Why rich millennials are snubbing prestigious neighbourhoods for the ease of walking to work
The rich have traditionally chosen the seclusion and security of tucked-away enclaves, but today’s millennial elites are giving up floorspace and luxury for grungy downtown real estate where everything is within walking distance
For rich millennials, the living is easy when everything they need is within walking distance.
While walkability isn't a new concept in luxury real-estate, millennial millionaires are redefining its importance. According to a new report by Coldwell Banker, they're likely to choose a non-traditional luxury neighbourhood over a traditional luxury neighbourhood if it means they can walk to the local cafe.
The Coldwell Banker Global Luxury programme worked with wealth intelligence data and research firm WealthEngine to analyse the lifestyles of millennial millionaires, from wealth creation and property investments to spending trends. It defined millennial millionaires as those aged 23 to 37 with a net worth of more than US$1 million.
“They want to live near gathering spaces,” Karen Yang of Coldwell Banker Residential Brokerage in Los Altos in California said in the report. “They want to live near throwback downtowns, or districts that grew organically – and they are willing to give up square footage and amenities to be able to live in those kinds of locations.”
Being able to walk to work is the winning factor
Danny Hertzberg, Coldwell Banker Global luxury ambassador and member of The Jills-Zeder Group from Coldwell Banker Residential Real Estate in Florida, sees this happening in Miami.
“Walkability is a really big thing,” he said in the report. “They want to be able to walk to neighbourhood coffee shops and bakeries … Health and wellness is a priority for them, so they like to be close to fitness facilities and yoga studios.”
He continued: “Location has always been a factor in real estate, but what's changed is the definition of what is a good location. It used to be that the prestigious neighbourhoods were gated and secluded, often outside town. Millennial buyers want to be close to the action.”