Luxury home buyers expect the best when it comes to the quality and design of their new home. And, with another year where there are more luxury home buyers than there are sellers, many will turn to building a new home. As a homebuilder, understanding the demographics of luxury buyers and what they value in their new home can set you apart from your competition.
Concentrating on who your high-end clients are, and what they appreciate when building a new home is essential to selling luxury homes.
Understanding Luxury Homebuyers
In the past, luxury homebuyers were thought to be older individuals, who had more time to grow their wealth. Now, millennials make up almost 60% of buyers purchasing a luxury home.
The demographics for luxury home buyers are changing, but so are the desired features. Priorities have changed since COVID 19 and the shift to spending more time at home. Requests for indoor/outdoor living, home offices, and vacation-like amenities are usually high on the list.
In a study by Luxury Portfolio International, there are 5 items on the top of a luxury home buyers list.
1. Investment quality
In 2023, the top quality when buying a luxury property is the investment potential. Buyers are often looking for a home that meets their lifestyle and design preferences, but also offers long-term investment potential. They want to ensure their home will retain its value, and appreciate in value, providing them a return on investment if they decide to sell in the future.
2. Natural beauty
Convenient locations are still a priority, but while spending more time at home, beautiful and private natural surroundings have also become a valuable asset. Happiness, relaxation, and wellness are important to luxury homebuyers, and natural surroundings can have a positive effect on mental and physical health.
3. Family oriented
In the study, when asked what they do to relax, 86% named activities that happen at home.
High value is placed on spending more time with family outdoors at home or watching tv, movies, and sports. Reading and cooking were also high on the list. Showing how you can provide a space for these activities will help luxury buyers envision themselves in the homes you build. School rankings are also valued for families buying luxury properties.
4. Sustainability & energy efficiency
Almost 90% of buyers surveyed said sustainability is important in the home they buy and 58% will pay more for these features. Energy efficiency is also important. Features that reduce the environmental impact the house has should be a focus when building and marketing to luxury buyers. These items might include:
- Sustainable building materials
- Smart home systems
- Water efficiency solutions
- Solar panels
- Energy efficient appliances and fixtures
5. Wellness
Health and wellness are also at the top of many affluent homebuyers list of must-haves. Providing a space away from the real world to relax, recharge, and refuel are important. Some requested at-home amenities are:
- A tranquil master suite
- Outdoor space to reflect
- Mixed-use spaces
- Natural light
- A Gym or other activity space like a dance studio
How to Target Luxury Homebuyers
Understanding that your affluent clientele wants is one step, but finding and attracting them is another. Targeting luxury homebuyers requires a strategic approach that takes into account their unique needs and preferences.
Create an Exceptional Experience
Luxury buyers want to build a home that is the best-of-the-best, and they also expect the buying and building experience to stand up to this test. This goes from creating a strong and recognized brand, to hiring the most talented sales agents, contractors and other staff. This clientele expects sophisticated marketing, prompt communication, and high-levels of attentiveness to feel valued as a buyer.
Partner With Luxury Real Estate Agents
Building relationships with experienced luxury real estate agents who can help market your properties to affluent buyers. These agents can provide valuable insights into the preferences and needs of luxury buyers and help you, as a home builder, create properties that meet these needs.