Consumer Mindset in Luxury Buying
#3 Luxury Buyers Experiencing FOMO Over a Frothy Luxury Real Estate Market Fear of missing out (FOMO) is the feeling of anxiety that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on social media. With a year at home and headlines touting the hot market, this has become a significant concern for 26 percent of luxury buyers. FOMO manifests in different ways, first as a true “missed the boat” moment where prices extend beyond reach. A second concern — equally impactful — is arranging finances for major purchases. Percent Select: Significant Concern in the Coming Year | LUXURY BUYERS g FEAR OF MISSING OUT (NET)
g ARRANGING FINANCING FOR MAJOR PURCHASES
g REAL ESTATE PRICES WILL BE UNAFFORDABLE FOR PEOPLE LIKE ME
23% 10% 15%
25% 9% 20%
22% 10% 11%
Better Place To Live
Investment Property
Better Location
31% 24% 11%
Settling Down & Nesting
15%
9%
8%
Better Run City/Town
14 LUXURY PORTFOLIO INTERNATIONAL ®
Buyer Insight: As LPI members have noted in many geographies the land, the building, and the materials all cost more than normal. This extends beyond real estate but harkens back to concerns over weaker purchasing power and rising interest rates.
41% 22% 23%
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