Millennials and Gen Xers will overwhelmingly be the ones selling luxury homes next year, according to a new report from Engel & Völkers.
This trend will be seen all across North America in 2022, with millennials and Gen Xers making up a whopping 80% of all luxury home sales. Nearly 50% of the sales are set to be from millennials alone, and for many of them, it will be their first time selling a home.
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Housing markets across the continent have surged during the pandemic, tightening conditions and making it hard for first-time buyers to break into the market.
“The past year has seen a significant surge in housing demand, resulting in record-low inventory levels with rising prices to match and a red-hot market across North American real estate,” said Anthony Hitt, president and CEO of Engel & Völkers Americas.
“However, in every market situation, there are homeowners willing to sell. The key is to identify which consumer segments fall within this group, and that is what we have done in this new trend report. At a time when the market is moving very quickly, we’ve gathered the intelligence that will allow real estate professionals to stay ahead of consumer trends and provide their own clients with an edge when buying or selling a home right now.”
Perhaps not too surprisingly, the majority of these wealthy millennials looking to sell — 83% — are living in urban cities. And they’re not planning to leave. In fact, 60% said they’re looking to buy in an urban city. Interestingly, of those who identified as millennial entrepreneurs, 28% said they were looking to move to rural areas, which the report attributes to millennial entrepreneurs being “very family-oriented.”
“Across the board, luxury home sellers in 2021 and 2022 are focused primarily on family and space,” the report reads. “They are making housing decisions based on living with or near family members, and ensuring that they have enough space in order to do so comfortably. Sixty-seven percent of luxury home sellers who currently live in an urban market would like to remain in a city, indicating that urbanites are not, in fact, fleeing their cities. Rather, the pandemic has shifted priorities so that luxury home sellers are pursuing homes that allow them to live where, and with who, they want.”