TriBrand Prosperity 2020 Complete - Page 7



A
ffluent buyers and sellers today come from a wide
range of cultures, financial backgrounds, passions,
experiences and expertise. Putting their differences
aside for a moment, their similarities are astonishing.
They can be described as young, wealthy and full
of luxury experience. That experience brings them to buy a
similar range of brands from Chanel, Gucci, Burberry and Dior,
to Cartier watches and Calvin Klein jeans.
This study is global in nature, which means the markets of
purchase will be varied. Some of these buyers are looking at
resort markets like St. Bart’s, San Tropez, Cabo San Lucas,
The Hamptons, Aspen, San Moritz, Bali, Mauritius and the
like. Others are seeking vacation homes near quiet lakes, golf
courses and ski resorts, and others still may be looking for a
second home for business convenience or seasonal living.
BMW and Audi are the cars of choice and The Ritz Carlton,
Four Seasons and independent luxury hotels are some of their
favorite places to stay on vacation.
Who is considering buying? Selling?
When it comes to real estate, their similarities remain strong. In
this report we will answer the following questions specifically
about their behavior in the hot, high-end second home market:
Consumer profile: Buyers, age 40 and younger,
are taking over the luxury second home market,
but lack the experience of Gen X and Boomers
Luxury second home buyers and sellers have similar
demographic profiles in terms of age, geography, education
and professional status. As a result, their financial profiles are
similar, with the only noticeable difference being that sellers
have slightly higher asset levels.
1. Who is considering buying?
Who
is considering buying? Selling?
Selling?
Consumer
Buyers, age
40ofand
younger,
are taking over the luxury second
2. Whatprofile:
is the current
state
the
One stand-out feature of this group is its impressively high
andbut
second
market?
homeresort
market,
lack thehome
experience
of Genassets
X and
Boomerslow age. About half of the qualified
and astonishingly
Luxury second home buyers and sellers have similar
3. Why profiles
are they
buying?
demographic
in terms
of age, geography,
education and professional status. As a result, their
theywith
looking
4. What
financial
profilesare
are similar,
the only for?
noticeable
difference being that sellers have slightly higher
This report
focuses on affluent consumers (the top 10% and
asset
levels.
consumer market is under the age of 40, yet their aspirations
The next unique aspect of the buyer group is the level
for purchase are in the millions of dollars.
of experience they have with home ownership. For most,
above income earners in 26 countries) who are in the market
to buy or sell a second or vacation home in the next three
One stand-out feature of this group is its impressively
years. We define luxury buyers as those who, within the
high
assets
andexpect
astonishingly
age.
About half
of
next three
years,
to buy a low
luxury
non-primary
home
the
qualified
consumer
market
is
under
the
age
of
and sellers as those selling a non-primary home valued at40,
yet
their aspirations
for The
purchase
are in the
millions
$1,000,000
USD or more.
term “second
home”
included
of
dollars.
in this
report refers to a residence that is not primary and may
include the ownership of two or more homes.
Profile of Active Affluent Buyers
The next unique aspect of the buyer group is the level of
this is not their first time purchasing a second home—
experience they have with home ownership. For most, this is
the average number of residences is over three and 14%
not their first time purchasing a second home— the average
own at least five residences currently. This is not being
number of residences is over three and 14% own at least
driven
by the Millennial
group,
rather
bybyGen
five
residences
currently. This
is notbut
being
driven
the X and
Boomers.
Of
Gen
X
luxury
second
home
buyers,
17%X
Millennial group, but rather by Gen X and Boomers. Of Gen
have more
five
homes,
with than
19% five
of Boomers
luxury
secondthan
home
buyers,
17%along
have more
homes,
along
19%group.
of Boomers
in thistwo
buyer
group. As these
in thiswith
buyer
As these
generations
have
two
generations
have amassed
their also
wealth,
they have
also
amassed
their wealth,
they have
amassed
a variety
amassed
a
variety
of
personal
residences
to
call
home.
of personal residences to call home.
Total Affluent
Luxury Second
Home Buyer
Luxury Second
Home Seller
48.0
2%
29%
69%
81%
60%
43.5
3%
45%
52%
83%
71%
43.7
0%
49%
51%
89%
77%
41%
4%
28%
8%
Demographics
Average age
Gen Z (18–22)
Millennials (23–40)
Gen X and older (41+)
Married
Have children under 18
Current Primary Home Location
North America
PROSPERITY 2020
Latin America
7
27%
6%

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