Published annually by the Coldwell Banker Global Luxury® program, The 2024 luxury real estate Trend Report compiles insights from a Censuswide survey of high-net-worth consumers, complemented by data from the Institute for Luxury Home Marketing, Wealth-X, and other industry experts. This comprehensive source unveils the current and future trends steering the luxury home market.
Luxury real estate is a rapidly evolving landscape which requires expertise in a variety of areas. Global Luxury experts study consumer spending habits, lifestyle trends, financial drivers, global wealth movements, and local market influences.
Key luxury real estate highlights from The Trend Report 2024 include:
- Shifting Out of Neutral: The luxury housing market experienced a boost in late 2023, witnessing annual increases in sales for both luxury single-family and attached properties. Does this indicate a trajectory of growth for 2024?
- Have-It-All Properties: Modern luxury consumers aspire to have it all. Which property types are poised to meet the diverse preferences of selective buyers in the upcoming year?
- The AI Revolution: Exploring the potential implications of Generative AI for the future of real estate.
- America, the Investment Haven: Despite contrary news headlines, the latest statistics from Wealth-X (an Altrata Company) and U.K.-based Barton Consulting suggest that affluent international buyers continue to show interest in American real estate. Will this trend persist in 2024?
- The HENRY Factor: Examining the actions of HENRYs (High Earners Not Rich Yet) – a demographic to closely monitor in 2024.
- Smart Homes 2.0: With consumer lifestyles evolving and the rise of generative AI, what does the future hold for the smart home market over the next few years?
CLICK HERE to view The Trend Report.
Executive Summary:
- Shifting out of neutral. The luxury housing market revved up at the end of 2023 as sales increased by 4.2% for single-family properties and 14.2% for attached properties during the last quarter of 2023 compared to the same quarter in 2022. Trend indicators show a market on track for growth in 2024.
- Have-it-all properties. A recent Censuswide/ Coldwell Banker Global Luxury survey found that luxury consumers are most likely to say that location, price, size, home condition and design are most important to them. In other words, they want it all. Four property types – “of the moment” luxury homes, vertical country clubs, branded residences and golf-lifestyle hybrid communities – will likely check all the boxes for selective buyers this year.
- The AI revolution. The explosion of generative AI over the last year has potential implications for the future of real estate. The technology could lead to better transaction efficiencies and more personalized search experiences, but some risks and limitations need to be considered.
- The HENRY factor. HENRYs – “High Earners Not Rich Yet” – are the demographic to watch in 2024. While the overall wealth of U.S. individuals with a $5+ million in net worth dipped slightly after stock market declines, HENRYs saw their population soar to nearly 9 million at a growth rate of nearly 13%. Wealth-X and U.K.-based Barton Consulting forecast that this growth trajectory will continue through 2024.
- America, the investment haven. Contrary to the news headlines, affluent international buyers have not cooled on American real estate. The number of international buyers purchasing real estate in the top 5% of the market saw an estimated growth of 25% in 2023 compared to 2022, per Wealth-X and Barton Consulting. Expect this to continue in 2024.
- Smart homes 2.0. With consumer lifestyles shifting and advancements in AI, the smart home market appears to be on the verge of moving from a market of early adopters to mass adopters.
