Millennials upset luxury

Several times in the previous columns we have talked about the '' Millennials '' phenomenon. For those who have not followed them, the Millennials are simply the young people of today, who with new fashions and habits are upsetting all sectors. Including the real estate market. To the point that, in many countries, such as Spain or Germany, numerous interventions have been applied to allow young investors to achieve their own housing independence more easily.

Well, if when we talk about '' Generation Z '' we only think of small changes it is making to today's society, we are wrong. In fact, a key sector of real estate, luxury, has been and continues to be in progress precisely because of this new slice of the population. More and more decisive in social but also economic evolutionary processes. In our case, in today's column, we will try to analyze the US situation, relating to luxury real estate.
So if you're ready, we can get started!

We assume that even luxury has undergone important changes. First of all, in terms of prices. The luxury segment in fact, in some countries, has experienced real collapses in economic terms. In others, a decrease in the availability of properties on the market. Obvious effect, to avoid an extreme devaluation of the brick. Therefore, if the pandemic emergency has also hit a pillar such as luxury, you will not be surprised if the change was largely driven by the Millennials. Let's see the data.
If before the Millennials preferred the signing of leases, now, in America, they represent 38% of buyers of luxury properties. They are literally breaking up an ancestral idea. The one that young people but also older adults prefer to buy houses at low prices first and then enrich and modify them only once they have achieved strong economic stability.
But let's see together which are the most popular places for young investors. Sunny California first, followed by Florida.

Two areas known for their natural beauty, but also for the presence of many neighborhoods and cities where the cost of living is very high. But apparently, this does not appear to be a problem for young people. Furthermore, scholars have emphasized an additional merit to the Millennials. That of being the most educated generation, thanks to the present economic well-being (despite the crisis). The possibility of free education but also the American mindset of investing, from an early age, in the future colleges of their children, has led to the birth of a generation aware of its abilities. And above all eager to be independent as soon as possible.

We also remind you that the Millennials are about 72 million Americans, one of the largest population groups, who are preparing to dive into the world of work and bargaining. How will the situation evolve? While waiting, we leave you with this positive message given to us by the young guys, who are learning to grow just by taking small big steps, in luxury real estate! While waiting to find out more, keep following us on our portals!

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