. Today's young affluent buyers want a home they can entertain in, and the kitchen is considered part of this entertaining space. Young luxury buyers are also different in that they form their own opinions about what is and isn’t a good location. For instance, walkability is more important to them than living in a quiet neighborhood.

They're Interested in Technology and The Environment

Young luxury buyers want a home with the latest technology that fits their lifestyle, like a Smart Home system that controls lights, temperature, music, and home security. These buyers are more eco-conscious than their elders and care about the environment, so things like energy efficiency, solar panels, and radiant heat are a must. Because this new generation of consumers is interested in tech, this also means that they often find their real estate agent through a social media platform or on the internet.