2020 was a turbulent year for many industries, luxury housing included. The previous year’s events drastically transformed consumer preferences, which have now dictated the trends of 2021. But one question may be lingering in the minds of sellers today: do luxury homes still sell in the real estate market?
The answer is yes. Earlier in February, Forbes reported that luxury housing is seeing a surge this year. This is largely due to the reality that many high-income individuals are still working from home because of COVID-19.
As more vaccinations occur and the United States slowly begins to open up, rates for mortgages are rising. They are likely to remain relatively low for the time being, which encourages those looking to purchase high-priced homes.
Housing Trends that Have Emerged
Sellers and developers should pay particular attention to the new preferences of homebuyers in the luxury market. Going forward from the pandemic, these are features that affluent buyers will be looking for in a potential home.
At-Home Event Spaces
In 2021, homeowners will want to resume social activities but will continue to prefer being in their homes’ safety. This makes rentable event spaces a sought-after feature for luxury condominiums. Developers will now consider private function rooms and dining spaces a vital part of their amenities.
Rented-out private spaces give residents more control over foot traffic as opposed to hosting an event at a restaurant. This provides an additional layer of safety for both homeowners and their visitors when celebrating an occasion.
Larger Indoor and Outdoor Areas
COVID-19 restrictions have emphasized the importance of having a versatile living space. Homebuyers want more space that they can easily customize and rearrange as they see fit. Spacious interiors are not the only preference home buyers have.
The pandemic saw higher demand in outdoor spaces, and luxury homeowners want it bigger. This means that they should accommodate a variety of activities, from lounge seating to fire pits and theaters.
Private homes and luxury condos alike should now have these amenities in which adults, their children, and pets have ample room to unwind. Facilities should also be functional year-round, meaning appropriate equipment should be installed for all four seasons in the year.
With so much time being spent in the home, whether it’s for work or play, the necessity of advanced technologies has arisen. Mansion Global said that among the smart innovations luxury homes are adapting in 2021, the top features are high-quality streaming equipment, high-speed internet connections, and smart sanitizing solutions.
As the world remains dependent on conference calls to connect, homes should have better audio tools. With many people in the home using the internet all at once, wired connections will be wiser for faster internet speed.
Homebuyers will also look for touchless technologies, especially automatic sanitizing solutions for the home. Sensor-activated fixtures will also be important for entry and exit points and wash areas.
Millennials Are Shaping the Market
With the first wave of millennials (those born from 1981 to 1996) hitting their 30s, they also began to step into luxury housing.
High-earning millennials benefited from the pandemic, thanks to the drop in interest rates that have allowed them to afford more expensive homes. The rise in remote work arrangements has also opened up opportunities for millennial families to find homes in places other than locations near their workplace.
As more millennials gain the financial capacity to purchase luxury homes, they are also transforming the market. Their generation is known to be more conscious about the environment than others. This carries over to their housing decisions. Millennials are drawn to homes that are sustainably powered and have energy-saving capabilities.
Additionally, millennials are concerned about their overall quality of life in choosing a home. It is not simply about practicality or affordability. They want a good range of offerings, such as restaurants and leisure centers and parks, that are within reach from their homes.
Cleanliness and Safety Remain Huge
To add to its many lasting effects, the pandemic also changed how homeowners perceive health and wellness. More emphasis on sanitation protocols was expected when the virus struck, but it has carried over into everyone’s post-pandemic lifestyle.
Homebuyers want to know how stringent and effective a residential building’s cleaning and air filtration systems are. They want to be assured of their safety in their homes. Managements in luxury residences should be investing in improved ventilation systems and cleaning equipment, such as UV lighting and smart cleaning tech.
As luxury housing moves towards recovery, health remains the utmost priority for developers, sellers, and homeowners.