Housing was one of the few economic bright spots in 2020, and the luxury market was even brighter than real estate as a whole. Even better: This trend doesn’t look like it’s going away soon.
There are plenty of reasons for the success in the luxury sector. Let’s take a look at a few factors that led to a surge in demand last year — and some that may continue it into this year.
- Health and wellness amenities are in high demand. Amenities like home gyms, chef’s kitchens, swimming pools, tennis courts and other luxe recreational features are in demand, especially as a hygienic alternative to public entertainment opportunities.
- Families are in need of more space. Many households saw additional family members move in during 2020, and remote work and school-at-home arrangements exploded. These conditions call for more space than many lower-priced homes have to offer.
- Mortgage rates are at record lows. Lower interest rates allow homebuyers to consider larger, more luxurious and higher-priced properties than they otherwise could afford. Rates are expected to remain near record lows for the near future.
- The suburbs and rural areas are booming. The pandemic caused an exodus from large, cramped cities. Many households gravitated toward the open spaces of more spread-out communities and suburbs.
- Millennials are buying into luxury. In a reversal of the exodus mentioned above, millennials have caused a boom in the luxury condo market. They often prefer more compact housing with access to communal amenities and social opportunities.
The luxury housing market weathered 2020’s storms for these reasons and more — and it looks like it will remain strong in 2021.
Get in touch if you have questions or need help finding a luxe property that meets your needs.