New data from global luxury real estate brand identifies four subsets of Gen X and Millennial homeowners who will lead the luxury real estate market in 2021 and 2022
NEW YORK, September 27, 2021 / CNW / – Engel & Völkers released today The next luxury home seller, a consumer trends report based on data from EVI, the proprietary data center of Engel & Völkers, which identifies the demographics and mindset of luxury home sellers in North America, defined as homeowners who plan to sell a home for more than $ 1 million in 2021 or 2022. Generation Y and Generation X will account for 80% of these luxury home sellers, motivated by the desire to be close to family and the freedom to pursue the lifestyle they want, in places they want to call home.
“The past year has been marked by a sharp increase in demand for housing, which has resulted in record levels of inventory with corresponding rising prices and a burning market in all of North American real estate,” said Anthony hitt, President and CEO, Engel & Völkers Americas. “However, in every market situation there are owners willing to sell. The key is to identify which consumer segments belong to that group, and that’s what we’ve done in this new trend report. at a time when the market is changing very rapidly, we have put together the information that will allow real estate professionals to stay ahead of consumer trends and provide their own clients with an edge when buying or selling selling a house now. “
Engel & Völkers’ EVI has identified four distinct segments of Gen Y and Gen X luxury home sellers that will drive luxury real estate sales through 2021 and 2022:
- Richest Millennials: Over 65% of Millennials with household income levels of $ 250,000 + plan to sell a home in 2021 or 2022, which is more than half of all home sellers in this wealthy demographic. However, the richest Millennials don’t shun cities. Quite the contrary, since 60% say they want to buy in an urban city. Instead of moving from suburban or rural environments, this feeling actually represents a shift in priorities among the wealthiest Millennials. Eighty-three percent already own properties in urban cities and an overwhelming 96 percent said their parents are currently living with them or think their parents will move in with them in the future. This suggests that the wealthiest Millennials stay in urban environments and seek spaces that can better adapt to current or future multigenerational living.
- Millennial entrepreneurs: Millennials made up two-thirds of luxury home sellers who are also starting a business. No longer constrained by the limitations of a physical office, remote working allowed millennial entrepreneurs the flexibility to run their businesses from anywhere in the world. As a result, 29% of millennials are moving into new areas. While the majority of this cohort indicated that they preferred to live in an urban city, a significant percentage of 28% would like to move to rural areas. This may be because millennial entrepreneurs are very family oriented. People in this segment are more likely than their peers to be married, live with a partner or have young children, and 20% are responsible for the care of at least one parent. It is perhaps not surprising then that 83% of Millennial Entrepreneur home sellers have pledged to make a lifestyle change in the wake of the pandemic to ensure they are never separated from their families again. .
- Covid HENRY: HENRY is the acronym for “High Earners, Not Rich Yet” and refers to young professionals who have an annual family income of between $ 100,000–$ 250,000. Covid HENRYs are the Millennial and Gen Z generation who emerged from the pandemic in this salary bracket, but did not amass the same amount of wealth as the older generations who are in the workforce for a longer time. More than half of all luxury home sellers in 2021 and 2022 will be Covid HENRYs. A third of Covid HENRYs work remotely and nearly half of Covid HENRYs wish to travel the world and have more unique experiences. Forty-one percent of Covid HENRY luxury home sellers also own a second home, indicating a desire to sell in order to more actively pursue travel and experiences. Overall, Covid HENRYs are more evenly distributed when it comes to their desire to live in a city (49%) or in the suburbs (43%).
- The first retirees of Generation X: More than one in five Gen Xers who retire early plan to sell a home in 2021 or 2022, which is 27% of all luxury home sellers. Historically, those entering retirement plan to downsize their homes. However, today’s early generation X retirees are faced with atypical situations. Thirty-nine percent have adult children, parents or other extended family living with them in their home. In fact, 58% of Gen X early-retirement luxury home sellers have moved their families in since the pandemic, prompting them to list their current homes in favor of larger homes with more bedrooms. More than half of Gen X early retirement luxury home sellers are looking for their next home in rural areas.
Overall, luxury home sellers in 2021 and 2022 are primarily focused on family and space. They make housing decisions based on whether they live with or near family members and whether they have enough space to do so comfortably. Sixty-seven percent of luxury home sellers who currently live in an urban market would like to stay in a city, indicating that city dwellers do not, in fact, shy away from their cities. On the contrary, the pandemic has shifted priorities so that luxury home sellers are looking for homes that allow them to live where and with whom they want.
Engel & Völkers took the data deeper by using MaX, its proprietary data-driven technology platform that provides marketing insights, to identify the marketing platforms that will have the most influence among luxury home sellers when they will choose a real estate professional to represent them in the sale. Available for download in the full report, these results are broken down by owner of United States and Canada.
To download the full report, visit: https://www.evfranchise.com/the-next-luxury-home-seller.
In partnership with Researchscape, Engel & Völkers Americas surveyed 1,700 respondents from all over North America Between June 22 to 23, 2021.
About Engel & Völkers
Engel & Völkers is a global luxury real estate brand. Founded in Hamburg, germany in 1977, Engel & Völkers draws on its rich European history to offer a new approach to luxury real estate in the Americas with an emphasis on creating a personalized customer experience at every stage of the purchasing process or selling a home for today’s savvy homeowner. Engel & Völkers currently operates approximately 225 stores with 4,500 real estate advisors in the Americas, contributing to the brand’s global network of more than 13,500 real estate professionals in more than 34 countries, offering private and institutional clients a range of services bespoke luxury, including real estate and yachting. Committed to exceptional service, Engel & Völkers supports its advisers with a range of top quality business services; marketing programs and platforms; as well as access to its global network of real estate professionals, property listings and market data. Each brokerage is independently owned and operated. For more information visit www.evrealestate.com.
SOURCE Engel & Völkers
For more information: Katelyn Castellano, Engel & Völkers Americas, +1 646 517 3105, [email protected]; Heidi Ruggier, Matte PR, 416-515-7667 Ext. 705, [email protected]