The luxury homes market is set to benefit from a massive increase in wealth among millennials.
Coldwell Banker Global Luxury partnered with WealthEngine, which projects that millennials will inherit $68 trillion from predecessors in the coming decades as part of what’s been dubbed “The Great Wealth Transfer”.
There are currently around 618,000 millennial millionaires in the US, 93% of them worth between $1 million and $2.49 million, but this is set to surge due to the wealth transfer.
Among this cohort, 92% have purchased property, 80% of them opting for single-family homes; 77% are interested in home improvement to customize their space.
Wealthy millennials are also more interested in walkable neighborhoods rather than well-established luxury communities.
"Millennial millionaires are projected to become one of the richest and most influential generations in history. Real estate professionals should take notice as understanding this generation will be key to growing your business in decades to come," said Charlie Young, president and CEO of Coldwell Banker Real Estate LLC.
Where the wealth lives
The top states for millennial millionaires: California (44%), New York (14%), Florida (5%), Massachusetts (5%), Texas (5%), Washington (4%) and New Jersey (4%)
Eight of the top ten ZIP codes are concentrated in California's Silicon Valley, but the surprise #1 ZIP code? Traverse City, Michigan.
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