Press Release
07-07-2008
Architectural Digest and Sotheby’s International Realty® Brand Release Exclusive Survey Findings on Luxury Real Estate Market Consumer Trends
Survey Findings Contradict Media Perceptions in the Marketplace
New York, N.Y. — Despite media reports to the contrary, real estate is still considered a sound investment and affluent consumers are confident both in the current housing market and that the value of their home has remained constant, according to a consumer research study undertaken by Architectural Digest with Sotheby’s International Realty Affiliates LLC. In the newly commissioned survey, “Seeking an Extraordinary Lifestyle,” 85% of respondents agreed with the statement, “I think real estate continues to be one of the better investments a person can make.” The study further revealed:
- 72% of respondents believe their primary home value has remained constant or increased in value over the last 12 months (46% remained constant; 26% increased).
- Nearly two-thirds of respondents report that current conditions have “no effect” on their likelihood to sell their primary home (63%).
- In the coming year, 79% believe the value of their primary home will continue to remain constant or increase (55% remain constant; 24% will increase).
- In the next year, more than half (54%) of the million-dollar homeowners plan to buy, sell, build or invest in a new home.
- 69% of million-dollar homeowners agree that now is a good time to add to one’s real estate holdings.
- 71% agree, “Over time, nothing beats real estate for building one’s personal wealth.”
The respondents feel that the media plays a role in the perception of the current real estate market conditions:
- Half (50%) of respondents think the media exaggerates conditions to make the market seem worse than it is.
“This study confirms that even in a downturn economy, our readers are what we call ‘recession- proof’,” said Giulio Capua, vice president and publisher of Architectural Digest. “They continue to spend money on real estate and other luxury goods and services.”
According to Michael R. Good, president and chief executive officer, Sotheby’s International Realty Affiliates LLC, the study proves that real estate continues to be seen as a valuable investment opportunity, especially among consumers in the luxury market.
“This study validates the assertion that real estate is one of the best long-term investments a person can make, regardless of current market conditions. Affluent consumers know that real estate plays a key role in their long-term strategy to increase personal wealth,” said Good. “And among those consumers seeking to add to their real estate portfolio, the top criteria for choosing a property are location, price, amenities and home features.”
Research Methodology
Beta Research Corporation conducted a geo-specific mail survey to 3,500 Architectural Digest subscribers with a household income of $100,000+ and a home valued at $1,000,000+ on behalf of Condé Nast Publications in the following designated market areas: New York, Los Angeles, Chicago, San Francisco/Oakland/San Jose, Boston, Atlanta, Miami/Ft. Lauderdale, San Diego, Denver and Detroit. The survey was conducted between February 19 and March 14, 2008. There were 510 respondents.
About Architectural Digest
Architectural Digest is the world’s definitive design magazine, reaching an audience of over 4 million readers each month. The magazine features the work of world-class authors and photographers and regularly presents a “first look” at the homes of leaders in the fields of entertainment, fashion, business, society and the arts. For more information, visit www.architecturaldigest.com