As our lives have become busier, a home that supports a high quality of life has become an increasing driver in purchasing decisions for today’s luxury buyer, who now favor warm gathering places where family and friends get together.
Square footage as a status symbol has been replaced by a gravitation toward smart, efficient, amenity-rich homes.
Luxury Consumer Still Hungry, But Appetite Has Changed
Smart Luxury, Smart Investments
Homeownership has long been part of the American Dream. The caviar dreams of the luxury consumer are consistent with that: 75 percent of luxury homebuyers surveyed believe homeownership is a more sound investment than the stock market. However, lifestyle factors have pushed aside the priority of large-scale specs.
- Today’s haute-home features have evolved past marble surfaces and gilded accents to state-of-the-art security systems, climate control, lighting and keyless entry systems that can be controlled by mobile devices.
- “There is a good amount of buzz around things like Wi-Fi-enabled thermostats, refrigerators, door locks, entertainment systems, lighting controls such as HUE lights and security features.
With the eco trend still on everyone’s mind, you may be surprised to learn that when it comes to their dream home, a majority (66 percent) of luxury home-buyers surveyed says a “smart” home is more important to them than a “green” home.
- Perhaps this is because smart-home technology continues to innovate at breakneck speed, and the products and materials that help a large home shrink its carbon footprint may be perceived as expensive and challenging to implement.
- When house hunting, 87 percent of luxury home buyers surveyed would not consider living in a home that isn’t tech-friendly.
- This brings forward a new set of considerations for the real estate professional as they serve as advisers to the luxury set.
Luxury buyers want to be able to entertain more easily, make the most of their family time and have peace of mind about how their home is being managed when their busy schedules take them out of the home. Tech allows all of that to happen.
Luxury Values
A recent Wealth vs. Worth study by Traditional Home magazine, published by Meredith Corporation, the publisher of Better Homes and Gardens, discovered an attitudinal shift among affluent consumers over the past few years.
- For this consumer, the drive to make more money has become the drive to make more time to enjoy their money. In other words, time is the ultimate luxury. And this consumer considers the impact their purchases will have on those who matter to them the most.
- They want to spend their money on experiences and creating memories.
- A majority of luxury homeowners surveyed prefer owning multiple “lifestyle” homes to support activities like beach vacations, or attending cultural events.
- More than half (58 percent) of luxury home-buyers already own multiple homes to support their lifestyle activities.
Comfort and lifestyle benefits take precedence over square footage.
Sixty percent of luxury home-buyers surveyed would rather have as many upgrades as they can afford in their home, rather than more square footage.
Read more Keeping Up With the New Joneses: Redefining Luxury