Luxury Portfolio International has identified an emerging group of affluent homebuyers who, it believes, will be “powering” the luxury real estate industry in the next three years, it finds in its 2018 report: “The Rise of the New Aristocracy.”

  • A generation of 25- to 49-year-old affluent buyers, Luxury Portfolio International has dubbed "the new aristocracy," are going to be driving the luxury property market in the next few years.

Luxury Portfolio International has identified an emerging group of affluent homebuyers who, it believes, will be “powering” the luxury real estate industry in the next three years, it finds in its 2018 report: “The Rise of the New Aristocracy.”

The ‘new aristocracy’

Stephanie Pfeffer Anton

The “new aristocracy” are, on average, age 37; they are married, have young families and have inherited wealth or expect to, said the research conducted by YouGov on Luxury Portfolio’s behalf.

They are the consumer to watch, rather than their 50-plus aged counterparts (“luxury loyalists”) when it comes to homebuying, said Luxury Porfolio Executive Vice President, Stephanie Anton from the Leading Real Estate Companies of the World annual conference held in Las Vegas.

For these future homebuyers ranging from 25 to 49, the economic future looks bright — six out of 10 expect an inheritance of $1 million or more, and their current investable assets average $4.7 million, the research found.

The new aristocracy are more likely to have grown up in affluent and wealthy families and stand to inherit nearly $4 million on average. They know brands, they demand quality and they are familiar with real estate.

Anton, due to become president of Luxury Portfolio, the luxury arm of LeadingRE, in April, said the parents of these grown children were often gifting at least part of their inheritance earlier so they could see their families benefit from it.

And they wanted to see their money put into real estate “not to have them go and buy a bunch of purses,” said Anton.

Personal wealth in the U.S. grew by $8.5 trillion in 2017, according to the Credit Suisse Global Wealth Report.

“With phenomenal gains in the stock market, combined with new legislation that favors wealthy families, we expect this is just the beginning to what could be a boom time for luxury real estate,” it added.

Luxe house hunting

The research had some surprises for what the new aristocracy buyers want in a house.

They are primarily looking for an urban home and many are seeking a living area of 5,000 square feet or larger, partly because their families are growing, and other generations may live with them.

They want the extra space so they can have “specialty rooms,” which might be an office, a home theater, a music room, or surprisingly, a separate formal dining room — a welcome revalation to some LeadingRE agents marketing traditional larger homes, said Anton. A space for a home gym also ranked highly and a pool.

And while modern styles (27 percent) are growing in popularity, Victorian, (28 percent) Tudor (24 percent), and brick Georgian homes (23 percent) were desirable too, according to the research.

But while they were happy with a traditional exterior to fit in with the neighborhood, they still wanted a more contemporary interior, said Anton.

As with many of those in luxury world, the new aristocracy is concerned with privacy and security in their homes, ideally that integrates systems with their smartphone.

The report described it as smart home technology centered around sustainable living. “Essential” home features, meanwhile, included outdoor spaces, commercial grade kitchen appliances and nearby dining options.

Luxury loyalists

And while the new aristocracy might be attracting the spotlight in this report, the 50-plus luxury loyalists have their own important characteristics, agents can learn from.

The younger cohort may like a variety of home styles, but the luxury loyalists are looking for contemporary and modern homes predominantly. They like big windows, new technology in materials used and clean, open, light-filled spaces, said the report.

One-fifth of this age group also likes the efficiency, security and amenities offered by large condominium or apartment buildings.

Meanwhile the most important community amenities to luxury loyalists deal with fitness because they want to stay healthy and fit for years.

Note: A total of 536 interviews were conducted for this research by YouGov between Dec. 9, 2017 and Dec. 18, 2017.

Email Gill South

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription