If there's one thing you can count on at The Élan Collection, it's keeping close watch on luxury market news and consumer buying trends. As you know, we have observed “The New Affluent”—an emerging niche of consumers who value conscientious consumption over conspicuous consumption—with particular interest over the last six months. Now that we're past the midyear point, we thought it would be appropriate to recap the Top Five Affluent Market Trends of 2010 so far:
1. THE AFFLUENT ARE SPENDING LESS AND SHOPPING SMARTER.
They still want their luxury goods, but they relish quality--not namesake or status. In other words, they still want to buy their vacation home in Aspen or their Lexus RX, but they might choose a fractional home or a hybrid version instead.
2. FAMILY IS THE NO. 1 PRIORITY.
According to the Survey of Affluence and Wealth in America 2010 (from American Express and Harrison Group), about 83 percent said they eat dinner with their family at least four times a week, up from 16 percent five years ago when they survey began. Real estate expert, Jeremy Conaway, president of RECON Intelligence Services, would agree. Another interesting finding comes from the recent Merril Lynch Affluent Insights Quarterly, which shows the complexities of affluent families: 51 percent of affluent parents cite financial know-how as an important life lesson to impart to their children and 39 percent of these parents are spending more time speaking to their children about financial matters in light of the recent economic recession.
3. CUTTING COSTS IS "IN"; SPENDING FRIVOLOUSLY IS "OUT."
More than 77 percent of respondents in the American Express Survey defined themselves as resourceful and more self-reliant. Online deals and coupons are more popular than ever; and the wealthiest consumers were also more likely to wait for items to go on sale than in the past. And what about that multi-million dollar vacation home in Aspen they were only using 4-6 weeks out of the year? Sold... and replaced with a $1 million share in a luxury fractional estate.
4. VACATIONS ARE STILL IMPORTANT.
According to the 2009 Affluent Shared Ownership Buyer: A Market Profile, nearly nine in ten of those surveyed said that vacationing is important to their well-being and to the health of their personal relationships. Nearly 75 percent of affluent leisure travelers were also interested in purchasing some form of resort real estate in the next two years. Contrast these findings with the the National Association of Realtor's 2010 Investment and Vacation Home Buyers Survey, which found that vacation home sales rose 7.9 percent to 553,000 in 2009 from 513,000 in 2008, and it starts to look like the future for holiday homes is still bright.
5. THEY'RE EMBRACING SOCIAL MEDIA... CAUTIOUSLY.
This one surprised us--but delighted us at the same time. More than 40 percent had Facebook accounts, according to the American Express Survey...though only 8 percent said they use Facebook to make a purchasing decision.
Fortunately for them (and the brokers we have partnered with), The Elan Collection is not only paying attention to the affluent's changing needs and wants, but we are also putting words into action by continuing to add a variety of luxury fractional properties in different price points and locations. If you haven't already done so, make sure to check out our growing portfolio of residences.
What do you think about our list? Do you have any top affluent trends you'd like to add? Let us know!
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