Why are rich, health-conscious millennials taking over the luxury holiday home market in exotic locations?
Some buyers are looking at resort markets while others seek homes near quiet lakes, golf courses and ski resorts, or a location that offers business convenience or seasonal living
Young, wealthy and seeking luxury experiences: these are the people driving demand for high-end holiday homes in exotic locations, according to a new report. “The Allure of the Second Home: Why Affluent Buyers are Displaying Confidence in Resort Markets 2019”, produced by Luxury Portfolio International, is based on the findings of YouGov Affluent Perspective, a global consumer research study in 26 countries and five continents.
The report focuses on the top 10 per cent of income earners in those countries who are in the market to buy or sell a second or holiday home in the next three years. It found that some of these buyers are looking at resort markets like St. Bart’s, San Tropez, The Hamptons, Aspen, San Moritz, Bali, Mauritius and the like. Others are seeking holiday homes near quiet lakes, golf courses and ski resorts, or a location that offers business convenience or seasonal living.
One stand-out feature of this group is its impressively high assets and “astonishingly low age”, the report found. About half of the qualified consumer market is under the age of 40, yet their aspirations for purchase are in the millions of dollars.
Younger still are buyers from China, Singapore and developing markets such as Brazil, Mexico, Saudi Arabia and the United Arab Emirates. “As a rule, the average age for these regions is 35-41 years, and they show greater market interest than those from developed areas [such as North America and Europe], which tend to skew older,” explains Stephanie Anton, president of Luxury Portfolio International.
The next unique aspect of the buyer group is the level of experience they have with home ownership. For most, this is not their first time purchasing a second home – the average number of residences is three or more, and 14 per cent own at least five residences currently.
While affluent millennials are “taking over” the second home market, Anton notes the lack of experience of preceding generations, Gen X and Boomers. “These younger buyers are unique in this space, and [tend to seek] support from professional advisers who can help them craft the best deals and avoid costly missteps.”