The luxury housing market was thriving at the end of 2023. Even with limited inventory and fluctuating interest rates, deep-pocketed buyers remain resolute about what they want (and don't want) in 2024. Amenities once considered ostentatious have become common, which has forced sellers and builders to take luxury to the next level.
Roughly 86% of luxury homebuyers rank double vanities as a must-have when searching for a home, according to a new survey of real estate agents from real estate brokerage Redfin.
Next in line are kitchen islands and granite or quartz countertops, with 85% of luxury buyers requesting both, followed by 83% requiring walk-in pantries. What’s more, over half of luxury homebuyers would likely not make an offer on a home with an outdated kitchen.
Among the agents surveyed, other “very common” items most high-end buyers deemed essential included heated floors (17%), an integrated sound system (14%), a prep kitchen (13%) and a coffee station (12%).
“Luxury buyers are looking to fall in love with their future home, and they often make emotional decisions because they have the financial means to do so,” said Andrew Rottner, a Redfin Premier Agent in Denver.
Luxury buyers want open floor plans and more
Open-concept floor plans were desirable to luxury buyers, according to more than 80% of the agents surveyed. Granite countertops were also ranked as “very desirable” over past trends such as sliding barn doors and shiplap, the agents said, with just 8% ranking these features as “very desirable” for buyers.
Coldwell Banker's most recent Global Luxury Report showed that luxury homebuyers want multifunctional homes that cram as many configurations as possible into their footprints, primarily because of how and where we now live, work and play, often under one roof.
High-end buyers are less interested in remodeling an older property to fit their needs and more likely to move into a modern space where even the furniture is picked out for them. Roughly 70% of agents surveyed noted a rise in the popularity of newly constructed homes, with luxury homebuyers showing “very little tolerance for outdated designs and features, even in situations where the construction is relatively new.”
Luxury buyers turned off by outdated kitchens
Over half (54%) of homebuyers are unlikely to make an offer on a luxury home if its kitchen is outdated, according to the Redfin agent survey. But when you consider that a kitchen update can cost between $78,000 and $154,000, depending on where you live, (according to Remodeling Magazine's Cost vs. Value Report for 2023), sellers may be unwilling or unable to satisfy luxury homebuyers with everything they want, yet still make the sale.
Lack of curb appeal (48%), obsolete bathrooms (44%), and popcorn ceilings (40%) are the next undesirables. In the Redfin survey, agents were also asked when a buyer would decide not to make an offer on a home based on specific features.
Most sought-after outdoor feature
Nearly 70% of luxury homebuyers say landscaping is a must-have outdoor feature, and 58% say indoor/outdoor living spaces are highly desirable. A covered patio (46%) and a pool (33%) also rank high as prerequisites.
To learn about housing market trends and download data, visit the Redfin Data Center.
