Wealthiest Millennials tend to prefer urban, multigenerational living
The pandemic has brought about a cultural change in the ways we live and work. This has led to a heightened awareness, particularly among Millennials, for the need to fulfil their own residential needs and ensure a maximum quality of life. According to Engel & Völkers Americas, almost half of all luxury home sales next year will be made by Wealthiest Millennials with an annual income in excess of 250,000 US dollars. 83 percent already own properties in urban cities. 60 percent also reported the desire to stay and purchase in an urban city, while 40 percent plan to move to the surrounding region. Family and health appear to be particularly important for Millennials, and especially so in the wake of the pandemic. The majority favours innovative and sustainable forms of living such as multi-generational arrangements: 93 percent reported that their parents either already live with them or that they will live with them in the future. Their homes need to accommodate this, and downsizing is considered an outdated notion by Millennials. Properties with many rooms, expansive living spaces and outdoor grounds are in demand.
Millennial Entrepreneurs taking advantage of remote working options
Two-thirds of the Millennials surveyed are young entrepreneurs, many of whom have founded their own start-ups. They are no longer constrained by the limits of a physical office or a fixed place of residence, due to the new options that remote working has opened up. This group is regarded as being very family-oriented. They are more likely than their peers to be married and have young children, and they are often responsible for the care of at least one parent. 83 percent of Millennial Entrepreneur home sellers are committed to changing their lifestyle as a result of the pandemic in order to ensure they are never separated from their families again, and can combine home and work life even better. While the majority of this cohort indicated a preference to live in an urban city, 28 percent expressed a wish to relocate to rural areas.
Covid HENRY's give priority to travel and life experiences
The acronym HENRY “High Earners, Not Rich Yet” refers to young professionals with an annual household income between 100,000 and 250,000 US dollars, but who have not yet amassed the same amount of wealth as older generations who have been in the workforce for a longer period of time. Covid HENRYs are made up of 81 percent Millennials and 19 percent Gen Z generations (from 1998 onwards) who emerged from the pandemic within this salary range. 83 percent of HENRY’s already own their own property. As a result of flexible working models and a new independence in the digital age, almost half of respondents stated they would sell their home to travel globally and gain more unique experiences. The majority benefits from the new world of work and sees the current situation as an opportunity to realise individual models for living.
Outlook: New motives for selling homes to see sustained shift in trends
The latest Trend Result released by Engel & Völkers Americas makes it clear that, for many young home owners in North America, their reasons for selling have changed in the wake of the pandemic. This has heralded a long-term period of trend reversals. Millennials in particular place importance on living together with their families and being in a position to experience a unique lifestyle. Furthermore, the majority of all respondents wish to continue living in the city. “For more than a decade, most home sellers were an older-generation cohort looking to sell their home to downsize to more modest living arrangements. We are currently seeing a new attitude towards home life emerge, coupled with a generational change. It is driving a positive dynamic on the residential market that will shape the luxury real estate segment over the coming years,” Anthony Hitt commented.
About the Trend Report
Engel & Völkers North and Central America, in cooperation with the US market research institute Researchscape, surveyed more than 1,700 respondents across North America between 22 and 23 June 2021.
“The Next Luxury Home Seller Report 2021/2022” is available for download here. Please find further information at: https://www.evfranchise.com/the-next-luxury-home-seller