Lifestyle aspirations driving buyer interest in luxury homeownership: ILHM

January 25, 2024

Experiences are at the core of what luxury homebuyers are looking for in new potential buys. Image credit: ILHM

At a recent virtual event, the Institute for Luxury Home Marketing (ILHM) broke down a few factors it says are pushing affluent individuals to make home purchases.

As revealed in the latest episode of the “Estate of Mind: The Art of Selling Luxury Real Estate” podcast, buyers are interested in the experiences that a home can offer as much as they are in the property itself. Real estate veterans Tami Simms and Jack Miller of ILHM share insights about how to close deals with luxury clientele.

Embracing the experiential
During the event, the experiential perks of owning a home are highlighted, pointed to as major drivers of luxury real estate transactions today.

Mr. Miller shares that homeowners are finding benefits in the perks that surround high-end properties, such as the neighborhood and community. These external elements are proving to be more important than ever, with many potential buyers more heavily considering these items when debating whether or not to close.

The ILHM reveals the motivations behind luxury home purchases

Mr. Miller compares the expectations of luxury consumers to those of guests attending a dinner at an upscale, fine-dining establishment. The cuisine always matters, however, the atmosphere should not be lost to the menu.

“It’s about not only the journey but how you end up as well,” says Ms. Simms, during the podcast.

“It also comes back to our talk on vacation spots,” she says. “It’s not just about the ‘where’ but also the ‘why,’ like what’s it going to feel like when we get there and how we get there in the first place.”

Travelers can enjoy views of Japan's city within interiors that fuse European and Asian influences. Image credit: Janu The value of adjacent experiences, rather than just the home, is dominating the choices that luxury homebuyers are making. Image credit: Janu

He states that the value of adjacent experiences, rather than just the home, is dominating the choices that luxury homebuyers are making.

Ms. Simms chimes in, asserting that the lifestyle that a property can provide to residents will likely be what draws them in first and foremost.

Brokerages are thus adjusting how homes are marketed, listing them by what kind of communal amenities and living styles their listings offer, versus solely by the expected number of bedrooms and bathrooms.

The houses mark Bentley Home’s entrance into the Middle East. Image credit: Luxury Living Group Homeowners are finding benefits in the perks that surround high-end properties, such as the neighborhood and community. Image credit: Luxury Living Group

Terms such as “city views,” “urban living,” “foodies,” and “celebrity-spotting” are being used to describe the feel of luxury units.

This helps those new to the area get a sense of what respective cities have to offer while also appealing to locals looking for a setup that supports the kind of life they want for themselves.

Following trends
As the market recovers and adapts from the onset of high interest rates, consumers have shifted their expectations for their new homes.

Experiences are at the forefront of nearly every aspect of the luxury world at the moment. From automotive (see story) to jewelry and watches (see story), homebuying is proving to be no different.

According to the firm’s findings, 81 percent of those surveyed would rather splurge on vacations or a second home than leave more behind for their children to inherit down the line. Image credit: Pacaso Consumers are constantly shifting their expectations for new primary and secondary homes. Image credit: Pacaso

Recent findings have shown that the demand for move-in ready properties with zero renovation projects is staying strong (see story).

Smart home tech is on the rise as well, raising the experiential bar that much higher (see story).

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