Millennials and the younger portion of Generation X who grew up wealthywill likely purchase large homes in cities with their inherited fortunes, according to a report published Tuesday.
As high-net-worth baby boomers begin the wave of intergenerational wealth transfer, their children and grandchildren aged 25 to 49 are expected to receive an average of $3.8 million in inheritance, according to the study by YouGov, a London-headquartered market research firm, and Luxury Portfolio, a global network of luxury brokerages.
This mixed group is even creating a new class that researchers termed "The New Aristocracy," as "they will ultimately be larger in number and greater in economic power than the wealthy in the gilded age of the Rockefellers."
More:Millennial Buyers Have Real Purchasing Power and Expect to Be Wowed
About 16% of the group expect to inherit $10 million or more; 18% will inherit between $5 million and $10 million, according to the report, based on 536 interviews from Dec. 9 to Dec. 18, 2017 with Americans aged 25 and older who currently have investable assets of $1 million and more.
As this generation is more likely to have grown up in affluent families and have greater exposure to luxury lifestyles, they have strong likes and dislikes when it comes to real estate choices.
More than half, or 54% to be exact, of those interviewed said that they prefer urban locations as their personal residence. About 25% are looking to buy a home sized 5,000 to 7,500 square feet, while 23% want 20,000 square feet or more. Many are looking for four or more bedrooms and three or more bathrooms, according to the report.
As for home designs, those high-net-worth buyers often desire a more traditional exterior with open spaces, contemporary design and modern conveniences inside. As such, loft-style homes will likely be in high demand, the report said.