Market Trends of North America Luxury Residential Real Estate Industry
This section covers the major market trends shaping the North America Luxury Residential Real Estate Market according to our research experts:
Emergence of the Millennial Generation in USA
The majority of wealthy millennials are in their thirties. Because many of them can now work from home, their desire to establish a family, combined with the option to relocate to a lower density location, not to mention receiving a low-interest mortgage, creates a perfect storm in favor of buying rather than renting. Approximately 81 percent of Americans aged 23 to 31 who bought a home were first-home buyers, whereas only 48 percent of home buyers between 32 and 41 bought their first home in 2021.
However, millennials are now recognized as one of the real estate's most significant customer groups. According to the National Association of Realtors, 38 percent of millennials currently own houses in the United States. According to Sotheby's International Realty Statistics, millennials bypass modest residences in favor of larger, more luxurious ones.
The epidemic forced them to stay indoors for unusually long periods and reconsider their homestay alternatives. They now want to acquire large homes that accommodate their family's various demands, including the home office. It also shifted their priorities, with many preferring to invest in luxurious houses rather than go to exotic locations. Of course, some market considerations have also played a role.
Constant Residential Real Estate Investments
Despite the growing economic instability and the potential of a third COVID-19 wave, High Net-Worth Individuals (HNIs) continue to invest in luxury real estate. However, many people's motivations for investing in these homes have shifted. For example, many people are now motivated by the desire to improve their health and living standards.
Even after eight years of steady home price increase, the great housing boom in the United States continues undisturbed. It has benefited from low-interest rates and the government's large stimulus programs designed to minimize the epidemic's effects. The market's limited supply of houses has resulted in rising real estate prices.
According to Standard and Poor's, house prices continue to grow rapidly in all of the country's 20 main cities, with Phoenix reporting the biggest year-on-year increase of 32.41 percent in July 2021, followed by San Diego (27.79 percent) and Seattle (27.79 percent) (25.5 percent ).
While individuals prefer connectivity, open spaces within and outside living places are vital to people, particularly after COVID-19, to preserve their physical and mental well-being. The health advantages of living in big homes surrounded by nature and a pleasant atmosphere attract purchasers to invest in luxury residences.
