As more young couples begin buying homes, an increasing number are saying, "I do" to custom luxury homes. Why? Why are more young couples interested in building a luxury home versus purchasing a fixer-upper?
Weren't young couples all buying tiny houses a few years ago? What has changed in the market? Why are more couples turning to luxury homes?
Let's take a look at all the things influencing the luxury home building market for young buyers today.
The Current Luxury Home Market Doesn't Cater to Their Needs
Even though many millennials are still struggling to find financial footing, around 618,000 people between twenty-four and thirty-eight have a net worth of over one million. The current low-interest rate, lower prices, and more flexible market conditions allow younger buyers to enter into a once more competitive luxury real estate market.
Additionally, an increasing number of these young buyers look at luxury real estate not just as a place to live but also as a financial investment. Millennials have seen two "once-in-a-lifetime" recessions, and as a result, aren't as keen on investing in the stock market.
Instead, they prefer something a bit more stable – luxury real estate. However, traditional luxury homes are located in sleepy suburbs and don't cater to most modern young couples' needs.
Most young couples who can afford luxury homes look for homes closer to the city and houses that require minimal maintenance. Unfortunately, most luxury homes are in outer city, suburbs and were built to need lots of ongoing maintenance.
As a result, many young couples have decided the best way to get the luxury home they want is to have one built.
The Benefits of Building a Luxury Home
Building a luxury home results in many benefits. Not only are you able to get a home in the neighborhood you want, but there are other advantages, too.
1. Luxury homeowners can invest in green and environmentally-friendly techniques and materials, like ICF concrete block homes, high-grade foam
insulation, green roofing, recycled building materials, solar panels, and more. It's very challenging to have a completely green and energy-efficient home without custom building.
While this might not seem like a huge deal, an increasing number of young home buyers want an environmentally friendly home that reduces their carbon footprint and decreases their monthly electricity bill.
2. When choosing to build your luxury home, you don't have to worry about repairs or maintenance. Many young couples want luxury homes without maintenance or potential repairs. By building a brand new, luxury house, there's no fear of repairs down the road.
3. Luxury home building helps buyers stay on budget. Many people are worried that they'll go off-budget with luxury home building; however, that's not the case. In luxury home building, buyers really have complete control in design and materials. For example, if the overall price needs to be lowered, they can go with luxury vinyl flooring instead of natural stone. Luxury homes are placed on the market with very little wiggle room on the budget. Buyers who build their luxury homes have much more control over the budget.
4. With custom luxury homes, you can get what you truly want. No two young couples are the same, which is why building luxury makes so much more sense. You want to make sure that your home caters to what you want. For some buyers, durability will be of utmost importance, so they'll choose features like impact resistant shingles and brick. For others, aesthetics will be the most essential thing, so they'll select features like clay tile roofs and natural stone siding.
Ultimately, with a custom home, buyers get precisely what they want, and that's genuinely the goal with luxury home buying. It's no wonder that more and more young couples choose to say, "I do," to luxury home building.
Jordan Swift is a contributor to the Innovative Materials blog. He is a content writer for the construction and home improvement industries with an interest in landscaping, outdoor remodeling, and interior design. Jordan is focused on educating homeowners, contractors, and architects on innovative materials and methods of construction that increase property value, improve sustainability, and create a warm and welcoming ambiance.