The luxury home market was booming at the end of 2023. Despite limited inventory and fluctuating interest rates, deep-pocketed buyers have a clear idea of what they want (and don't want) in 2024. Amenities once considered flashy have become commonplace, forcing sellers and builders to take luxury to the next level.
According to a new survey of real estate agents conducted by real estate brokerage Redfin, roughly 86% of luxury home buyers cite double vanities as a must-have when searching for a home.
The next most common features are a kitchen island and granite or quartz countertops, with 85% of luxury home buyers asking for both, followed by a walk-in pantry at 83%. Additionally, more than half of luxury home buyers are likely not to make an offer on a home with an outdated kitchen.
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Among real estate agents surveyed, other “very common” items most luxury home buyers consider essential include heated floors (17%), an integrated sound system (14%), a cooktop (13%) and a coffee maker (12%).
“Luxury home buyers want to fall in love with their future home and are often making emotional decisions because they have the financial means,” said Andrew Rottner, a Redfin Premier agent in Denver.
Luxury buyers want open floor plans and more
More than 80% of real estate agents surveyed said open-concept floor plans are popular with luxury home buyers, and granite countertops were rated “very preferred” over past trends like sliding barn doors and shiplap, but only 8% of real estate agents rated these features as “very preferred” by buyers.
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Housing trends that buyers want
Percentage of agents who answered “highly desirable”
Linoleum Floor
1%
Tile Countertops
2%
wallpaper
Four%
Dog washing area
Five%
Bright color accent wall
6%
Barn sliding door
8%
Shiplap
8%
Wet bar or beverage center
twenty two%
Granite Countertops
51%
Open Concept Floor Plan
83%
Coldwell Banker's latest Global Luxury Report found that luxury home buyers want multi-functional homes that pack as many components as possible into the lot, primarily because they now often live, work and play under one roof.
Luxury home buyers are less interested in renovating older properties to suit their needs and are more likely to move into modern spaces where they can even choose their own furniture. Nearly 70% of real estate agents surveyed noted that newly built homes are becoming more popular, and luxury home buyers “have little tolerance for outdated designs and features, even in relatively new buildings.”
Luxury buyers are tired of outdated kitchens
According to a Redfin survey of real estate agents, more than half (54%) of homebuyers are unlikely to make an offer on a luxury home if the kitchen is outdated. But considering that a kitchen renovation can cost anywhere between $78,000 and $154,000 depending on where you live (according to Remodeling Magazine's 2023 Cost vs. Value report), sellers may be unwilling or unable to satisfy all of a luxury homebuyer's wishes to sell.
Lack of curb appeal (48%), outdated bathrooms (44%) and popcorn ceilings (40%) were the next least desirable features. Redfin's survey also asked real estate agents when a buyer would decide not to make an offer on a home based on a particular feature.
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How common is it for a buyer to not make an offer?
Percentage of agents who responded “Very common”
Laundry room poorly located
18%
Old household appliances
31%
Overly textured walls
31%
Confusing paint colors
33%
Outdated carpet
38%
Popcorn Ceiling
40%
Outdated bathroom
44%
Lack of external appeal
48%
Outdated kitchen
54%
The most popular outdoor equipment
Nearly 70% of luxury home buyers cite landscaping as an essential outdoor amenity, and 58% say indoor/outdoor living space is highly desirable. Covered patios (46%) and pools (33%) also rank highly as must-haves.
To learn about housing market trends and download data, visit the Redfin Data Center.
