It is no secret that consumer and buyer behavior has shifted—especially in the affluent market. Here are three key critical factors that will shape the luxury real estate market in the coming year.
More than ever, homebuyers are prioritizing health and security above all else. And that’s not a bad thing. In fact, Google searches for luxury, master-planned communities have increased in recent months. Why? Master-planned communities are low-density, controlled environments in which safety is built in. And, as multiple studies show, buyers are willing to pay more for a healthy home/environment as a result of COVID-19.
2.) “Hipsturbia Effect”
As urban areas continue the inexorable rise in real estate prices, homeowners have begun a steady exodus toward the suburbs. People want room to breathe. Big cities are crowded and congested. Families are fleeing densely populated urban areas and seeking alternatives: settings that are more progressive, community-centric, and walkable. This movement has been dubbed: Hipsturbia.
3.) Back to Nature
As big cities bulge and expand, concrete jungles have replaced parks and green spaces. People feel cut-off from nature—and they don’t like it. Both older and younger generations are placing a premium on living experiences that keep their families more dialed into nature and its attendant beauty: majestic mountains, healthy rivers and streams, old-growth forests, pristine beaches, and the like.