Austin breaks into ranking for top luxury home markets; younger millionaires impacting the data

Oct 3, 2014
Austin Business Journal

Austin historically hasn’t been known as a hotbed for luxury home sales relative to the rest of the country, but that might be changing. Coldwell Banker Previews International released its Luxury Market Report 2014 Edition II Thursday and Austin cracked the Top 20 for number of home sales valued at more than $1 million

The Austin Business Journal has been tracking the luxury residential home market closely during the past year, computing which ZIP codes have the highest home values, what listings are the most expensive in the market and who the agents are that are vying for market share in the luxury housing market. Even Concierge Auction, a New York-based auction house specializing in creme de la creme properties, moved a large segment of its operations to Austin earlier this year to tap in the lucrative market

Austin’s appeal to young, successful entrepreneurs may be driving up the velocity of luxury home sales here

Based on Coldwell-Banker's interviews with 506 ultra-wealthy individuals, certain trends are emerging. Younger millionaires, which Austin is breeding in greater numbers, are spending more than older millionaires for their homes. For example, those under 35 who were surveyed spent an average of $7.8 million for their last home. Buyers between 35 and 44 spent $6.8 million and those between 45 and 64 spent $2.7 million. Wealthy individuals 65 and older played it safe, spending on average a cool $1 million

Younger wealthy buyers tend to buy for lifestyle rather than location — another factor that favors Austin with its young, vibrant demographic. The Internet and travel options allow them more latitude in where they choose to live. They tend to want the instant gratification of a turnkey property, and social media impacts their housing decisions. Younger buyers also support green housing with one-third of the under 45 group demanding eco-friendly options

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