PRESIDENT’S MESSAGE Millennials Enter Luxury Real Estate Market Millionaire millennials? It’s not as uncommon as you might think. The Coldwell Banker Global Luxury® team recently partnered with WealthEngine to study just what wealth looks like in the 23-38 age group, uncovering some interesting insights. “A Look at Wealth 2019 | Millennial Millionaires” analyzed the lifestyle of millennials with a net worth of more than $1 million, including property investments. The results show there are around 618,000 millennial millionaires in the U.S., about 2% of the total millionaire population. While the percentage is small now, it’s expected to climb over the next decade as affluent millennials inherit more wealth from their baby-boomer parents. By 2030, it is estimated that millennials will inherit a sizable $68 trillion, giving them tremendous purchasing power when it comes to real estate. Consider the facts: • 93% have a net worth between $1 million and $2.49 million. • 92% have purchased property, with 80% having bought a single-family home. • 45% are between the ages of 34 and 37. • Their average real estate portfolio is almost $1.4 million.
Ayoub Rabah President Chicagoland, Northwest Indiana, Southeast Wisconsin and Southwest Michigan Coldwell Banker Residential Brokerage
Mirroring the overall millionaire population, the majority of millennial millionaires (44%) live in California, followed by New York, Florida, Massachusetts and Texas. Eight of the top 10 ZIP codes in the nation are in California, with most in Silicon Valley, suggesting a strong tie between tech and wealth creation. When it comes to a good location, millennials have a different definition than their parents’ generation. Even if they can afford prestigious gated communities, walkability is paramount, and they often are willing to give up square footage and amenities to live in an area that’s near coffee shops, restaurants, breweries and parks. Whether you’re a 34-year-old tech millionaire looking to purchase an urban condo, or a baby boomer wanting to downsize, if you’re planning to sell or buy a home soon, contact your local Coldwell Banker Residential Brokerage office today. To view the full report, visit blog.coldwellbankerluxury.com.
