A WSJ. INSIGHTS PROPRIETARY RESEARCH STUDY
THE MINDSET OF THE LUXURY REAL ESTATE BUYER.
EDITORIAL COVERAGE.
Texas Hill Country has become a new destination for luxury homebuyers. WSJ's Real Estate writers covered this trend.
A TEXAS LAND RUSH.
2016 Mansion of the Year
Ranking the Homes of NFL Pros
Robin Williams's Napa Home
Andy Warhol's Hampton Estate
TASTEMAKER INFLUENCE.
Compound-style housing resembles college campuses with modular living spaces connected by long hallways.
THE CAMPUS-STYLE HOME.
Transitioning from a futuristic-style home to a subtle, yet fully-equipped living space.
THE SMART HOME.
WSJ looked to top interior designers to find out what trends would lead in 2016 and which were predicted to fade out.
INSIDE THE HOME.
Originally published in 2003, this article is highly viewed by home sellers and gives agents the insight into their advantages.
ADVICE FOR SELLING.
2016
LUXURY REAL ESTATE STUDY.
Source: : WSJ. Insights 2016 Luxury Real Estate Study Base: Total Currently Own n=1,737; New York n=111; Washington D.C./Baltimore n=91; San Francisco n=80; Dallas/Houston n=97; Los Angeles n=83; Chicago n=80; Boston n=52; Philadelphia n=53; Atlanta n= 50; DMA footprint for all markets. Q2. Which one of the following best describes your current primary residence? Q4. What is the approximate market value of your current primary residence? (If you are unsure, please give your best estimate).
Of WSJ Readers Own Homes
91%
WSJ READERS ARE HOMEOWNERS.
Average Market Value
NATIONAL AVERAGE / $946 K
1 / SAN FRANCISCO 2/ NEW YORK 3/ LOS ANGELES 4/ BOSTON 5/ WASHINGTON D.C. 6/ CHICAGO 7/ DALLAS/HOUSTON 8/ ATLANTA 9/ PHILADELPHIA
$2.3MM $1.6 MM $1.5 MM $1 MM $949 K $828 K $805 K $756 K $636 K
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Total n=1,919; own secondary residence answering n=611; San Francisco n=36, Chicago n=31, New York n=43, Dallas/Houston n=33 Q5. Do you currently own any secondary/vacation home(s)? Q7a What is the approximate market value of your vacation/secondary residence? ( if you own more than 1 secondary home, please give your best estimate of your most recent purchase)
Average Homes Owned
2.6
AND SECONDARY HOMEOWNERS.
AVERAGE MARKET VALUE FOR SECONDARY HOMES
NATIONAL AVERAGE / $846 K
1 / SAN FRANCISCO 2/ CHICAGO 3/ NEW YORK 4/ DALLAS/HOUSTON
$1.6 MM $983 K $931 K $741 K
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Own secondary residence n=611 Gen X n=124 Boomers n=330; base unstable for Millennials Q7.For which of the following purposes are your vacation/secondary homes used?
Use as a weekend and vacation home.
Use as investment or rental property.
67%
40%
HOW ARE SECOND HOMES USED?
Source: Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: 2016: Total n=1,919;, 2014: n=8,495 2014 Buy or rent primary residence; Q8. In thinking about your next real estate purchase (investment property, vacation home, primary residence) what is the time frame you anticipate it will take place? 2009, 2012 data not weighted, use for directional purposes only.
WSJ readers are more primed to buy now compared to the last three studies.
35%
37%
2009
2012
2014
Ready to Buy Within 5 Years.
44%
58%
PREPARING TO BUY.
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Plan to purchase home in next three years n=736; San Francisco n=46, Chicago n=36; New York n=66; Los Angeles n=45; Dallas/Houston n=36; Wash DC/Balt. n=50; Q8. In thinking about your next real estate purchase (investment property, vacation home, primary residence) what is the time frame you anticipate it will take place?
of intenders plan to buy within the next 12 months.
1 / SAN FRANCISCO 2/ CHICAGO 3/ WASHINGTON D.C. 4/ NEW YORK 5/ LOS ANGELES 6/ DALLAS/HOUSTON
50% 38% 32% 31% 31% 31%
BUYING WITHIN THE NEXT YEAR.
Source: Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Total except not applicable n=1,814; Q10 In thinking about future real estate purchases, what is the maximum price you would consider for your primary residence?
400,000
More than the national average market value of our reader's homes
WILLING TO SPEND MORE.
1.39 MILLION
Projected budget for the next primary home purchase
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Selected at least one amenity/feature n=1,814 Q9. What amenities/features are so important that you would be willing to pay more for, in your next real estate purchase?
The top 5 indoor features WSJ readers would pay extra for when purchasing a home.
48%
51%
53%
73%
59%
Open Plan Living Spaces
Dual Sinks in the Bathroom
Hardwood Floors
Top Tier Kitchen Finishes
Master Bedroom Suite
INDOOR AMENITIES.
The top 5 outdoor features WSJ readers would pay extra for when purchasing a home.
27%
36%
70%
Workshop Space
Waterfront
Three-Car Garage
Mature Landscaping/Lighting
Outdoor Space (deck, patio)
OUTDOOR AMENITIES.
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Selected at least one amenity/feature n=1,814, Millennial n=115, Gen X n=439 Boomer n=839 Q9. What amenities/features are so important that you would be willing to pay more for, in your next real estate purchase?
Areas that buyers value.
Mature Landscaping
38%
34%
23%
47%
31%
24%
33%
39%
Built In Tech
Large Yard
Gen X
Boomers
Millenials
GENERATIONAL PREFERENCES.
San Diego, CA (354 mi.)
Las Vegas, NV (297 mi.)
Phoenix, AZ
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Total except to another country n=1,756 Q11. Thinking about your next primary residence purchase, how far would you consider moving from your current primary residence? “Relocate” defined as moving 50+ miles from current primary residence
Average distance of next move
300 Miles
Plan to relocate outside of their local market
50%
LONG DISTANCE RELOCATION.
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Total n=1,919; Millennials n=121; Gen X n=462; Boomers n=886. Q12. Which of the following location would you prefer for your next primary residence?
52%
6%
25%
20%
28%
43%
Rural
Suburban
Urban
LANDSCAPE PREFERENCES.
Regions in consideration for next primary residence.
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Total n=1,919; Q13. What regions are you considering for your next primary residence?
22%
17%
South
Northeast
Midwest
West
HOT MARKETS.
SBase: Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Total n=1,919; Q20. Thinking back to your last home purchase, how many houses did you visit before you made an offer that was accepted
11 Homes Visited
On average before making an accepted offer
1 / SAN FRANCISCO 2/ LOS ANGELES 3/ ATLANTA 4/ CHICAGO 5/ NEW YORK
15 14 12 12 12
FIERCE COMPETITION.
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Ever purchased a home n=1728; Q19 Thinking back to your last home purchase, how long did you or your spouse/partner spend at each stage of the purchase process?
®
Today
August 23
July 6
July 3
June 10
Accepted Offer
56 Days
113 Days
116 Days
139 Days
142 Days
June 7
Readying/making offers
After one month, begin working with a REALTOR
Visiting open houses
Looking at listings online
Looking at print listings
THE FIRST STEP IS PRINT LISTINGS.
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Took any action n=1,537; Q21 After reviewing real estate listing in print publication, what actions were you or your spouse/partner most likely to take, if any?
61% act after reviewing print listings in The Journal.
THE NEXT STEPS.
54%
Save for future reference
Visit another website
Email/call REALTOR directly
Visit website of agent or property site
Source: WSJ. Insights 2016 Luxury Real Estate Study; Base: Total n=1,919 Q22 How often do you read the real estate features/real estate listings/ads in the Wall Street Journal; Regularly, Often, Sometimes, Rarely; Q23. Please indicate below the extent to which you agree with each of the following statements; GfK MRI WSJ Starch Adnorms Base: Noters
Read residential real estate listings advertising in WSJ
Agree "WSJ is an appropriate enviroment of luxury real estate listings"
84%
93%
ADVERTISING IN THE JOURNAL.
Source: nternal records/Omniture Average monthly page views 12-month time frame September 2015-August 2016; WSJ. Insights 2016 Luxury Real Estate Study; Base: total n=1,919 Q22. How often do you read the real estate features/real estate listings/ads in the Wall Street Journal; Regularly, Often, Sometimes, Rarely
4,000
2.5 MILLION
Read the articles on residential real estate in WSJ
Articles covering real estate in the last 12 months
Average monthly page views for WSJ.com Real Estate
WSJ IS THE GO-TO SOURCE.
THANK YOU.
