by Dan Krell
What comes to mind when you think of a luxury home? When asked, many people first think a luxury home is a very large and expensive home. However, a luxury home does not have to be the largest or the most expensive home in the area; in fact a luxury home could be a townhome or condominium.
Although price alone does not signify a luxury home, luxury homes are more expensive than the average home. Regardless of price, luxury home ownership is on the rise. Consider the Joint Center for Housing Studies (Harvard University) report from 2004 indicating that homes costing over one million dollars are the fastest growing market segment in the country such that the United States Census Bureau had to change the top census category of home value from “$500,000 or more” in 1990 census to “$1,000,000 or more” in the 2000 census.
So what makes a home a “luxury home?” It is mostly about the home owner’s lifestyle, which is typically a combination of: personal expression, house amenities, construction quality, and physical location. A typical luxury home buyer will pay the price to create their perfect home and to make it express their lifestyle.
Lifestyles and homes have changed a lot over the years; consider that in the United States, the average home in the 1950’s was about 980 square feet while today the average home is over 2,400 square feet! As lifestyles change, trends in luxury home building will change to fit the luxury home buyers’ personality and routine. Most luxury home buyers are willing to pay more for a home in the perfect location with customized amenities.
Luxury homes usually have many state of the art amenities including the latest in appliances and recreation facilities. State of the art kitchens are usually standard in a luxury home. Current trends in high end kitchens include prep-kitchens inside the main kitchen so as to keep the main kitchen clean, as well as high tech appliances connected to the internet so you can either order groceries from your fridge or cook a turkey while at work (via phone commands). Additional luxury amenities include walk in closets (closet sizes rival the average bedroom) that are well appointed with center islands and dressing areas. Other amenities depend on the owner’s personal interests and hobbies. You might find these indoor facilities in a luxury home: theatre, basketball court, bowling alley, or swimming pool.
Luxury home construction is distinct from other construction because of the customization and materials used (such as exotic woods, imported marble, and custom fixtures). Luxury homes are now being designed for room flexibility and continuous room flow. The price of a luxury home is higher than the average home because of these design and construction features.
Do you like what you see in some of today’s “dream homes?” Today’s luxury home trends tend to become tomorrow’s norm. For example, the washer/dryer, dishwasher, air conditioning, microwave oven, granite counters, and stainless steel appliances (the list goes on) were once considered to be a luxury- but are now the norm in many homes: So, who knows? Maybe your next home will have that indoor basketball court!
This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of April 21, 2008. Copyright © 2008 Dan Krell.