Deep-pocketed Gen Y buyers turning to high-end real estate

Wealthiest 10 percent to account for one fifth of U.S. home purchases over the next three years

New York /
Jul.July 19, 2013 01:30 PM

A growing group of wealthy young buyers is making inroads in the high-end real estate world, acquiring properties at prices and speeds brokers say they’ve never seen before, the Wall Street Journal reported.

Low interest rates and lower real estate prices have joined forces to make it easier than ever for people in their 20s and 30s — referred to as “Generation Y” or “millenials” by demographers —  to buy investment properties. Millenials now constitute the second-largest group of recent home buyers, making up 28 percent of the pool, according to a new report by the National Association of Realtors.

“In the last two months, half the folks I sold homes to were young entrepreneurial types — and they were all buying homes for over a million dollars,” Michael Rankin, a managing partner at TTR Sotheby’s International Realty in Washington, D.C., told the Journal. “A few years ago, that kind of buyer was invisible.”

And while home ownership rates have fallen among the middle-aged, the rate has grown for buyers aged 25 to 34, according to U.S. Census Bureau data cited by the Journal. Brokers are responding to the shift by advertising through new channels. For example, at 250 Bowery on the Lower East Side, the marketing team is using social media to promote the condominium building.

Brokers and analysts say that the wealthiest 10 percent of millennials will have a profound effect on the future real estate market, with their spending accounting for one fifth of all dollars spent on primary-home purchases over the next three years, according to the 2013 Survey of Affluence and Wealth in America cited by the Journal. [WSJ]Julie Strickland


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Property buyers from the Middle East made up 16 percent of all sales to international investors (Getty)
Middle East investors returning to UK property market
Middle East investors returning to UK property market
Victor Oladipo joined the Miami Heat earlier this year. (Getty)
Miami Heat’s Victor Oladipo buys non-waterfront Miami Beach spec home for $8M
Miami Heat’s Victor Oladipo buys non-waterfront Miami Beach spec home for $8M
(iStock)
Canada’s surging housing market be peaking
Canada’s surging housing market be peaking
Abraham Edgardo Ortega is one of nine people charged in the laundering scheme. (Getty, Department of Justice)
Former Venezuelan oil exec sentenced in $1B money laundering scheme
Former Venezuelan oil exec sentenced in $1B money laundering scheme
Mark Zuckerberg and Priscilla Chan (Getty, iStock)
Mark Zuckerberg nearly doubles Hawaii real estate holdings
Mark Zuckerberg nearly doubles Hawaii real estate holdings
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...