A real estate expert discusses what today’s consumers are looking for in the luxury home, what spaces matter most and how design and technology factor into their decisions.

By Dianne M. Pogoda

Pandemic-induced lifestyle changes have permeated nearly all aspects of life — and luxury is no exception.

At the NKBA Luxury Bath Summit, presented in partnership with Cambria and sponsored by House of Rohl, realty expert Julie Faupel, founder and CEO of real estate tech firm Realm Global, discussed the evolving the definition of luxury, the elements today’s consumers and realtors seek in luxury homes, how these features differ from generation to generation and why this information is important to designers.

“Luxury Is Dynamic”

“Baby boomers and prior generations have a static opinion of what defines luxury,” said Faupel, whose company connects elite realtors and elite clients. “That’s the luxury of things: A certain brand of handbag, a Rolex watch, Gucci shoes, etc. More recently, we moved into the luxury of experiences: how people are sharing their time together, families going on vacation together, doing things together that build on the foundation, but working more on the economy of the shared experience.”

During the pandemic, there was another shift in the definition of luxury, and that was toward peace of mind, she noted. Wellness and self-care are major factors in today’s luxury bathroom, and they’re top priorities for potential buyers. For instance, aromatherapy, technology that provides comfort (heated floors or shower benches), adjustable lighting, customized storage to accommodate all bathroom needs, tech that assists in personal hygiene (bidet seats and smart toilets) and media in the bathroom are all part of the luxury experience.

“Consumers wanted to feel safe and secure, they were cocooning, they were in their homes focused on nuances like air filtration and elbow room,” she said. “Now, post-pandemic, we’ve shifted to the luxury of innovation and agility. The speed and pace of change has never been greater, and this ‘great disruption’ has caused a learning curve unmatched in human history. Radical resets like the global pandemic are going to become the norm, and for us to stay relevant, we must stay on top of our game.”

Using statistics from luxury market researcher Wealth-X, Faupel said $10 trillion is transitioning to the Millennials from the Baby Boomers, making Millennials the largest spending population ever. And as this spending power shifts, so does the definition of luxury, from “pompous, pretentious and status-driven” to customization, design-driven and working with companies and individuals with excellent reputations.

“Our role as realtors and designers is to be the generational interpreter of what luxury means, and how we bridge the gap between the seller and the emerging homebuyer, as well as for the older purchaser who is looking to downsize.”

Faupel noted that prior to the pandemic, Millennials seemed to have more of a rental mentality as opposed to a buyer mentality — a disconcerting notion for real estate professionals. “That did a 180 in the pandemic. [Millennials] really started to become buyers — they’re buying later in life, but they’re buying homes at a higher level. They have more income and more net worth. This is creating a scarcity in the market, particularly at the high end: $3 million to $5 million and even higher.” 

But their aesthetics and needs are different, and she described several strategies to help all generations of buyers and sellers:

  • Team diversity and worldliness. Different perspectives and knowledge of travel establish credibility in the eyes of the consumer, especially when dealing with affluent and high-net-worth individuals, who want to be “citizens of the world.”
  • Building community within the home. “We went from wanting to be in the central corridor of communities to wanting elbow room, wanting ‘legacy’ properties, family compounds. People want to be separated somewhat from society, but remain with their family and friends. They’re looking to travel with staff – educators, personal chefs, etc., to accommodate a bigger life.” Faupel said that since the home is expected to function for work, family, school, gym and more, the overall experience and comfort level can be enhanced with lighting, technology, at-home spas, wet rooms, fitness and meditation areas.
  • Giving back. Social consciousness, creating wellness, giving back to the community and being responsible with recycling. Creating “well” kitchens, for instance, with humidity-controlled cabinetry, enough natural light to maintain an in-house garden to maintain their own sustainable food.

“The sense of community-building is a growing trend,” she explained. “A lot of this ties into the fact that we’ve all been deprived of community in the past two years, and now it’s coming back strong.”

NKBA’s Luxury Bath Summit was based on the exclusive 2022 Luxury Bath research report. The report is available for NKBA members to download as part of their annual membership. Non-members may purchase the report for $1,995. Visit NKBA Research to download.

The Luxury Bath Summit is available to watch on demand. Members need to log in to nkba.org and may view at no additional charge; non-members who registered may access the videos as part of their registration fee; other non-members may purchase the video package for $99. Click here for more.