With each passing year, millennials increase their force in the market, and in many ways, the pandemic has only accelerated existing trends, said expert panelists on day three of Mansion Global’s Luxury Real Estate Conference on Thursday. Among those trends: an increased focus on health, sustainability, and political and social awareness, as well as an aggressively digital-first approach.
“These younger collectors spend their money with a purpose,” said Dustyn Kim, chief revenue officer of Artsy. “They have a strong inclination to support groups that have been historically marginalized in the art world and beyond. [These buyers] want to support artists, people and causes they care about.”
The same phenomenon can be seen in younger buyers’ approach to the housing market. “This generation, more so than previous generations, pays attention to what’s going on in the world globally, environmentally,” said Kofi Nartey, founder and CEO of GLOBL RED. “And that’s all the way down to the agents and brokers they engage with. Eighty-four percent of millennials want to engage with companies that are socially conscious.”
More: Residential Real Estate Returns to Earth, but Will Remain Strong
And while high-earning-millennial buyers are making their spending power known in the housing market, for such a wide-ranging demographic bracket, it’s important not to treat them as a monolith.
“[Home] prices have risen 20% from last year,” said Lawrence Yun, chief economist for the National Association of Realtors. “For some millennials it’s difficult to buy, and at the same time, some have a very high income and are looking at luxury properties. It’s a mixed picture for millennial home-buying potential.
Below, more insights on the digital future of the housing market, accelerating health and wellness trends, and more highlights from Thursday’s panel discussions:
High-tech features are no longer a luxury-they are a necessity. A look at the ways they will be incorporated in the homes of the future.
Click to view live discussions at the 2021 Luxury Real Estate Conference
The Next Generation of Smart Home Tech
With buyers suddenly stuck at home and hyper-focused on their domestic surroundings, smart home technology has, unsurprisingly, been a gangbusters business throughout the pandemic.
“‘Frenzy’ is an understatement,” said John Clancy, executive vice president, residential, at Crestron Electronics. “People are spending more time in and money on their homes than ever before. Demand has been the greatest at the very high end.”
Rather than an eye-catching perk, luxury buyers now view the presence of smart home technology as de rigueur.
“Nowadays, anyone buying a high-end home expects some level of technology to be incorporated,” Mr. Clancy said. “With today’s solutions you have the ability to add things a la carte, wirelessly, even in a building that’s 100 years old. You can do features …….