Commercial PropertyWhat Do Luxury Homebuyers Want?
According to the latest Coldwell Banker® Luxury Index, America"s wealthy homeowners haven"t changed much in their preferences when it comes to the amenities they want to have in their homes or to add to their homes post-purchase.
"The Coldwell Banker Luxury Index provides a snapshot of the state of the luxury home market today, as well as wealthy Americans’ preferences and attitudes when it comes to their homes," suggests Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate Corporation.
The results mirror the August 2004, showing that not much has changed. Luxury homebuyers want security systems, gourmet kitchens, topiary/landscaped yards, home theaters, hot tubs and in-ground swimming pools, just as they did last year. Noteworthy is the fact that 16 percent of respondents indicated that their homes are equipped with bedroom kitchens.
When asked what new high-end amenities they plan to put in their homes in 2005, the top responses from the 300 respondents were:
Topiary/Landscaping -- 23 percent
Home Theater System/Room -- 13 percent
Gourmet/Designer Kitchen -- 12 percent
Hot Tub -- 10 percent
In-ground Pool -- 8 percent
Wine Cellar -- 6 percent
The 2005 Luxury Index also revealed that the number of luxury homeowners planning to purchase home decorations (35 percent) increased significantly, compared to the August 2004 Index (20 percent).
When asked to define the largest purchase they expect to make in 2005, cars topped the list at 17 percent, but a whopping 41 percent of the answers related to the home. Furniture topped the list at 11 percent, followed by home remodeling at 9 percent, among others. In contrast, interest in purchasing boats, yachts, and country club memberships waned compared with August 2004 results.
One thing luxury homebuyers don"t want to do is scale back. While 53 percent of luxury homeowners reported that they are currently on a budget, their spending habits reveal a different story. In the past six months, 60 percent of luxury homeowners reported that they had been to a high-end spa or resort; 46 percent have vacationed internationally; 45 percent have flown first-class on a commercial airline; 17 percent have flown on a private jet; and 11 percent have been on a cruise. In addition, in the last six months, 4 percent of luxury homeowners reported having elective cosmetic surgery.
The study was conducted among 300 U.S. luxury homeowners, defined as those owning homes valued at $1 million or more. The research was commissioned by Coldwell Banker Real Estate Corporation and conducted by International Communications Research in March and April 2005.
Nearly half (47 percent) of the Coldwell Banker® Luxury Index respondents reported an annual household income of $300,000 or more. The largest number of respondents reported a household of four people (27 percent), and a wide range of age groups were represented: under 35 (12 percent); 35-44 (40.9 percent); 45 to 54 (27 percent); 55 to 64 (14 percent); and, 65 plus (5.6 percent).