One of the charters of Luxury Portfolio Fine Property Collection® is to help our members stay up-to-date on the latest stats and information on the luxury consumer. The data, of course, is always good, and we find that through proprietary and primary research, sponsored studies and generally reviewing trends. The ultimate resource though is our members. We have unique insight into consumers’ hearts and minds through the brokers that are part of the Luxury Portfolio Fine Property Collection®, as they are our eyes and ears on the street. We usually share our findings through our Be Your Luxury Self® education program but thought we’d share a bit with The Real Estate Beat as well.

Much as we’ve reported in the past, today’s affluent buyer continues to define “luxury” as something that is highly personal. It’s interpreted more and more by the individual and something that a person judges for him or herself.

The more we as real estate professionals can make our service customized, individualized and personal, the more today’s luxury consumer will value us.

This trend towards personal experience and interpretation is reflected in general in a move away from conspicuous consumption and buying to impress. Just as John D’Ambrogio of Rubloff, Inc. in Chicago recently noted in this post, it’s not so much about a trend towards ”luxury shame,” but more a redefinition of what constitutes luxury. Global trends definitely point to a decline is conspicuous consumption.

Now that doesn’t mean gloom and doom for luxury. It simply means today’s luxury consumer is spending their money more wisely. Today’s affluent consumer is more likely to value the customized services of a personal shopper than they are an oversized designer bag. In fact, when asked to define “luxuries,” the item that often rates highest is time and being able to spend that time with family.

Tere Foster, a contributing blogger and luxury real estate professional with Windermere in Seattle recently shared how this trend is being reflected in the Seattle market with a demand for more manageable and family-friendly floorplans. As she points out, it’s not so much about square footage but about what you do with that space.

So what does that mean for our real estate professionals? Helping a buyer to understand and see how a home with a large kitchen/family room will enhance their family time is something that will resonate. According to a recent study by the Luxury Institute, vacation homes are still the most desired luxury item by wealthy U.S. consumers. In the study 19% of wealthy consumers currently own a vacation home, but a remarkable 42% are considering purchasing one.

So if time and family are the ultimately luxury this is good news for the real estate industry over the long run. There is no question but that the affluent consumer is still out there; it’s just about understanding the factors that influence their buying decisions and getting a pulse on their hearts and minds.

Posted By: Stephanie Pfeffer