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Here are the highlights of the report (see below to read the whole article):
According to a report produced by WealthEngine, Wealth-X and The Institute for Luxury Home Marketing (ILHM), there has been an 180% increase in luxury property ownership in a mere three-year period.
Regarding construction of The George in downtown Durham (a 7-floor condo building, with residences starting in the $400s and the highest priced units over $2m), Jim Wiley, President of Beacon Street Development Company, said, “Our buyers put value on what really means something to them. In our case, they're placing a premium on lifestyle and value, not just square footage.”
Many buyers were inspired to finally buy their dream home during the pandemic and competed for move-in ready homes with attractive features - and sellers generated a premium for them. In August of 2021, the Raleigh area saw steep competition for housing which yielded the most bidding wars nationally over that period with 87% of homes having multiple offers, making us the most cutthroat real estate market in the country. The typical home value in the area was also up 23.5% that month over the prior year.
Our local tech talent accounts for over 9% of our working population, and Raleigh-Durham was ranked #3 by LinkedIn for metros whose tech communities are growing fastest.
ILHM has identified four groups of buyers driving much of this demand.
The Baby Boomers are skipping the downsize and purchasing homes of their dreams.
The inability to travel and life stage of the 35-40 year old Golden Millennial (those getting married or having children) has driven home buying decisions among this group.
Rise among those Second Homeowners that began in 2020 during the start of the pandemic continues today with affluent individuals looking for a second home for investment or to align with remote work and YOLO (you only live once) mindsets.
Many eclectic city dwellers and first-time buyer Millennials and older Gen-Zers known as Urban Repatriates are looking to capitalize on low interest rates and are seeking more square footage, outdoor spaces and have returned to purchasing downtown properties.
Millennials are also the most educated generation in history, have higher earnings and are set to inherit more wealth than any prior generation, according to a May 2020 report by the Brookings Institute. And for the Triangle area, flush with millennials with a median age of 37.5 years, many of which not surprisingly at high earning tech jobs, the direction of the luxury real estate market may never look the same.
[*]ILHM has identified four groups of buyers driving much of this demand.[/list]
The Baby Boomers are skipping the downsize and purchasing homes of their dreams.
The inability to travel and life stage of the 35-40 year old Golden Millennial (those getting married or having children) has driven home buying decisions among this group.
Rise among those Second Homeowners that began in 2020 during the start of the pandemic continues today with affluent individuals looking for a second home for investment or to align with remote work and YOLO (you only live once) mindsets.
Many eclectic city dwellers and first-time buyer Millennials and older Gen-Zers known as Urban Repatriates are looking to capitalize on low interest rates and are seeking more square footage, outdoor spaces and have returned to purchasing downtown properties.
Millennials are also the most educated generation in history, have higher earnings and are set to inherit more wealth than any prior generation, according to a May 2020 report by the Brookings Institute. And for the Triangle area, flush with millennials with a median age of 37.5 years, many of which not surprisingly at high earning tech jobs, the direction of the luxury real estate market may never look the same.
Gen X has been forgotten once again
(leave us alone, we're used to it!)
My thoughts exactly when I was reading this...it's always Millennials Millennials Millennials
I guess we just got left out of the conversation entirely (again!) because many of us are at the stage in life where we're too busy running things and dealing with kids and aging parents to worry about frivolous things like buying our luxury dream home.
A fellow Gen-Xer here. Post this half in fascination and half in laughter. Well, probably more like 40-60, but whatever.
Anyone who pays over $2 million for a condo in downtown Durham isn't putting a premium on "lifestyle and value," no matter what anybody claims. I've seen the luxuries claiming to be provided at The George (ugh, what a name), and none of them can match what I have with my shaded backyard and porch swing. Wonder how many will move in and start complaining about hearing train traffic or fireworks after the Bulls games at night?
My thoughts exactly when I was reading this...it's always Millennials Millennials Millennials
I guess we just got left out of the conversation entirely (again!) because many of us are at the stage in life where we're too busy running things and dealing with kids and aging parents to worry about frivolous things like buying our luxury dream home.
Listen we are the largest generation and currently 2nd loudest after the tie between GenZ and the boomers.
It's our time to shine. Y'all had your shot and you decided to make pet rocks a thing so hey....
Listen we are the largest generation and currently 2nd loudest after the tie between GenZ and the boomers.
It's our time to shine. Y'all had your shot and you decided to make pet rocks a thing so hey....
It's always been y'all's time to shine with all your participation medals and all. Now excuse me while I go attend to my pet rock.
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