We usually associate luxury real estate with the baby boomer generation, but there’s a huge opportunity with millennials. This younger generation makes up about one-third of the population and the interest to purchase continues to grow. Luxury doesn’t necessarily mean “large” homes to them; it means functional, creative spaces. Additionally, millennials are knowledgeable when it comes to investing real estate. They are constantly looking for ways to grow their personal wealth without the risk of engaging in the stock market.
Millennials are now getting to the point where they’re settling down and considering big-ticket purchases, the main one being a home. According to Bloomberg Business, by about 2020, they will represent the majority of the workforce with an annual spending of $400 billion, and even though they seem to still value the idea of home ownership, don’t go ahead and assume they will go about it the same way their parents did.
This generation grew up right in the middle of the perfect storm that was the Great Recession. Because of this, they seem to be more careful with their spending decisions, especially incredibly large ones. With a somewhat cautious mindset as a result of stagnant wages, rampant unemployment and lingering memories of the housing crisis, Millennials seem to be opting for rentals over home ownership at the moment.