BAM Key Details:

  • Women make up 54% of luxury homeowners under the age of 35, according to a report from Luxury Portfolio International. 
  • The study also suggests that the younger generation is purchasing luxury properties earlier in their lives when compared to previous generations.

Women are once again setting the trend in homeownership—this time, in the luxury market.

In February, a LendingTree analysis of U.S. Census data showed that single women are more likely to own a home than single men in 48 of 50 states. And now, a new report from Luxury Portfolio International reveals that women make up 54% of luxury homeowners under the age of 35.

Luxury Homeowners

Source: Luxury Portfolio International

A Significant Shift in Younger Luxury Homeowners

Luxury Portfolio International compiled data from surveys in 24 countries, including the United States, United Kingdom, key parts of Western and Southern Europe, Middle East and Asia Pacific.

The study found that, although men make up 59% of luxury homeowners aged 35-64, there has been a significant shift in the demographics of younger owners. Women now account for 54% of homeowners under the age of 35.

Affluent young women are on trajectory to level the playing field, wielding purchasing power, wealth accumulation, education and corporate positions to make serious real estate decisions earlier in their life. This has major ramifications for brands and retailers targeting homeowners and the luxury property sector.

Mickey Alam Khan

New York-based President, Luxury Portfolio

The female presence in the luxury real estate market points to women achieving financial success on their own, with an equal percentage of men and women (48%) reporting they hold executive leadership positions. 

In addition, the study suggests that younger owners (male and female) are purchasing luxury homes earlier in their careers than previous generations. The full report points to five main reasons younger generations are getting ahead in the luxury market:

  • Early Wealth Accumulation: Those under the aged of 35 are accumulating wealth earlier in their careers. 
  • Inheritance and Family Support: Financial assistance from their families allows some owners to purchase luxury properties sooner than if they had bought them on their own.
  • Investment Mindset: Younger generations value real estate as an investment.
  • Low Interest Rates: Historically low interest rates prior to 2023 made it more affordable to enter the luxury real estate market.
  • Remote Work: Remote work opportunities give professionals the ability to live in more affordable areas while earning higher salaries.

Additional Takeaways about Luxury Homeowners

In addition to women being the majority of owners under the age of 35, the study from Luxury Portfolio International found additional shifts among the younger luxury homeowners, when compared to those aged 35-64. 

  • Education: 52% of younger owners hold a master’s degree or higher, compared to 62% for those older than 35.
  • Corporate ladder: Younger luxury homeowners hold junior (23%) and executive (46%) positions, while older luxury owners hold senior (24%) and executive (51%) roles. 
  • Relationship status: 18% of younger luxury homeowners are single, compared to 6% of those aged 35-64. 
  • Family values: 68% of both groups want to ensure generational wealth, however, more younger owners prioritize family financial security (92%) and providing ongoing financial security for their family (65%) vs. older owners, at 87% and 56%, respectively.

What Luxury Homeowners Want in a Real Estate Agent

When it comes to real estate agents, all luxury homebuyers agree—they want to work with a professional who has access to exclusive services, demonstrates attention to detail, has a digital marketing strategy, and showcases knowledge of the local market. 

Younger luxury homeowners pay more attention to the brokerage’s brand affiliation (38%) than their older counterparts (28%) and their agent’s ability to use high-tech tools (32% vs. 19%).

All consumers are making one of the most significant financial decisions of their lives when buying or selling a home, so it doesn’t come as a surprise that they have high expectations of their agent. By understanding these desires, you can better cater to the unique needs of luxury homeowners and provide them with exceptional service.