For the first time, a new generation has surpassed Baby Boomers as the biggest group of homebuyers – and their property preferences are distinct
The Millennial generation is breaking into the luxury property market in a major way. In the 2025 Sotheby’s International Realty agent survey, those born between 1981 and 1996, currently aged 29 to 44, were identified as the second fastest-growing group of homebuyers by some 32% of responding brokers. They number some 72.7 million in the U.S., and according to the National Association of Realtors (NAR), surpassed Baby Boomers in 2024 to become the largest group of homebuyers at 38%, an increase from 28% in 2023.
This trend has been growing for some time. The Washington Post reported in 2022 that Millennials’ impact on the housing market was being felt especially at the high end, and Fortune 500 homebuilding company Toll Brothers reported in May 2024 that 30% of its customers were first-time buyers-and that most of them were Millennials.
With some US$84 trillion expected to pass from the Silent Generation and Baby Boomers to younger generations, according to a January 2022 report from consulting firm Cerulli Associates, Millennials could inherit as much as US$27 trillion by 2045. So it’s crucial to know how to get their attention, where they look for guidance about real estate and what distinct tastes they share.
Whether a result of changing tax regimes, the cultural impact of popular media like the HBO TV series “The White Lotus” or rapidly climbing real estate prices, Sotheby’s International Realty agents from the shores of Lake Como in Italy to Washington, D.C., are navigating a new reality.
Attention Is Everything
One distinct aspect of Millennial buyers is, not surprisingly, their extensive use of social media in their property research. “Social media is everything,” says Daniel Heider, global real estate advisor, TTR Sotheby’s International Realty in Washington, D.C. “Almost everyone uses social media. TikTok has been the most downloaded app for some time. The smartphone is to our generation what the TV was to our parents and radio was to our grandparents. There’s nothing more important than attention and most of the attention today is on social media.”
Millennials are among the most active age groups on social media, with a June 2024 report by McKinsey & Company finding that Millennials and Gen Z buy products through social media four times more often than older generations do. More than one-third of survey respondents from these younger generations said they had made a purchase on social media in the prior three months.
At least 50% of Heider’s clients are Millennials. Buyers in this age range aren’t usually coming into the market for the first time, he says. “They are coming into more money and many are now going from their first house to their second.” In other cases, a property’s resident may be a Millennial but an older relative is signing on the dotted line. “It’s not necessarily a new thing for us to list a property for US$3 million, US$4 million or US$5 million and sell it for cash to the parents of somebody who is incoming for graduate school,” he says. “We have luxury buildings that are chock-full of students.” Though some of his buyers are entrepreneurs, most purchasing at the US$3 million-plus level are using an inheritance or money that had been placed in a trust by their parents.
“MILLENIALS WANT TURNKEY PROPERTIES, AND THEY’RE WILLING TO PAY FOR IT.” – Daniel Heider, global real estate advisor, TTR Sotheby’s International Realty
What are Millennial buyers looking for? “Turnkey properties,” says Heider. “They don’t want to deal with improvements. They want it ready, down to the landscaping, and they’re willing to pay for it.” That could include amenities, of which “wellness facilities, cold plunges, steam rooms, pickleball courts and infrared saunas” are popular. Millennials are not unique in prioritizing health-related assets: the Global Wellness Institute notes that the “wellness real estate” market— homes designed to support holistic health-may reach a value of US$887 billion by 2027.
“The White Lotus” Effect
The lifestyle in Italy may be slower than in power-driven Washington, D.C., but Diletta Giorgolo Spinola, head of residential, Italy Sotheby’s International Realty, says social media is just as crucial. A decade ago, she would make long videos to promote her properties, whereas now she makes an Instagram Reel of just a few seconds. “Now, we have Hollywood stars calling directly because of an Instagram Reel,” she says.
Giorgolo Spinola has also seen a surge in Millennial buyers. She says high-net-worth individuals are relocating because if they transfer their tax residence to Italy, they only have to pay a flat tax on income earned worldwide. The levy was introduced in 2017 to stimulate the sluggish economy and while it doubled in August 2024, it is still only €200.000 [US$218,000] a year. Now, even Mexican or South American buyers, who might typically have relocated to places like Miami, are bound for Italy. Meanwhile, in the U.K., the new government has resolved to end a tax benefit for non-domiciled residents-those whose principal home is not in the U.K. A “non-dom” currently only pays tax on income earned in the U.K., but under the new proposals would pay U.K. rates of tax on income earned anywhere in the world.
This grand villa on the hills above the city of Verbania, Italy, has wonderful views of Lake Maggiore.
The quality of life relative to the expense in Italy is more affordable when compared to places like Paris and London. says Giorgolo Spinola. Even luxury buyers appreciate that they can dine very well in Italy for just €30 [US$32.90] a head. While families are more likely to buy in cities like Milan and Rome, wealthy younger buyers, including “digital nomads” and those in venture capital or tech, are more likely to buy in places like Lake Como and Lake Maggiore.
New buyers want a mixture of the old and the contemporary in their new homes. “The dream is a 21st-century home in a historic building,” says Giorgolo Spinola. Many of Italy’s cities are basically open-air museums and strict regulations govern alterations to the exteriors of older buildings. However, buyers often renovate interiors to bring properties up to 21st-century energy consumption standards while also installing the latest amenities. “They want to be more self-sufficient,” Giorgolo Spinola explains. “They want to buy properties with features like an olive grove, a vineyard or orange or lemon trees.” Equally concerned about the health of the planet, they are also looking for sustainable homes.
While the media has always shaped perceptions of luxury, the increasing presence of streaming has changed the game. Hit shows and films such as “Bridgerton” and “Saltburn” are feeding a taste for Old World glamour, and Giorgolo Spinola saw “‘The White Lotus’ effect’ first-hand after the HBO comedy-drama set its 2022 season in Sicily, Italy. “Two months later, we had twice as many American and British buyers looking there,” she says. “It could be that, thanks to these shows, younger people understand that owning a piece of history is a status symbol. TV shows are definitely shaping their perceptions of what luxury is.”
Instagram Is the Mood Board
If people buying in Italy are being inspired by “The White Lotus,” those in Nashville, Tennessee, are more likely being drawn to the sort of high-end homes featured in entertainment television and on social media.
“I work with quite a few Millennials,” says Kelly Ladwig, global real estate advisor, Zeitlin Sotheby’s International Realty in Nashville, “and they have definitely been influenced by television shows and social media. Instagram has brought so many ideas and home features to so many people’s attention. Now, my clients might want a walk-in scullery, a breakfast nook or a keeping room.” As early as 2019, according to a report that year from Statista, some 65% of Millennials described social media as “extremely” or “somewhat” influential on their home decor decisions.
The Music City has seen luxury prices rocket in the 2000s, partly due to clients with funds from previous home sales in more expensive markets, says Ladwig. “A few years ago a luxury home in Nashville cost about US$1.5 million; now it’s more like US$4 million to US$5 million.”
Some of her Millennial clients work in tech and real estate, while others are athletes or influencers. “It’s exciting working with them,” says Ladwig. “They’re savvy, they’re smart and they are much more knowledgeable about what luxury is. They expect wine storage, bars and outdoor entertainment and for their home to be wired for sound and media. Many want golf simulators, music rooms and gyms. And we are now seeing builders put electric vehicle chargers in garages.”
Depending on their household’s makeup, some Millennials are seeking more square footage so their kids can entertain friends. Game rooms, movie rooms and swimming pools can make the house a place where they can congregate. Buyers without children might value more high-end finishes over size. Some of them use Instagram for inspiration, calling it “the new Pinterest,” and follow interior designers to find new ideas.
In the heart of Austin, Texas. this meticulously designed home offers a private, serene oasis in an enviable central location.
Entire Nashville neighborhoods now reflect the arrival of the Millennial generation, Ladwig says. “We see a lot of Millennials moving to places like Green Hills, along with the always-popular East Nashville and the Nations. We are also seeing people move to neighborhoods like the Grove in College Grove, which five years ago was unheard of.”
“Younger and younger buyers can aspire to luxury price points,” Ladwig says. “Four years ago, I had clients who were 24 or 25 looking at luxury homes but who were really concerned they would be the youngest ones in the neighborhood. Fast-forward four years and the neighborhood is full of people their own age.”
This trend is seen not just in Tennessee but across the country, as younger generations seek to grow their wealth through homeownership. “This notable rise is attributed to both younger Millennials stepping into homeownership for the first time and older Millennials transitioning to larger homes that suit their evolving needs,” notes Dr. Jessica Lautz, NAR deputy chief economist and vice president of research.
Article originally shared by Sotheby’s International Realty in the 2025 Informe Perspectivas del Lujo. Photos: Italy Sotheby’s International Realty, Kuper Sotheby’s International Realty
