What is luxury?
In Shakespeare’s England, the area closest to the stage was reserved for the poorest Londoners, who would pay a penny to stand and watch the famous playwright’s masterpiece. Nearly 500 years later, getting a spot near the stage, whether standing or seated, is now considered a luxury, with concertgoers paying hundreds or even thousands of dollars to get up close to their favorite artists.
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The same changes are occurring in food. Can you imagine that oysters were once considered a lower class cuisine? — And fashion — Red has oscillated between extravagant and scandalous, with Italians embracing the color as a symbol of ultimate luxury and Irish people considering red the color of the working class.
Stephanie Anton
The real estate industry is no different as neighborhoods, boroughs, urban areas, and suburbs decline or become less popular. For example, Washington, D.C.’s semi-forgotten Swampoodle neighborhood has done a 180 and become one of the most desirable and expensive areas to live in.
Stephanie Anton, president of Corcoran Affiliates, spends a lot of time thinking about luxury, and during her recent European vacation, she helped open a new Corcoran store in Spain and took the time to learn how the latest luxury trends are impacting the way homebuyers think about building their real estate portfolios.
“So I think there’s this concept of quiet luxury,” she said. “We keep hearing those stories, and it’s becoming more and more true. So I think affluent consumers think of their home as a haven. And it’s not about showing off, it’s about protecting the family and creating a bubble-like space.”
Anton will be speaking about quiet luxury and other emerging trends at Inman Luxury Connect in San Diego this July.
“I’m excited to hear stories outside of my box,” she said. “What I always love about Inman is meeting friends in the industry and hearing what they’re seeing and hearing and whether it’s any different, because I learn so much every time.”
The following conversation has been edited for length and clarity.
Inman: What are you most looking forward to at Luxury Connect this year?
Anton: I’m looking forward to hearing stories outside of my bubble. We were acquired by Compass International Holdings in January, and we’re focused on navigating that successfully. Normally I’m very connected to the industry, but right now I have a lot of work to do. I was busy with my day job.
I interviewed two other speakers last week, and they said the same thing about connecting with other leaders and unraveling the vortex we’ve been through this year. You mentioned the transition to Compass International Holdings. What did you think? That’s what everyone was paying attention to.
of course. So it’s still early days. I have to keep reminding myself that it’s only been 4 months and there has been a lot of focus on the corporate business. So, I don’t see much confusion when it comes to affiliate business. Most of the time, what we feel is an opportunity and what is going to happen. I think some of the technology will be available early next year, making it more tangible for franchisees.
I hear from my colleagues that Corcoran is company owned and franchised, but that’s not really the case. [different] in our daily life. Compass, like Anywhere, is a holding company. So I replaced it. But I think some great things will come down the pike.
We’ve done a lot of reporting on Compass’ technology, and I agree. It will be exciting to see how it unfolds. So let’s talk about what’s happening in the luxury space. Your session will be about evolving global wealth trends, what today’s luxury home buyers want, and how agents can proactively leverage those insights. What kinds of things are you seeing?
Well, it was interesting because I’ve been in the luxury real estate industry for 25 years and have always been very involved in research and the global side of the business. It’s funny, I was thinking about this and preparing to talk to you to say, “What are the trends?”
There is nothing earth-shaking new. But what’s interesting is that what’s been happening for five or 10 years is accelerating. And I think they are truer today than ever before. One of the reasons I love luxury goods is because they always guide us through difficult markets. More elastic. And that’s truer than ever.
So I was in Europe and I was in Italy for vacation. Then I went to Spain because I started an affiliate company there. I spent a lot of time talking to a lot of new people about what they were seeing and hearing. And there are a few things.
There’s this concept of quiet luxury, and we keep hearing about it, but it’s becoming more and more true. I think wealthy consumers consider their home a haven and are more focused on protecting their families and creating a bubble-like space than on showing off. A place where families are truly isolated.
You don’t necessarily need a masseuse to come in and give you a massage from time to time. It’s about having a dedicated space. It’s not about installing a lockless or keyless entry system in your home. That is, when you walk up to the front door, open the door and enter the house, all the lights turn on and the air conditioning automatically turns on. And it’s all about some kind of ease. It’s really next level.
With that in mind, I’m reminded of some extravagant stories I wrote in 2020 about how the pandemic promoted better health, so it’ll be interesting to see how that continues. I’d like to talk a little more about quiet luxury. I participate in conversations on social media about quiet luxury, but also about fashion.
It’s been interesting to see people pushing away monogrammed or overtly branded items in favor of more subdued styles. I can’t tell you how many Carolyn Bessette Kennedy-inspired videos I’ve watched this year. I remember when I was in my 20s the LV Neverfull was considered the beginning of aspirational luxury, but now I see people disrespecting the bag. So there is definitely a change happening. How does that affect real estate?
I think younger consumers are more interested in brands, but older consumers are not. They still want luxury brands. A year ago, I was wearing Neverfull and one of my interns said, “Oh my god, I want that.”
However, I think there is some level of fatigue. As we mature as luxury consumers, our needs change. I’m amazed at how much access these young kids have to money, go to great restaurants, and drive really nice cars. And this next generation will see a lot of money transferred over the next decade. That’s trillions of dollars. And that’s a big thing that’s driving this industry forward.
Parents are thinking about how to transfer their real estate to their children. And now there is a new generation of wealth, almost like in feudal England, where people are inheriting money to inherit real estate. That gives them a huge competitive advantage in today’s economy. It’s fascinating.
Well, it’s interesting to look at Gen Z. I’m a millennial, but the world of luxury was never on my radar, at least not as something that was easily available to me. I was happy with my Juicy Couture bag and Taco Bell.
Let me tell you, I was walking through Heathrow Airport last Thursday and there was a huge line at Taco Bell. And I thought, “Why would they do this for Taco Bell?” I think it was because it was an American thing. But it was a little scary.
I’ve been eating a lot more lately, but I can never go without Taco Bell. My co-workers always make fun of my obsession. But back to Gen Z, as they reach their prime homebuying years and begin building their own portfolios, how will this impact luxury real estate? How should agents adapt to this generation’s view of luxury?
I think one of the most interesting realities about this is that, yes, they are inheriting real estate wealth. But while this wealth shift is happening, many of them cannot afford to buy the housing that matters today. And the entry price for real estate is very high. So more than ever, parents and grandparents are seen helping their children and grandchildren.
So I think one of the ramifications of that is that they’re starting to look for homes that can accommodate their parents and grandparents in a way that we haven’t seen before in the country. In India, China, and other parts of the world, it was culturally common for people to take care of their parents and grandparents. That’s not really the case in America. But people are buying compounds now more than ever. One of the reasons is that her parents are helping her with the purchase.
Part of this has to do with the changing demographics of our society. Part of it is the reality of access to real estate. And frankly, stock is also limited. People have different ideas about homes.
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