Millennial Impact on Luxury Real Estate

Millennials are increasingly shaping the luxury property market. According to the 2025 Sotheby’s International Realty agent survey, individuals born between 1981 and 1996—currently aged 29 to 44—have emerged as the second fastest-growing group of homebuyers, with 32% of brokers reporting this trend. In the U.S., there are about 72.7 million Millennials, and they overtook Baby Boomers in 2024 as the largest group of homebuyers. The National Association of Realtors (NAR) revealed that Millennials made up 38% of homebuyers in 2024, a significant rise from 28% in 2023.

This shift in the market has been building for several years. The Washington Post reported in 2022 that Millennials are particularly influencing the luxury segment of the housing market. Furthermore, a May 2024 report from Toll Brothers, a major homebuilding company, revealed that 30% of its customers were first-time buyers—and most of them were Millennials.

Looking ahead, wealth transfer from older generations is poised to have a lasting impact. A January 2022 report from Cerulli Associates forecasts that Millennials could inherit as much as $27 trillion by 2045, from a total of $84 trillion passing from the Silent Generation and Baby Boomers. With this immense wealth transfer on the horizon, understanding how to capture the attention of this generation, what sources they trust for real estate advice, and the unique preferences they have is crucial for those in the luxury market.

One of the most effective ways to reach Millennials may be through social media. A decade ago, properties were promoted through long-format videos. Today, Tiktok videos and Instagram reels provide easy ways for properties to go viral amongst the MiIlennial crowd. This generation is one of the most active age groups on social platforms, with a 2024 McKinsey & Company report showing that Millennials and Gen Z purchase products through social media four times more often than older generations. In fact, more than a third of Millennials and Gen Z respondents reported making a purchase on social media in the past three months. A 2019 Statista report further revealed that 65% of Millennials considered social media to be “extremely” or “somewhat” influential in their home decor decisions.

In conclusion, Millennials are not only disrupting the luxury property market but are also setting new expectations for how real estate is marketed and sold. With their growing purchasing power and distinct digital habits, understanding their preferences and meeting them where they are—on social media through trusted digital channels—will be key for anyone looking to engage this generation in the luxury real estate space. As the market continues to evolve, keeping pace with these trends will ensure success in attracting and retaining Millennial buyers.

Data pulled from the Sotheby's International Realty Luxury Outlook Report.