Trends in Luxury Home Buying
and Community Development

Cash purchases in real estate seem to be on an upward trend, driven by a huge transfer of wealth occurring as the Depression and World War II generations pass their assets to adult Baby Boomers. According to a report by Merrill Lynch this giant shift of funds will continue to the tune of $41 trillion over the next few decades. While not all heirs will be made wealthy, many of them will combine their new money with home equity or other assets and move up. Others will fund children’s educations, buy second homes, invest in stocks and bonds, or acquire other assets.

The National Association of Realtors and Unique Homes magazine found that the average million-dollar home buyer was 47 years old, married with one child. Two out of 10 buy more than 500 miles away from their prevous home. Because the majority of million dollar home buyers are self-made and come from the middle class they tend to bring their middle-class values with them. These values are security, health, self-betterment, family, children’s education and community. They have achieved the American dream the American way.

New home builders have catered to these middle class values in the design of new million-dollar communities in Carlsbad such as La Costa Oaks, The Bay Collection, La Costa Greens and La Costa Ridge. Millionaire home buyers are attracted by the sense of community created in these new developments where the streets are designed to look and feel like an authentic small town. Children can feel safe playing in the streets and neighbors can interact spontaneously on the sidewalks, at pocket parks or around the pool and clubhouse. Perhaps even more important is the access to quality schools and the highly desirable lifestyle elements such as proximity to the beach and a climate conducive to an outdoor lifestyle.

Future trends in luxury home developments (vs custom homes) include a desire for greater differentiation in home style and less of a “cookie cutter” look to the streets. More green living features, such as rooftop solar panels, are anticipated, as well as the development of “wired communities,” residents-only intranet systems where users socialize and identify others with similar interests.