No more luxury for show. The young affluent spend their money completely differently

For years, a luxury apartment was primarily intended to show the position of the owner. What mattered was a large area, a recognizable address, a prestigious district, a representative building and a high standard of finishing. The more impressive a property was, the more clear a symbol of success it became.

However, younger generations of wealthy customers are starting to look at purchasing a flat or house differently. Location, area and quality are still important, but they are no longer the only criteria. How the property responds to the owner’s everyday needs is becoming increasingly important.

Premium properties not just for show

Young buyers want to continue to build wealth and choose properties that give them a sense of security. However, they do it less and less often according to the definition of prestige created by previous generations. Instead of thinking only about whether the apartment makes the right impression, they pay attention to the comfort of their own lives.

What matters is that the property fits the way you work, rest and build relationships. Privacy, aesthetics and a sense of independence are also important. Luxury does not disappear from the list of expectations, but its meaning changes.

Young people are expected to inherit properties worth trillions of dollars

The market shift coincides with a massive transfer of wealth between generations. In the next decade, representatives of Generation X and Millennials are expected to inherit real estate worth approximately USD 4.6 trillion worldwide.

More than half of this value is expected to fall on the American market. The scale of the transfer means that the decision-making behavior of younger affluent customers may become increasingly important for the entire market.

Not all young people buy in the same way

The new approach cannot be attributed to the entire young generation. The trend is most visible among premium segment customers who have high incomes, own capital or can benefit from family support.

Thanks to this, they do not have to focus only on price when purchasing. They can take greater account of comfort, privacy and the quality of everyday life. It is in this group that the traditional symbols of housing success begin to lose some of their current meaning.

Instead of more luxury goods, they choose apartments

The way we spend money on expenses that are not necessary for everyday functioning is also changing. More and more young affluent customers are directing their capital towards real estate instead of luxury goods.

This does not mean giving up high standards. Rather, the answer to the question of what this standard should be is changing. Large space, a prestigious location and an impressive interior are no longer enough. For young affluent buyers, it is increasingly important whether the property is suited to their own lifestyle.