Young Buyers Define What “Luxury” Means to Them

Millennial home-buyers, many of whom are entering their 30s, are building wealth and showing interest in high-end homes, according to a July 1, 2019 article in Realtor magazine written by Jeff Lottman.

“In 2017, buyers younger than 35 purchased nearly a quarter of homes constructed by Toll Brothers, the largest luxury home-builder in the U.S.,” Lottman writes.

Here are a few of the luxury home features these buyers desire.

  1. Less space, more functionality. “Millennials are foregoing larger houses, choosing smaller luxury homes that make smart use of space and are filled with high-end amenities and furnishings,” the article states. This includes features such as open-concept living areas and showcase kitchens, spa-like bathrooms, and multi-use rooms – such as an art or yoga studio that can be converted to a spare bedroom for overnight guests.
  2. A portal to the Internet of Things. This means constant connectedness for telecommuters, for example. But it also means the ability to create a smart home through connected devices including smart appliances, speakers, thermostats, lighting and security systems.
  3. Green features. This can include not only energy efficient appliances, but solar panels, indoor air purification systems, geothermal energy systems, and tankless water heaters, which often come with tax benefits and positive return-on-investment (ROI).
  4. Greater commuting options. “As millennials flock to urban areas, walkability and proximity to public transportation are highly sought-after attributes,” states Lottman. They want to walk to restaurants, community gathering areas and entertainment. In addition, they may also want to use public transportation, rideshare programs and even bike lanes.
  5. Indoor and outdoor living spaces. “Millennials want to stretch their living areas beyond the walls of their homes to include outdoor spaces,” the article continues, “especially for those who live in cities, where green space is at a premium.” Creative builders are making sure to add balconies, decks or rooftop gardens to meet this need. “High-end condo developers started adding lush outdoor amenities meant to encourage wellness, including entertaining, relaxing and practicing mindfulness.” Examples include “an outdoor yoga deck in Los Angeles, an adult treehouse in New York, and a tranquility garden complete with lemon trees in Florida,” Lottman concludes.

It seems the definition of “luxury” is evolving right along with new generations of home-buyers.