North America Luxury Residential Real Estate Market- Growth, Trends, Covid-19 Impact, And Forecasts (2022 - 2027)

Market Overview

The North American Luxury Residential Real Estate Market is expected to register a CAGR of more than 2% during the forecast period.

Due to limitations, social distancing measures, and the work-from-home lifestyle, the COVID-19 epidemic significantly impacted the North American residential real estate market. At the beginning of 2020, the median sale price of a home in the U.S. was USD 288,000, and by the beginning of 2021, that figure had increased by 14% to USD 329,000. At the start of 2022, the median home price had jumped another 16% to USD 376,000—and was already up to USD 424,000 as of April of this year.

The COVID-19 epidemic has tremendously influenced consumer choices for what they want in a residential home. As a result, individuals are increasingly choosing lavish mansions and vacation homes in outlying locations since they provide more open space and beautiful green surroundings. People have realized the significance of family and well-being. While many big cities saw citizens migrate once Covid-19 lockdowns began, other cities experienced increased high-end property sales and prices. The most expensive listing in Florida in 2021 was 25,754 percent more than the median price.

Scope of the Report

Luxury residential real estate has a premium location, a high price, a huge size, precious materials, professional design, high-end facilities, and historic history. Buyers wishing to acquire a luxury home can pay anywhere from a few million dollars to more than USD 100 million, depending on local property prices. Today, a home is not considered luxury simply because it is expensive or large. Upgraded features like an expansive floor plan, a fully stocked kitchen, and a spacious pool are what luxury home buyers are after now.

The market is segmented By Type (Villas and Landed Houses, Apartments, and Condominiums). The report offers the market size and forecasts in value (USD billion) for all the above segments. The report also covers the impact of COVID-19 on the market.

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Key Market Trends

Emergence of the Millennial Generation in USA

The majority of wealthy millennials are in their thirties. Because many of them can now work from home, their desire to establish a family, combined with the option to relocate to a lower density location, not to mention receiving a low-interest mortgage, creates a perfect storm in favor of buying rather than renting. Approximately 81 percent of Americans aged 23 to 31 who bought a home were first-home buyers, whereas only 48 percent of home buyers between 32 and 41 bought their first home in 2021.

However, millennials are now recognized as one of the real estate's most significant customer groups. According to the National Association of Realtors, 38 percent of millennials currently own houses in the United States. According to Sotheby's International Realty Statistics, millennials bypass modest residences in favor of larger, more luxurious ones.

The epidemic forced them to stay indoors for unusually long periods and reconsider their homestay alternatives. They now want to acquire large homes that accommodate their family's various demands, including the home office. It also shifted their priorities, with many preferring to invest in luxurious houses rather than go to exotic locations. Of course, some market considerations have also played a role.

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