Are Millennials Buying Luxury Properties?
Updated: Mar 1
Luxury Condos for a Younger Generation
In recent studies, the millennial generation are hitting the buying stage for homes and even though many reports show the younger crowd make less income, there are a lot of signs pointing to this demographic having the ability to afford luxury properties. Not only can they afford this type of housing, they’re interested in being homeowners in the luxury condo sector. What we’ve learned is many of these 30-somethings, are investing in properties becoming the buying force for 2020 home sales. Read on to learn more.
How do Millennials Make Money?
We expect millennials to surpass 4-trillion dollars by 2030 as an annual income. With this strong prediction, it only makes sense to cater to these individuals and not assume the astigmatisms they’re lazy and can’t afford to buy a luxury home. With a good majority of this group pioneering digital media, coding and other lucrative start-up companies, Gen Z can afford more than the average first-time buyer. These individuals are taking top paying jobs with a bachelor’s degree or less and making close to 6-figures. From data analysts to software developers these adults are successful with their career choices. According to a survey of over 1,000 participants between the ages of 20-34 state salary is the most important factor in making career decisions. With this knowledge, the age group appears to be candidates and are investing in more luxury properties than before.
Why Millennials Want Luxury Properties
Many of the homebuyers in this age group also strive for work-life balance. It's also important to note these folks are looking to work from home and want properties with home offices. Not to mention they possess a zest for personal life, financial freedom and enjoy flexible work schedules where they have more time to enjoy leisurely lifestyles. In addition, they enjoy staying fit, where living in cities having a robust recreational space is a priority. Condominium and high-rise communities fit their needs to live the way they desire. Mortgages are also not an issue with this age group as many of these individuals are creative finding solutions such as renting out a room to using their homes as Airbnb investments. Perhaps these are some vital reasons for real estate agents to cater to the 2020 hot prospects?
What type of Luxury Properties do the Millennials Invest in Today?
Since there’s a lack of starters-homes in the area, many of the millennials are looking to invest in the luxury home market. Condominiums are among the hottest style for this age group where they are making waves and not just in the Atlantic or Pacific Ocean. The younger residents are looking for places to raise families, they’re also seeking nearby amenities such as being close to transportation, shopping and restaurants. Cities serving this population are attractive with an urban paradise as well as a place offering balance in the neighborhood. Safety and school ratings are also high on their criteria for buying a home and top on their list.
How Can They Afford the Mortgage?
The average rent in places like Boca Raton is around $2,033 with an increase of 4% from last year. These units roughly measure a little over 1,000 square feet. If a homeowner is stretching payments within 30 or 40 years, they can come close to the same amount as the renters. Not to mention, many of this generation is using inheritances, and Co-signers like a parent or grandparent to help off-set some expense or requirements to obtain a mortgage. This generation is also more comfortable with roommates giving them additional opportunity to afford a high-rise of $700,000 or higher. Ask any of these young adults and they’ll explain how they can dive into the expense of homeownership and they’ll have a practical plan making them a qualified homebuyer.
A Five-Year Prediction for Gen Z
According to an article in Forbes Magazine by 2025, Gen Z will take up around 50% of the luxury market. With careers such as brand influencers and bloggers, we’ll continue to watch the 30s rise to stardom and mainstream being true luxury buyers. That goes for housing and not just name brand handbags. Influencers such as Chiara Ferragni made $8-million dollars by 2016 with her fashion blog. With these types of people to follow, there’s no doubt they too want to live in suitable housing. Not to mention, there’s a good amount of real estate influencers who are becoming more popular driving business among their followers but demonstrating what type of communities and properties are in reach. The trends will become the norm over the next 5-years where we’ll see more digital media driving the market and especially for the next wave of homeowners.
Wealthy Millennials Seek Convenience and Amenities
Rich millennials are looking for new, clean and modern types of housing and not the ‘fixer upper’ everyone assumes they want. They seek quality over the size of a unit and are very frugal with their money. Individuals in this real estate sector enjoy neighborhoods with walkability to their favorite activities such as parks or entertainment. Gen Z also looks for green-friendly and smart home solutions protecting the environment. While the eclectic grandmother décor is a trend, most of this homebuyer is seeking modern and contemporary interior designing. Outdoor living spaces are yet another attraction when they are hunting for a new home. With all the convenience and amenities our Boca Raton housing has to offer it’s no surprise why they are looking to invest in our city.
We Take Millennials Seriously and Here’s Why
With Gen Z making the income, finding the solutions toward availability and having the homes they want, it’s only practical to take this age seriously. Boca Raton luxury condominiums meet the needs of the younger crowd making this an appealing location for many investors and home buyers. Also, with the many technologies and media firms in the area, it’s no surprise Boca Raton is on the top list for prime locations. We’re just happy to help this generation as we do the rest of our home buyers and sellers.
For more information on luxury condominium lifestyles and living, contact our offices.