{"id":4831,"date":"2025-02-22T16:54:36","date_gmt":"2025-02-23T00:54:36","guid":{"rendered":"https:\/\/livsothebysrealtyca.blog\/?p=4831"},"modified":"2025-06-18T09:57:28","modified_gmt":"2025-06-18T16:57:28","slug":"generational-shifts","status":"publish","type":"post","link":"https:\/\/livsothebysrealtyca.blog\/spu\/generational-shifts\/","title":{"rendered":"Cambios generacionales"},"content":{"rendered":"\r\n\t\t
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The transfer of an estimated US$84T in wealth between older and younger generations is driving change in the market for high-end homes<\/h2>\n\t<\/div>\r\n<\/div>\r\n\r\n\r\n\r\n\r\n
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The global real estate market has seen some dramatic shifts over the past five years, driven by fluctuating interest rates and the work-from-home revolution<\/a> sparked by the global COVID-19 pandemic. The luxury property sector is somewhat insulated from things like interest rate changes, according to market experts including J.P. Morgan Private Bank. But a factor that could impact it is a massive intergenerational transfer of wealth on the horizon.<\/p>\n

\"\"According to a January 2022 report from consulting firm Cerulli Associates, by 2045 as much as US$84 trillion will have flowed from the Silent Generation and Baby Boomers\u2014those born between 1928 and 1964\u2014into the bank accounts of their children and grandchildren. In response, the luxury market is changing to reflect the tastes and preferences of younger generations.<\/p>\n

Many young buyers are using an inheritance to purchase their first home or to trade up to their second, according to an April 2024 report from the National Association of Realtors (NAR). Wealthy parents are also buying homes for their adult children, in some cases with money placed in a trust, according to a November 2024 report by Business Insider.<\/p>\n

At the same time, women are coming into their own as independent homebuyers. They outnumbered single men by 12%, according to a November 2024 NAR report. These major trends are not only affecting the post-pandemic luxury market\u2014they may help to define it for years to come.<\/p>\n\t<\/div>\r\n<\/div>\r\n\r\n\r\n\r\n\r\n

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The Rise of Generation X<\/h3>\n

\"\"According to the 2025 Sotheby\u2019s International Realty<\/a> agent survey, the fastest-growing group of luxury-homebuyers is Generation X\u2014those born between 1965 and 1980. They are expected to inherit the most money from their parents, an estimated US$30 trillion, according to data from consulting firm Cerulli Associates. Making up 24% of homebuyers in 2024, according to the NAR report, Generation X is also among the highest earners, with a median income of US$126,900 in 2023, which makes them able to afford larger homes, at a median size of 1,940 square feet.<\/p>\n

\u201cMany Gen Xers are now well into successful careers, and the work-from-home revolution is partly shaping their needs,\u201d says Cathy Taub, global real estate advisor, Sotheby\u2019s International Realty – East Side Manhattan Brokerage. \u201cIn New York City, Gen Xers want layouts with office space separate from the living areas and bedrooms,\u201d Taub says. \u201cThey prefer to have square footage allocated to kitchens and living areas as opposed to bedrooms\u2014though they all seem to want a five-fixture bathroom. Outdoor space\u2014whether a terrace, balcony or communal building roof space\u2014is often a top priority, as well as amenity spaces for fitness and conference space.\u201d<\/p>\n

As the next to reach retirement age, Generation X is also starting to look at homes that will accommodate them in later life, according to an April 2024 report from The New York Times.<\/p>\n

\"Overlooking

Overlooking the Gulf of Mexico from \u2028a sugar-sand beach, this custom six-bedroom home combines sophistication, comfort, and breathtaking vistas from nearly every room.<\/p><\/div>\n

Drawn by larger square footage and outdoor space, some buyers are seeking homes in the Garden State. As Dennis McCormack, broker and managing partner, Prominent Properties Sotheby\u2019s International Realty, which has three locations in northern New Jersey, states, \u201cJust 17 miles from Midtown Manhattan, the suburbs of New Jersey can provide a luxurious sanctuary for city workers.\u201d<\/p>\n

His clients haven\u2019t slowed their purchasing due to high interest rates, as they might have in the past, he says, since nearly all of them are buying in cash. About half his buyers work in finance, while many others are medical professionals.<\/p>\n

\u201cEverybody wants new builds,\u201d he says. \u201cThey don\u2019t want to renovate. That means there are some very good deals for people who don\u2019t mind rolling up their sleeves and renovating a bathroom and a kitchen. But my clients\u2019 time is valuable and they would rather pay a premium for a new property.\u201d<\/p>\n

One major concern for McCormack\u2019s Generation X buyers is that they get the smartest home they can find on the market. \u201cThe more automated it is, the more it can do for you, the better,\u201d he says.<\/p>\n\t<\/div>\r\n<\/div>\r\n\r\n\r\n\r\n\r\n

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Parents Buying for Children<\/h3>\n

The current luxury market is a family affair. According to a September 2024 report by U.K. financial services firm Legal & General, gifts from family members to buy property are at a record high, with 42% of properties bought in the U.K. in 2024 by people under 55 being financed with help from parents. By 2026, the firm estimates the annual amount given will reach \u00a311.3 billion [US$14.8 billion]. This trend can be seen in other markets, too, including New York and Spain.<\/p>\n

\n“DEVELOPERS HAVE COME TO UNDERSTAND THAT IT\u2019S ABOUT LIFESTYLE\u2014NOT JUST THE PROPERTY ITSELF BUT EVERYTHING AROUND IT.”<\/strong> –Paloma P\u00e9rez Bravo, CEO, VIVA Sotheby\u2019s International Realty<\/span>\n<\/p><\/blockquote>\n

\u201cIn the past, Spain was never considered a luxury market compared with France, England or Italy, but in the past two years there has been an amazing change,\u201d says Paloma P\u00e9rez Bravo, CEO, VIVA Sotheby\u2019s International Realty. \u201cDevelopers and everybody else have come to understand that it\u2019s about lifestyle\u2014not just the property itself but everything around it.\u201d<\/p>\n

A quarter of new developments in P\u00e9rez Bravo\u2019s market, she points out, are focused on luxury, which is higher than ever before. \u201cInternational buyers are now taking a look at Spain and finding this is the moment to buy, because prices are increasing,\u201d she says.<\/p>\n

\u201cParents are thinking this is a good way to transfer wealth to their children, especially in terms of tax advantages,\u201d P\u00e9rez Bravo says. \u201cThey also know that real estate is a hedge against financial instability and can help them to diversify their investment portfolio. People throughout the Latin world, from Mexico, Venezuela and Miami, are happy for their adult children to study or start a company in Madrid, and they know it has some of the world\u2019s greatest cultural assets.\u201d<\/p>\n

\"\"P\u00e9rez Bravo says there is a noticeable difference in the preferences of the older and younger generations when it comes to property. Whereas parents are more likely to emphasize location and to think of the home as a status symbol, their children are thinking more about the lifestyle the home will afford them. They may put a priority on being close to a golf course or premium shopping, for example. These buyers are driving up the luxury market in parts of cities where the older generation might not have considered living.<\/p>\n

Another issue that mainly concerns the younger generation is sustainability. They want a home that is \u201cgreen and respectful,\u201d says P\u00e9rez Bravo. While E.U. countries already have stringent environmental legislation, the younger generation is happy to go above and beyond.<\/p>\n

Back in New York City, Taub is also seeing a rise in parents opting to buy rather than rent properties for their children. \u201cGiven how tight the rental market has been and how attractive cash sales are for sellers, foreign buyers are opting to purchase rather than rent condos for their children,\u201d says Taub.<\/p>\n

Recently passed regulations have also influenced the growth of cash sales. \u201cThe 2019 tenant protection legislation prohibits landlords from accepting more than one month\u2019s rent and one month\u2019s security, and it is more difficult for foreign investors to rent property in the U.S. if they don\u2019t have a credit history in the country, U.S. tax returns and other documentation required by landlords,\u201d says Taub.<\/p>\n\t<\/div>\r\n<\/div>\r\n\r\n\r\n\r\n\r\n

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The Rise of Women Doing It for Themselves<\/h3>\n

Back in 1981, couples made up 73% of U.S. homeowners, according to data released in November 2024 by NAR. Over the ensuing three decades, that proportion fell to 62%. In the same period, single-woman homeownership rose from 11% to 20%. A similar gender shift holds for luxury property, especially among younger buyers.<\/p>\n

Women\u2019s presence in the high-end housing market is set to increase, despite an enduring gender pay gap overall. According to McKinsey & Company research cited by Bloomberg news in December 2024, women are expected to be in charge of US$34 trillion, or about 38% of all investable assets in the U.S. by 2030, and in a December 2024 speech, Ida Liu, global head of Citi Private Bank, said women will control over 50% of the global wealth market in the next five years. What\u2019s more, data from a March 2024 report from the Bank of America Institute indicates that the coming intergenerational wealth transfer \u201cwill contribute to women controlling more wealth than ever before.\u201d<\/p>\n

\"\"\u201cWe are seeing more women than ever purchasing homes,\u201d says Marsha Burke, global real estate advisor, Scenic Sotheby\u2019s International Realty on Florida\u2019s Emerald Coast. She adds that women now represent about 20% of her clients. Burke\u2019s real estate territory includes some of the best beaches on the Gulf of Mexico, and the beauty of the surroundings is a major attraction for these buyers. \u201cThey are financially savvy and know what they want,\u201d she says. \u201cFinancial autonomy is the overarching theme that has propelled the number of women purchasing their own homes.\u201d<\/p>\n

\u201cFrom personal experience, younger women are motivated to purchase their own homes in part because of the opportunity to build wealth,\u201d Burke says. \u201cSome of the considerations for younger women are long-term safety and security, as well as a space to work from home. They tend to value areas where they will be able to create community connections and lead active lives.\u201d And these women are ready to stand up for themselves, she says.<\/p>\n

\u201cI have had several experiences where women are willing to walk away from the negotiating table if their goals are not being met, both on the sale and the buy side,\u201d Burke says. \u201cGone are the days when there is a difference in negotiating with women versus men. Many women tap into their career experience and are empowered to take on the home-buying process.\u201d<\/p>\n

According to a November 2024 report by NAR, the ages of homebuyers also reached all-time highs last year, with the median buyer age hitting a peak of 56 years old. While the typical first-time buyer was around 38 years old, NAR found some 50% of repeat buyers were 61 years or older. Among them are older single women who are downsizing and moving into homes that are more tailored to their needs. \u201cSome are in their second half of life\u2014they\u2019ve lost a spouse or are divorced and have the wealth to make a choice about where they want to live,\u201d Burke says. Many are looking for an active lifestyle, so they look for access to features such as beaches, gyms and biking and walking trails and opt for buying a new home rather than moving into an assisted living facility.<\/p>\n

\"A

A masterpiece of modern architecture, this state-of-the-art home in Madrid, Spain, has stunning 360-degree views.<\/p><\/div>\n

While she offers a full range of services to all her clients, Burke adds that women buying on their own may be looking to their real estate agents for something distinct. \u201cThey\u2019re looking for a partner to walk them through the process,\u201d she says. \u201cEven once they\u2019re in their new home, we can help them make social connections. I don\u2019t look at it as a sales role\u2014I look at it as a partnership to help them find a home that\u2019s going to make them happy for years to come.\u201d<\/p>\n

On the West Coast of the U.S., Lori Berris, global real estate advisor, Sotheby\u2019s International Realty – Beverly Hills Brokerage, also represents many senior women. \u201cThey are often looking for properties in gated and secure communities,\u201d she says. \u201cThey also want grounds, so they move into 20-acre complexes. They want resort living but in the middle of the city.\u201d<\/p>\n

And while they may be downsizing their individual residences, they still want space for their treasured possessions. \u201cMy clients bring their art, sculptures and furniture,\u201d says Berris. \u201cAt one of my Century City complexes, I feel like I\u2019m at the Los Angeles County Museum of Art.\u201d<\/p>\n

Perhaps only one thing about the luxury housing market is certain\u2014that it won\u2019t remain static. Experts continue to watch interest and mortgage rates closely, even as trillions in wealth, some of it in the form of luxury properties, will shift from older generations to younger. Meanwhile, women will continue to assert their own place in the market, fueled by an increasing concentration of wealth. Add evolving technology and an increasing demand for smart homes by Generation X buyers and what seems undeniable is that the luxury market will continue to evolve in exciting ways. \u25a0<\/p>\n\t<\/div>\r\n<\/div>\r\n\r\n\r\n\r\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

Explore how generational wealth, women buyers, and smart tech are reshaping the luxury real estate market in the 2025 Luxury Outlook Report.<\/p>","protected":false},"author":237480080,"featured_media":4832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[765166268,765166251],"tags":[765166283,765166319,765166317,765166297,765166325,765166322,765166323,765166321,318499075,343480,765166318,765166324,765166253,2155747,765166320],"class_list":["post-4831","post","type-post","status-publish","format-standard","has-post-thumbnail","category-765166268","category-luxury-outlook-report","tag-2025-luxury-outlook","tag-generation-x-buyers","tag-generational-wealth-transfer","tag-global-property-market","tag-global-real-estate-insights","tag-high-end-homes","tag-inheritance-buying-trends","tag-intergenerational-wealth","tag-liv-sothebys-international-realty","tag-luxury-lifestyle","tag-luxury-real-estate-trends","tag-real-estate-for-women","tag-smart-homes","tag-sothebys-international-realty","tag-women-homebuyers"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t