Home is Where the Heart (of Young Affluents) Is

Thursday, May 29th, 2014
Contributed by:

marketing to young affluents investing in real estate

Young Affluents are investing in real estate.

After witnessing the Wall Street meltdown and their parents’ nest eggs crack open during the recession, Millennials are keeping their money close to home as in…their homes. For Generation Y, buying real estate appears more safe and less volatile than the stock market for good reason: home prices have come back to earth and interest rates remain very low.

There are more young affluents ($100K+ HHI) than in previous generations and this expanding group of real estate investors are buying more expensive first homes and investing in second homes. It helps that interest rates are even lower for jumbo mortgages over $400-$600K depending on the area.

Key findings among young affluents from a recent study include:

  • 90% are homeowners.
  • 21% bought a primary residence in the past 3 years, compared to only 9% of those 50 or older.
  • 12% plan to buy a second home over the next 1 to 3 years, compared to 7% of the 50+.

 

Gen Y home buyers are behaving very differently than their parents:

  • Career is priority one in determining location.
  • They prefer to be close to travel opportunities (within metro areas).
  • Singles are buying homes.
  • They want their dream homes to entertain them — whirlpool, sauna, fitness room and entertainment center are all part of the package.

 

By some accounts this is the hardest-to-reach, but freest spending generation, which is why marketers should simply reach them directly via mail, email, telephone and online.

Yes, many are finding themselves marginalized in a difficult job market. But there are numerous “Young Affluents” who’ve landed high-paying jobs, profited from stock options and/or benefitted from the passing of wealth from the previous generation to theirs. This is the group driving the luxury real estate and upscale home renovation markets today.

 

 

Leave a Reply

Wealth Window Blog

Subscribe to Our Blog

Recent Posts

Archives

Categories