Top Emerging Luxury Real Estate Trends Every Investor Needs to Know
Most of our clients do not spend a lot of time thinking about luxury real estate. Sure, we have some really expert fix-and-flip investors on our team as well as some truly amazing short-term rental strategists that make everything look and feel like the lap of luxury, but we usually find that most of our clients are focused on helping American families find long-term residential housing in one of the most competitive housing markets in the country’s history. As a result, they often assume that luxury trends like the ones Coldwell Banker analyzes early in every new year probably do not have a lot to do with them. However, the fact is that sometimes a little luxury will go a long, long way toward improving your bottom line.
For this reason, our team tracks these trends in large part so that you, the investor, do not have to. We watch the latest in luxury real estate looking for everything that might be relevant to our investors’ desire for higher returns. Take a look at some of the top emerging luxury real estate trends for 2021 and then we’ll discuss why they should matter to you.
Trend #1: Privacy
Thanks to COVID-19, we’re spending more and more of our time with friends outdoors. Rentals with beautiful and private outdoor spaces are increasing in value and appeal all the time. High-end luxury buyers have always valued their privacy, but these days, everyone finds that good fences make better neighbors than ever.
As a bonus, if that private or semi-private outdoor space comes with some beautiful views, emphasize that as well! Luxury buyers have always been willing to pay for the scenery, but these days just about everyone will pay a premium for beautiful outdoor vistas even if they are not the “traditional” eye candy.
Trend #2: Multiple Kitchens
Now, we’re not saying that you need to start installing multiple kitchens in your rentals, but you can learn a thing or two from luxury buyers and their need for two or more high-end kitchens in their mansions. According to HomeAdvisor, a high-end outdoor kitchen (in addition to the regular indoor kitchen) in a top-tier property can add a value of nearly $100,000. For rental purposes, a more mid-range option that might just include a really nice patio and fire pit could do the trick – assuming you’re willing to assume the risks associated with the fire pit, of course. If you’re fix-and-flipping, this addition is a no-brainer!
Trend #3: White-boxing
We all know the value of staging, but high-end buyers are currently in the middle of a “white-box” trend that has sellers stripping everything down to the bone, white walls so that buyers can start from scratch once they make a purchase. Again, this trend should be modified for your rentals, but if you are willing let a renter make certain customizations to a property, you may be able to command premium rents from tenants who would have preferred to buy but simply could not win a home in the current market.