Rich millennials, dubbed the “New Aristocracy”, are shaping to be a profitable and impactful generation in the world of real estate. According to a recent report by Luxury Portfolio International, New Aristocracy buyers, driven by large inherited wealth, are setting their sights for larger homes with an assortment of features and amenities.
The average New Aristocracy buyer is aiming to spend at least $1 million on a new home within the next one to three years. According to the report, 54 percent desire an urban environment for their home, as opposed to suburban (38 percent) and rural (9 percent) environments.
The group’s desired living space is an area of 5,000 square feet or larger. In fact, 53 percent of these buyers are aiming for a home over 7,500 square feet, and 23 percent desire a staggering 20,000 square feet. These numbers can be attributed to the fact that these young consumers are looking to accommodate their growing families and wanting to lay down the foundation for their future generations to prosper under the same roof.
In addition, these New Aristocracy consumers want highly-desired features for their future homes. Some of these amenities include nearby restaurant and fine dining options, outdoor spaces like terraces and patios, multiple-view surveillance cameras, advanced security systems and commercial-grade kitchen appliances.
The New Aristocracy is primarily composed of consumers aged 25-49 who have had the advantage of growing up in a modernized, social media-powered society. They grew up with more formal and sophisticated education, more aware of their individual tastes and have honed their skills to survey brands and the real estate market as a whole. Overall, their exposure are to multiple facets of luxury lifestyle like travel and fashion have shaped them into extremely savvy individuals who have strong, various demands.
In retrospect, New Aristocracy consumers will be prioritizing large living space, security and modern technology in their home purchases, necessities that were once only considered amenities for the wealthy.