Wealthy millennials want homes that are within walking distance of their social lives, and it's redefining how they're thinking about traditional luxury locations
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- Millennial millionaires focus on walkability when buying luxury real-estate, according to a new report by Coldwell Banker.
- It's all about convenience - they want to be close to the action near people, shops, fitness facilities, and cafes.
- Rich millennials are redefining what a good location means in real estate: Instead of buying outside of town, they'll choose a non-traditional luxury neighborhood if it's near a gathering space.
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For rich millennials, the living is easy when everything they need is within walking distance.
While walkability isn't a new concept in luxury real-estate, millennial millionaires are redefining its importance. According to a new report by Coldwell Banker, they're likely to choose a non-traditional luxury neighborhood over a traditional luxury neighborhood if it means they can walk to the local café.
The Coldwell Banker Global Luxury program worked with wealth intelligence data and research firm WealthEngine to analyze the lifestyles of millennial millionaires, from wealth creation and property investments to spending trends. It defined millennial millionaires as those ages 23 to 37 with a net worth of more than $1 million.
"They want to live near gathering spaces," Karen Yang of Coldwell Banker Residential Brokerage in Los Altos in California said in the report. "They want to live near throwback downtowns, or districts that grew organically - and they are willing to give up square footage and amenities to be able to live in those kinds of locations."
Being able to walk to work, stores, and the gym is the winning factor
Danny Hertzberg, Coldwell Banker Global luxury ambassador and member of The Jills-Zeder Group from Coldwell Banker Residential Real Estate in Florida, sees this happening in Miami.
"Walkability is a really big thing," he said in the report. "They want to be able to walk to neighborhood coffee shops and bakeries ... Health and wellness is a priority for them, so they like to be close to fitness facilities and yoga studios."
He continued: "Location has always been a factor in real estate, but what's changed is the definition of what is a good location. It used to be that the prestigious neighborhoods were gated and secluded, often outside of town. Millennial buyers want to be close to the action."
Business Insider previously spoke with several real-estate agents in three states that are popular among rich millennials - New York, California, and Florida. They, too, all told Business Insider that location and walkability are key factors among buyers.
In New York City, many want to be able to walk to work, Ian Slater of Compass told Business Insider. Millennials also want to walk to restaurants, recreational activities, and, in the case of Florida, the water, West Palm Beach real-estate agent Burt Minkoff of Douglas Elliman said.
"Primarily, millennials are focused on location as the main selling feature," Southern California agent Sally Forster Jones of Compass said. "Whether they are looking for views or a home with walkability to local shops and/or their job, the location plays a major part in the decision-making process."