How do affluent consumers view their real estate investments now and in the future? Who is buying luxury real estate and why? Coldwell Banker Previews International® collaborated with the Luxury® Institute LLC to answer some of those questions in the forthcoming Fall 2013 Luxury Market Report.
According to the survey of Americans with a minimum gross annual household income of $250,000, most of today’s affluent consumers report that they own at least one home and express confidence in the value of owning real estate. While location is still the most important deciding factor in a home purchase, one in five affluent consumers and 24% of ultra affluent consumers say that they are not limited by geography and have the freedom to purchase a property that truly fits their lifestyle. Wealthy young buyers are also making inroads in the luxury real estate market, and they are willing to pay more to do so. The survey found that 43% of younger wealthy consumers are considering the purchase of residential property in the next 12 months, compared to 21% of those aged 55 and older. On average, these younger wealthy consumers spent more than $2.11 million on their most recent purchase of residential property, more than twice the average amount spent by older and similarly wealthy luxury buyers, which was $1.07 million.
You can read more in the report on Previews Inside Out.