The luxury real estate market flourished while other industries suffered in 2020 and early 2021. Affluent buyers are finding new ways to upgrade their residences for a bigger and more developed outdoor living space, lower population density, and more technologically advanced amenities.
The shift in the market is informed by the need for more privacy, security, safety, and convenience. The changing work environment and health trends also inform these changes in real estate. Below are three trends to watch out for:
Millennials are the largest group of homebuyers in the U.S. and their preference for sustainable homes has driven green innovations in different sectors.
Green roofs and green appliances are the new faces of modern luxury homes. Their preferences are shaping the luxury real estate market for the better and how modern homes are built.
Even as luxury homes adopt touchless high-tech features, the developers bolster sustainability in several aspects of the buildings.
Features, such as solar panels and energy-efficient geothermal systems, are more attractive in modern luxury homes. Additions, such as a Tesla charger, further make the homes attractive to luxury buyers.
Suburban Over City Luxury Homes
Luxury home buyers today consider their overall lifestyle instead of the location of their workplace. Homeowners need areas where they can walk and experience nature.
The cities are crowded. In 2020, the increasing demand for single-family homes drove up home prices. This saw a shift where luxury home buyers fled the city for the suburban areas. The mass exodus from cities made suburban areas attractive.
Although some people came back to the city, the number of those who came back is still low. Before 2020, the luxury real estate market suffered back-to-back tax changes that saw the price of homes go up.
Before the market could recover, the 2020 pandemic hit, and the market went back in shock.
Previous city dwellers now need more privacy and are also looking for discounts in single-family homes. In the meantime, the city homes are converting to offices.
The surge in the number of people working remotely has also contributed to the shift from cities to townhouses. Anyone working remotely prefers a city with the quietness of suburbs to the hassle of the city.
When living in a suburb, one can convert a room into an office and enjoy areas that are closer to nature. Some of these homes even have dedicated home offices, making them ideal for remote workers.
These shifts are in Toronto real estate as they are in other big cities around the world. Between July 2019 and July 2020, for instance, at least 87,444 young people left Toronto, Vancouver, and Montreal, according to a report by Statistics Canada.
Shift in Amenities
Today, luxury home buyers prefer technology and wellness features. Millennials are looking at smart home features as standard, and developers have to ensure smart lights, smart access systems, smart security systems, and smart appliances are installed.
These smart features bring so much convenience and make homes more efficient. Although the connected home is still a few years away from actualization, homes still install smart devices.
Today, buyers are more focused on air filtration and other wellness systems and features. Luxury buyers need more advanced HVAC systems complete with UV light purification systems. Large outdoor spaces, on-site spas, and gyms, and other wellness facilities are now more important in luxury homes.
Previously, these facilities were part of luxury homes, but buyers could do without them. There is also an increase in wellness technology, especially systems that help people sleep better.
In-building health care systems are only becoming more popular. In multifamily luxury settings, residents choose to have separate rooms for cardio, stretching, and other forms of exercise. In the future, there will be a shift from large gyms to more specialized spaces.
With the love for outdoor spaces, people now prefer firepits and heat lamps, and pergolas among other outdoor features. Large pools and sunrooms are now more important than ever as more people spend their time at home.
The real estate market is poised for more growth in 2021 and beyond. Property developers in Toronto and other major cities are positioning their new and existing developments to meet the evolving needs of prospective affluent buyers.
Some developers have re-developed their plans to include home offices, more advanced air filtration systems, touchless technology, and expanded outdoor living spaces.