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Baby Boomers Driving Luxury Home Market
Baby boomers between the ages of 40 and 58 are the driving force in today’s luxury home market and can be expected to move more often than other segments of the population, according to an online survey of 363 Coldwell Banker sales associates released in the early spring.
Of the baby boomers who purchased a luxury home through Coldwell Banker in the last two years, 52% told their sales associate that they planned on spending less than five years in their new home.
Eighty-six percent of the luxury home buyers said that they had purchased three or more homes during their lives, and almost half said that they had lived at their most recent residence for only one to five years.
Luxury homes were defined as those with a listing price of at least $500,000, priced within the top 10% of its market and of exceptional style and quality.
Sixty-five percent of the baby boomer clients said that they had moved because they wanted a bigger home. Only 17% said that they were looking to scale down and another 15% reported that their purchase was for a second or vacation home.
Sixty percent of the buyers purchased an existing single-family home, 21% new construction and 16% a condo or townhouse. Sixty-seven percent of the purchases were in the suburbs, 21% in the city, 10% in a rural area, 1% in a senior community and 1% in a college town.
Other findings in the survey:
- From a list of amenities, 47% of the baby-boom luxury-home buyers expressed interest in a main floor master suite; 44%, a three-car garage; 40%, a one floor home; 28%, a home gym, 15%, a home theater; and 12%, a guest house.
- Eighty-seven percent said they were interested in making changes to their home. Seventy-nine percent of those polled said they expected to make renovations involving the kitchen; 70%, bathrooms; 28%, a backyard deck; 27%, the complete house; and 16%, bedrooms.
- Boomers reported wanting homes whose location would accommodate their favorite pastimes, including shopping, 71%; golf, 69%; the beach or waterfront, 47%; biking, 24%; hiking, 22%; fishing, 12%; and athletic leagues, 6%.
Nearly 60% of the sales associates reported that baby boomers accounted for a large majority of their luxury home sales over the past two years.
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