Report features fresh insights from U.S.
luxury consumers and identifies the top trends dominating the
global luxury real estate landscape
MADISON,
N.J., Jan. 18, 2024 /PRNewswire/ -- Coldwell
Banker Real Estate LLC, an AnywhereSM (NYSE: HOUS)
brand, and the Coldwell Banker Global
Luxury® program, today released "The Trend
Report," showcasing increased consumer optimism in
luxury real estate as the fourth quarter of 2023 welcomed fresh
energy from luxury homebuyers.
Over one-third of surveyed luxury consumers feel that 2024 will
be a better time to buy or sell a home compared to 2023 –
indicating enthusiasm for luxury real estate as they pursue their
dream home, according to the Coldwell Banker Global Luxury Consumer
Survey.
Furthermore, the luxury market saw sales during the last quarter
of 2023 increase nearly 4.2% for single-family homes and 14.2% for
attached properties compared to the previous year, while new
listings also increased by 14.2% for single-family homes and 7.2%
for attached properties during the same period1. On
average, luxury consumers surveyed plan on selling their home
within the next 10 months.
Alongside the luxury consumer survey, "The Trend Report"
explores top trends leading today's luxury homebuying landscape,
backed by additional insight and data from Coldwell Banker Global
Luxury Property Specialists, the Institute for Luxury Home
Marketing and Wealth-X.
The top six themes shaping the 2024 luxury real estate market
identified by "The Trend Report" are:
- Shifting out of Neutral: Influences on the Luxury Market
- Have-It-All Properties
- The Influence of AI
- The High Earners, Not Rich Yet (HENRY) Factor
- Foreign Buyers
- Smart Homes
In addition to the trends and consistent theme that wealthy
Americans have a more positive outlook on the real estate market
heading into 2024, key findings from the Coldwell Banker Global
Luxury Consumer survey include:
- Continued desire for affluent consumers to purchase a home
abroad
- Social media's tremendous role in homebuying
decisions
- Location being the most important factor to consider when
searching for a home
International Investments
America continues to be a real estate safe haven for many of the
world's wealthiest and influential consumers. According to "The
Trend Report," international buyers purchasing real estate in the
top 5% of the market in 2023 saw 25% growth, indicating that
international high-net-worth consumers continue to see to value of
investing in the U.S. luxury real estate market. The top
international buyers include China, Canada
and the United Kingdom, and the
most favored cities to purchase within the U.S. are New York, Los
Angeles, Miami,
San Francisco and Washington, D.C.
While international buyers look to America for their next
property, wealthy Americans are also exploring opportunities
abroad, with nearly 40% of survey respondents planning to buy a
home in a foreign location within the next year and two-thirds of
affluent consumers saying they plan to purchase a home abroad
within the next five years. Europe
is the top destination among luxury consumers (29%), followed by
North America outside the U.S.
(28%) and the Caribbean (23%).
Social Media Influences Luxury Buyers
Social media is overwhelmingly influencing luxury consumers to
purchase their dream home. A whopping 73% of affluent consumers say
they have been influenced by social media to purchase a particular
home they desire. Instagram (45%), YouTube (45%) and TikTok
(44%) are the top social media platforms that have influenced
luxury consumers to purchase their dream home.
For the younger generations of luxury homebuyers like
millennials and Gen Z, TikTok has especially become an enormously
popular platform to connect with real estate agents to become more
knowledgeable of the housing market through comprehensive yet
digestible, bite-sized videos and virtual walkthroughs of homes.
64% of consumers aged 18-24 have been influenced by social media in
their desire to purchase a particular type of home. In addition,
68% of consumers in this age bracket are most likely to have been
influenced by TikTok in their decision to purchase their desired
home.
Discerning Tastes in Luxury Living
While high interest rates and low inventory may cause some
consumers to settle or pause their home search altogether, luxury
consumers have only become more selective when purchasing their
newest property. Today's affluent buyers are more discerning than
ever, prioritizing location, privacy, wellness amenities, lifestyle
experiences and the latest technology.
Notably, the top three amenities desired by luxury consumers
according to the survey findings are privacy, breathtaking views
and garage space. Location is top-of-mind for luxury consumers when
choosing a home (45%), followed by price (39%). Wealthy Americans
prefer mid-sized to large modern contemporary styled homes, ideally
located on the West Coast.
High-tech security systems, smart lighting and energy-saving
solutions stand out as the top three preferred technologies among
luxury consumers. Notably, the preferences in smart home
technologies vary across age groups. Older generations (45+) lean
towards prioritizing convenience, while the younger demographics
(18–34) express a preference for privacy and security. Individuals
aged 35–44 prioritize health tech systems, such as air quality
control and water analysis sensors.
To explore the Trend Report and full survey results, visit
https://www.coldwellbankerluxury.com/.
QUOTES:
"After a year of high interest rates, housing shortages and
conflicted consumer sentiment, it's encouraging to see such a
positive outlook on the luxury real estate market for 2024. If
lower mortgage rate trends combined with the new inventory momentum
continues, luxury homebuyers could be inspired to move forward with
their next home purchase. As they prioritize new amenities,
features and even explore overseas options for their next property,
I'm excited to see our Coldwell Banker Global Luxury Property
Specialists guide both buyers and sellers to achieve their dream
homes."
- Michael
Altneu, vice president, Coldwell Banker Global
Luxury
"In contrast to the pandemic homebuying boom, we're seeing
luxury homebuyers more than willing to wait to find the perfect
house in 2024 that meets every single one of their needs whether
it's privacy, wellness amenities, lifestyle experiences, latest
technology or a combination of all those factors. Specifically,
turn-key, move-in ready homes with easy access to the best luxury
amenities provide buyers with instant gratification in attaining
their desired lifestyle. Whether it's purchasing the home that has
it all or upgrading their current home with trending features, I'm
looking forward to seeing both buyers and sellers enjoying the
decisions they make for their home this year."
- Jade
Mills, president, Jade Mills Estates and International
Ambassador of Coldwell Banker Global Luxury®
program
Methodology
The Coldwell Banker Global Luxury® program
collaborated with Censuswide, the Institute for Luxury Home
Marketing and Wealth-X to provide insights into real estate trends,
market sentiment, property investment and luxury spending
preferences. Censuswide surveyed 4,213 U.S. consumers, 25% of which
were luxury (1,053 respondents in total). Research was conducted
between Nov. 27, 2023 and
December 11, 2023. Luxury respondents
were classified as those aged 18+ with a household income of $1M+,
or who have bought a home in the U.S. worth $1M+ or are planning to
purchase a home in the near future worth $1M+. Censuswide abides by
and employs members of the Market Research Society which is based
on ESOMAR guidelines and principles. For more information on how
data was collected and defined, please refer to the full
methodology on page 4 of The Trend Report.
About Coldwell Banker Global
Luxury®
The Coldwell Banker Global
Luxury® program legacy traces its roots to 1933 and has
been a world leader in luxury real estate since. Coldwell Banker
Global Luxury Property Specialists are an exclusive group within
the Coldwell Banker® system, making up under ten percent
of independent sales associates affiliated with the brand
worldwide. Coldwell Banker affiliated agents conducted 48,444
transaction sides of homes priced at $1
million or more in 2022. This equates to $288 million in daily luxury sales with an
average sales price of $2.2 million
in this category.* Coldwell Banker, the Coldwell Banker logo,
Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury
logo are registered marks owned by Coldwell Banker Real Estate LLC.
Each franchise is independently owned and operated.
1. This data is sourced from an analysis of 130 U.S. markets
by the Institute for Luxury Home Marketing. For more information,
please reference the methodology section on page 4 in The Trend
Report.
Athena Snow
|
Jackie Hart
|
Coldwell Banker Real
Estate LLC
|
G&S for Coldwell
Banker Real Estate LLC
|
973.407.5590
|
845.505.7881
|
Athena.Snow@coldwellbanker.com
|
JHart@gscommunications.com
|
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SOURCE Coldwell Banker Global Luxury