Coldwell Banker Real Estate LLC, an AnywhereSM (NYSE: HOUS) brand, and the Coldwell Banker Global Luxury® program, today released “The Trend Report,” showcasing increased consumer optimism in luxury real estate as the fourth quarter of 2023 welcomed fresh energy from luxury homebuyers.
Over one-third of surveyed luxury consumers feel that 2024 will be a better time to buy or sell a home compared to 2023 – indicating enthusiasm for luxury real estate as they pursue their dream home, according to the Coldwell Banker Global Luxury Consumer Survey.
Furthermore, the luxury market saw sales during the last quarter of 2023 increase nearly 4.2% for single-family homes and 14.2% for attached properties compared to the previous year, while new listings also increased by 14.2% for single-family homes and 7.2% for attached properties during the same period.[1] On average, luxury consumers surveyed plan on selling their home within the next 10 months.
Alongside the luxury consumer survey, “The Trend Report” explores top trends leading today’s luxury homebuying landscape, backed by additional insight and data from Coldwell Banker Global Luxury Property Specialists, the Institute for Luxury Home Marketing and Wealth-X.
The top six themes shaping the 2024 luxury real estate market identified by “The Trend Report” are:
- Shifting out of Neutral: Influences on the Luxury Market
- Have-It-All Properties
- The Influence of AI
- The High Earners, Not Rich Yet (HENRY) Factor
- Foreign Buyers
- Smart Homes
In addition to the trends and consistent theme that wealthy Americans have a more positive outlook on the real estate market heading into 2024, key findings from the Coldwell Banker Global Luxury Consumer survey include:
- Continued desire for affluent consumers to purchase a home abroad
- Social media’s tremendous role in homebuying decisions
- Location being the most important factor to consider when searching for a home
International Investments
America continues to be a real estate safe haven for many of the world’s wealthiest and influential consumers. According to “The Trend Report,” international buyers purchasing real estate in the top 5% of the market in 2023 saw 25% growth, indicating that international high-net-worth consumers continue to see to value of investing in the U.S. luxury real estate market. The top international buyers include China, Canada and the United Kingdom, and the most favored cities to purchase within the U.S. are New York, Los Angeles, Miami, San Francisco and Washington, D.C.
While international buyers look to America for their next property, wealthy Americans are also exploring opportunities abroad, with nearly 40% of survey respondents planning to buy a home in a foreign location within the next year and two-thirds of affluent consumers saying they plan to purchase a home abroad within the next five years. Europe is the top destination among luxury consumers (29%), followed by North America outside the U.S. (28%) and the Caribbean (23%).
Social Media Influences Luxury Buyers
Social media is overwhelmingly influencing luxury consumers to purchase their dream home. A whopping 73% of affluent consumers say they have been influenced by social media to purchase a particular home they desire. Instagram (45%), YouTube (45%) and TikTok (44%) are the top social media platforms that have influenced luxury consumers to purchase their dream home.
For the younger generations of luxury homebuyers like millennials and Gen Z, TikTok has especially become an enormously popular platform to connect with real estate agents to become more knowledgeable of the housing market through comprehensive yet digestible, bite-sized videos and virtual walkthroughs of homes. 64% of consumers aged 18-24 have been influenced by social media in their desire to purchase a particular type of home. In addition, 68% of consumers in this age bracket are most likely to have been influenced by TikTok in their decision to purchase their desired home.
Discerning Tastes in Luxury Living
While high interest rates and low inventory may cause some consumers to settle or pause their home search altogether, luxury consumers have only become more selective when purchasing their newest property. Today’s affluent buyers are more discerning than ever, prioritizing location, privacy, wellness amenities, lifestyle experiences and the latest technology.
Notably, the top three amenities desired by luxury consumers according to the survey findings are privacy, breathtaking views and garage space. Location is top-of-mind for luxury consumers when choosing a home (45%), followed by price (39%). Wealthy Americans prefer mid-sized to large modern contemporary styled homes, ideally located on the West Coast.
High-tech security systems, smart lighting and energy-saving solutions stand out as the top three preferred technologies among luxury consumers. Notably, the preferences in smart home technologies vary across age groups. Older generations (45+) lean towards prioritizing convenience, while the younger demographics (18–34) express a preference for privacy and security. Individuals aged 35–44 prioritize health tech systems, such as air quality control and water analysis sensors.
To explore the Trend Report and full survey results, visit https://www.coldwellbankerluxury.com/.
QUOTES:
“After a year of high interest rates, housing shortages and conflicted consumer sentiment, it’s encouraging to see such a positive outlook on the luxury real estate market for 2024. If lower mortgage rate trends combined with the new inventory momentum continues, luxury homebuyers could be inspired to move forward with their next home purchase. As they prioritize new amenities, features and even explore overseas options for their next property, I’m excited to see our Coldwell Banker Global Luxury Property Specialists guide both buyers and sellers to achieve their dream homes.”
- Michael Altneu, vice president, Coldwell Banker Global Luxury
“In contrast to the pandemic homebuying boom, we’re seeing luxury homebuyers more than willing to wait to find the perfect house in 2024 that meets every single one of their needs whether it’s privacy, wellness amenities, lifestyle experiences, latest technology or a combination of all those factors. Specifically, turn-key, move-in ready homes with easy access to the best luxury amenities provide buyers with instant gratification in attaining their desired lifestyle. Whether it’s purchasing the home that has it all or upgrading their current home with trending features, I’m looking forward to seeing both buyers and sellers enjoying the decisions they make for their home this year.”
- Jade Mills, president, Jade Mills Estates and International Ambassador of Coldwell Banker Global Luxury® program
Methodology
The Coldwell Banker Global Luxury® program collaborated with Censuswide, the Institute for Luxury Home Marketing and Wealth-X to provide insights into real estate trends, market sentiment, property investment and luxury spending preferences. Censuswide surveyed 4,213 U.S. consumers, 25% of which were luxury (1,053 respondents in total). Research was conducted between Nov. 27, 2023 and December 11, 2023. Luxury respondents were classified as those aged 18+ with a household income of $1M+, or who have bought a home in the U.S. worth $1M+ or are planning to purchase a home in the near future worth $1M+. Censuswide abides by and employs members of the Market Research Society which is based on ESOMAR guidelines and principles. For more information on how data was collected and defined, please refer to the full methodology on page 4 of The Trend Report.
[1] This data is sourced from an analysis of 130 U.S. markets by the Institute for Luxury Home Marketing. For more information, please reference the methodology section on page 4 in The Trend Report.
