Engel & Völkers Consumer Trend Report Introduces The Next Luxury Home Seller

New data from the global luxury real estate brand identifies the four subsets of Gen X and Millennial homeowners that will drive the luxury real estate market in 2021 and 2022

NEW YORK, Sept. 27, 2021 /CNW/ - Engel & Völkers today released  The Next Luxury Home Seller, a consumer trend report based on data from EVI, Engel & Völkers' proprietary data center, that identifies the demographics and mindset of luxury home sellers in North America, defined as homeowners who are planning to sell a home for more than $1 million dollars in 2021 or 2022. Millennials and Gen Xers will represent 80 percent of these luxury home sellers, driven by a desire to be close to family and the freedom to pursue the lifestyles they want, in the places they want to call home.

"The past year has seen a significant surge in housing demand, resulting in record-low inventory levels with rising prices to match and a red hot market across North American real estate," said Anthony Hitt, president and CEO, Engel & Völkers Americas. "However, in every market situation there are homeowners willing to sell. The key is to identify which consumer segments fall within this group, and that is what we have done in this new trend report. At a time when the market is moving very quickly, we've gathered the intelligence that will allow real estate professionals to stay ahead of consumer trends and provide their own clients with an edge when buying or selling a home right now."

Engel & Völkers' EVI identified four distinct segments of Millennial and Gen X luxury home sellers that will drive luxury real estate sales throughout 2021 and 2022:

• The Wealthiest Millennials: More than 65 percent of Millennials with household income levels of $250K+ are planning to sell a home in 2021 or 2022, accounting for more than half of all home sellers within this wealth demographic. However, the Wealthiest Millennials are not fleeing the cities. In fact quite the opposite, as 60 percent reported the desire to purchase in an urban city. Instead of relocating from suburban or rural environments, this sentiment actually represents a shifting of priorities among the Wealthiest Millennials. Eighty-three percent already own properties in urban cities and an overwhelming 96 percent said that their parents currently live with them or believe their parents will move in with them in the future. This suggests that the Wealthiest Millennials are staying in urban environments and looking for spaces that can better accommodate current or future multigenerational living.
  
  
• Millennial Entrepreneurs: Millennials accounted for two-thirds of luxury home sellers who are also in the process of starting a business. No longer constrained by the limits of a physical office, remote work has allowed Millennial Entrepreneurs the flexibility to lead their companies from anywhere in the world. As a result, 29 percent of Millennial business leaders are relocating to new areas. While the majority of this cohort indicated a preference to live in an urban city, a significant 28 percent want to move to rural areas. This may be because Millennial Entrepreneurs are very family-oriented. Individuals within this segment are more likely than their peers to be married, living with a partner or have young children, and 20 percent are responsible for the care of at least one parent. Perhaps it is not surprising then, that 83 percent of Millennial Entrepreneur home sellers are committed to changing their lifestyle as a result of the pandemic in order to ensure they are never separated from their families again.
  
  
• Covid HENRYs: HENRY is an acronym for "High Earners, Not Rich Yet" and refers to young professionals who have an annual household income between $100,000-$250,000. Covid HENRYs are the members of the Millennial and Gen Z generations who emerged from the pandemic within this salary range, yet haven't amassed the same amount of wealth as older generations who have been in the workforce for a longer period of time. More than half of all luxury home sellers in 2021 and 2022 will be Covid HENRYs. A third of Covid HENRYs work remotely and nearly half of Covid HENRYs want to travel globally and have more unique experiences. Forty-one percent of Covid HENRY luxury home sellers also own a second home, indicating a desire to sell in order to more actively pursue travel and experiences. As a whole, Covid HENRYs are more evenly split when it comes to their desire to live in cities (49 percent) or suburbs (43 percent).
  
  
• Early Retired Gen Xers: More than one in five of all Early Retired Gen Xers plan to sell a home in 2021 or 2022, accounting for 27 percent of all luxury home sellers. Historically, those who reach retirement plan to downsize their homes. However, today's Early Retired Gen Xers are facing atypical situations. Thirty-nine percent have adult children, parents or other extended family living with them in their home. In fact, 58 percent of Early Retired Gen X luxury home sellers have had family move in since the pandemic, driving them to list their current homes in favor of larger homes with more bedrooms. More than half of Early Retired Gen X luxury home sellers are looking for their next home in rural areas.

Across the board, luxury home sellers in 2021 and 2022 are focused primarily on family and space. They are making housing decisions based on living with or near family members, and ensuring that they have enough space in order to do so comfortably. Sixty-seven percent of luxury home sellers who currently live in an urban market would like to remain in a city, indicating that urbanites are not, in fact, fleeing their cities. Rather, the pandemic has shifted priorities so that luxury home sellers are pursuing homes that allow them to live where, and with who, they want.

Engel & Völkers delved further into the data using MaX, its proprietary, data-driven technology platform that provides marketing intelligence, to identify the marketing platforms that will be most influential among luxury home sellers when they choose a real estate professional to represent them in the sale. Available for download in the full report, these results are broken down based on homeowners in the United States and Canada.

To download the full report, visit: https://www.evfranchise.com/the-next-luxury-home-seller.

Methodology
In partnership with Researchscape, Engel & Völkers Americas surveyed 1,700 respondents from across North America between June 22 to 23, 2021.

About Engel & Völkers
Engel & Völkers is a global luxury real estate brand. Founded in Hamburg, Germany in 1977, Engel & Völkers draws on its rich European history to deliver a fresh approach to luxury real estate in the Americas with a focus on creating a personalized client experience at every stage of the home buying or selling process for today's savvy homeowner. Engel & Völkers currently operates approximately 225 shop locations with 4,500 real estate advisors in the Americas, contributing to the brand's global network of over 13,500 real estate professionals in more than 34 countries, offering both private and institutional clients a professionally tailored range of luxury services, including real estate and yachting. Committed to exceptional service, Engel & Völkers supports its advisors with an array of premium quality business services; marketing programs and platforms; as well as access to its global network of real estate professionals, property listings and market data. Each brokerage is independently owned and operated. For more information, visit www.evrealestate.com.

SOURCE Engel & Völkers

Katelyn Castellano, Engel & Völkers Americas, [phone], [email protected]; Heidi Ruggier, Matte PR, 416-515-7667 Ext. 705, [email protected]