MADISON, N.J., Oct. 25, 2021 /PRNewswire/ --
Today, Coldwell Banker Real Estate LLC, a Realogy (NYSE: RLGY)
brand, and the Coldwell Banker Global
Luxury® program released the "Real Estate's New
Power Players" report, part of the annual "A Look at Wealth"
series. The luxury real estate market is seeing yet another dynamic
year. Staggering wealth growth – driven by rebounding stock
markets, cryptocurrency gains and higher 401(k)s – combined with
soaring home prices and low interest rates meant buyers borrowed
and saved more while reinvesting cash, leading to the emergence of
a new set of Power Players redefining the meaning of luxury.
The report reflects that luxury real estate's latest movers and
shakers have had tremendous influence on the market over the last
18 months. Nearly three times as many individuals with a net worth
of $5 million and up own real estate
in the $1 million to $5 million range compared to numbers in 2019, an
180% increase of luxury property ownership in a three-year
period.
About 71% of those with a net worth over $5 million now own properties in the $1 million to $5
million range. In fact, luxury homes purchased from
January through August 2021 in the
$1 million to $5 million range jumped 142% for single-family
homes and 129% for attached properties compared to the same period
in 2019.
The growth in the volume of wealth has also been extraordinary;
between 2019 and 2020, it rose by over 21%, and escalated to 79%
when compared to January through August
2021 during the same eight months of 2019. Data from the end
of August 2021 already shows that the
volume of real estate wealth in the luxury property market is
greater than both the full years of 2019 and 2020.
Coldwell Banker Real Estate gathered the latest wealth research
and data generated by WealthEngine, Wealth-X, and other third-party
sources and combined it with anecdotal evidence from Coldwell
Banker Global Luxury® Property Specialists in the field
to identify luxury's affluent Power Players dominating the shifting
wealth archetypes in the current market. The four core groups
identified are having a major impact on the luxury real estate
landscape in 2021:
- Baby Boomers: Representing 51% of the Power Players,
Baby Boomers, those aged between 57-75, are speeding up their
retirement plans and moving into the home of their dreams. Many
Boomers have leveraged the equity of their primary residences and
sought out dream homes in more remote locales, like the rural
countryside or resort towns. There are 2,020,854 Boomers who
own more than three properties — the most out of any age
group.
- Golden Millennials: Golden Millennials, those aged
35-40, represent 60% of all millennial-owned luxury properties
today. Holding more focus on values and the desire for
sustainability and authentic living, this age group has shown a
greater propensity for secondary cities and suburban locations that
can offer them enough space for work, school and access to
amenities. The influence of Golden Millennials will be important to
watch as their wealth and real estate portfolios grow.
- Second Homeowners: Largely attributed to the pandemic,
many consumers desired a "get-away" residence, resulting in a rise
in second-home purchases. Their influence on the overall luxury
property market is one to watch; nearly 70% of those with a net
worth of $5 million and up own two or
more properties.
- Urban Repatriates: As COVID-19 restrictions ease, a
resurgence of the nation's cities is prevalent. Luxury attached
property values in 2021 increased an average of 14% compared to
2020 and 2019. Of the 184 U.S. cities reviewed by Wealth-X, there
are 1,647,110 properties owned by the affluent with a net worth of
$5 million and up in downtown cores
as of August 2021.
With suburban settings, resort markets and secondary cities
still booming, and major metropolises surging
back, Coldwell Banker Global Luxury® also
identified the top markets where Power Players are moving:
Baby Boomers
- Scottsdale, Arizona
- Sarasota, Florida
- Lowcountry, South Carolina
(including Hilton Head, Bluffton and Beaufort)
Golden Millennials
- Atlanta, Georgia
- Chicagoland, Illinois
- Seattle, Washington
Second Homeowners
- Monterey, California
- Coeur d'Alene, Idaho
- Park City, Utah
Urban Repatriates
- San Francisco, California
- Boston, Massachusetts
- Brooklyn, New York
Shifting the priorities of all generations, the pandemic formed
new hotspots in the luxury real estate market. As these Power
Players continue to make moves in the high-end housing landscape,
new definitions of luxury will emerge as they refine how and where
their wealth is spent.
CLICK TO TWEET: New Power Players are transforming the
luxury #realestate market through tremendous wealth growth – but
who are they? The latest #CBGlobalLuxury "A Look at Wealth" report
has the details:
https://blog.coldwellbanker.com/a-look-at-wealth-2021/
QUOTES:
"Our local luxury experts have once again identified the latest
trends in luxury real estate. In 2021, we've seen a continuation of
trends we began to see in 2020, from renewed focus on family,
health and wellness, to what we have seen this year with surging
stock markets, soaring home prices and increased savings – all of
these variables created a perfect equation for a profound shift in
the volume of wealth. These factors propelled the market to new
heights, altering the definition of luxury along the way."
-
Michael Altneu, vice president of
luxury for Coldwell Banker Real Estate LLC
"In 2021, luxury real estate market growth has remained at
unparalleled levels. The emergence of new Power Players flush with
cash has been transformative in many markets around the country as
affluent buyers flocked to sleepy rural towns, resort markets and
the suburbs, and are now contributing to the resurgence of major
cities. As interest rates remain low, paired with all-time high
demand and the return of international buyers, the luxury market
will continue to experience low inventory levels that we anticipate
will have a lasting effect in the years to come."
-
Judy Zeder, co-founder and
broker-associate of The Jills Zeder Group, Coldwell Banker
Realty
"The ALAW data show what I have seen this year: the L.A.
lifestyle will never grow old with buyers. Our beach cities,
including Malibu, Newport Beach and Santa Barbara are popular for second homes.
International buyers are also beginning to return to the L.A.
market, because people feel safe investing their money in the U.S.
With just a few months remaining in the year, sales in 2021 are
already outpacing both 2019 and 2020. In particular, our
$5 million and up market fared
extremely well."
-
Jade Mills, president, Jade Mills
Estates and International Ambassador of Coldwell Banker Global
Luxury, Coldwell Banker Realty
About A Look at Wealth
A Look at Wealth is a collaboration between the Coldwell Banker
Global Luxury® program and Wealth-X, WealthEngine
and the Institute for Luxury Home Marketing. Released once a year,
A Look at Wealth is a supplement to The Report, which combines
industry research with anecdotal insights from local market experts
affiliated with the Coldwell Banker® brand.
Methodology
The Coldwell Banker Global Luxury® program
collaborated with WealthEngine, Wealth-X and the Institute for
Luxury Home Marketing to provide insights into wealth creation,
real estate and property investment, luxury spending preferences
and new emerging trends regarding demographic and geographic
changes.
To profile the affluent with a net worth of $5 million+
population and its combined wealth, this report leverages the
unique and proprietary Wealth-X Database, the world's most
extensive curated research and intelligence on wealthy
individuals.
Data was also collected from the WealthEngine platform, which is
powered by more than 1,500 wealth and lifestyle attributes that
support half a trillion data points, and uses proprietary learning
science to create unique WealthEngine Profiles for more than 300
million people and 122 million households in the U.S. Information
was gathered on individuals ages 18 and above, with a net worth
(assets minus liabilities) of over $5
million as of August 31,
2021.
For more information on the methodology used in this survey,
please refer to pages 56-57 of the 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 organization,
making up under ten percent of independent sales associates
affiliated with the brand worldwide. Coldwell Banker affiliated
agents conducted 32,663 transactions of homes priced at
$1 million or more in 2020. This
equates to $168.4 million in luxury
sales every day (+16.6% YOY) with an average sales price of
$1.9 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.
About Realogy Holdings Corp.
Realogy (NYSE: RLGY) is moving the real estate industry to
what's next. As the leading and most integrated provider of U.S.
residential real estate services encompassing franchise,
brokerage, relocation, and title and settlement businesses as well
as a mortgage joint venture,
Realogy supported approximately 1.4 million home
transactions in 2020. The company's diverse brand portfolio
includes some of the most recognized names in real estate: Better
Homes and Gardens® Real Estate, CENTURY 21®, Coldwell
Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®,
and Sotheby's International Realty®. Using innovative technology,
data and marketing products, high-quality lead generation
programs, and best-in-class learning and support services, Realogy
fuels the productivity of its approximately 194,200 independent
sales agents in the U.S. and more than 142,700 independent sales
agents in 117 other countries and territories, helping them build
stronger businesses and best serve today's consumers. Recognized
for ten consecutive years as one of the World's Most Ethical
Companies, Realogy has also been designated a Great Place to
Work four years in a row and is one of LinkedIn's 2021 Top
Companies in the U.S.
Media
Inquiries:
|
|
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
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/staggering-wealth-growth-drives-luxury-real-estates-new-power-players-coldwell-banker-global-luxury-report-reveals-301407138.html
SOURCE Coldwell Banker Global Luxury