The luxury real estate market is ever-changing—and the most successful real estate professionals are the ones who can stay one step ahead of new developments. If you’re looking to grow your own sphere of influence in the luxury market, you should be aware of an emerging segment of buyers known as HENRYs. By understanding this group and how to properly market to them, you’ll be on your way to more sales and a larger client base.
What Are HENRYs, Anyway?
In the world of real estate HENRY stands for “High Earners, Not Rich Yet.” This refers specifically to individuals or households that are typically in the upper-middle to high-income brackets but have not yet accumulated enough wealth or assets to be considered affluent.
In general, HENRYs tend to be an average of 43 years old with an income of $100,000—along with investable assets of less than $1 million.
Why HENRYs Matter in Luxury Real Estate
In the past, the luxury real estate market has been dominated by affluent individuals. However, a 2019 report by Deloitte has recognized HENRYs as a whole new market for luxury real estate. Largely millennials and members of “Generation Z,” HENRYs are in a position to become some of the most affluent members of society down the road—and they’re already in the market for luxury homes.
Selling to HENRYs: Tips For Success
If you’re a luxury real estate professional looking to cash in this new opportunity, there are some things you need to keep in mind as you begin working with HENRY buyers. You can’t expect to use the same techniques and strategies that you use with your more “traditional” audience of affluent and high net worth individuals.
1. Understand the Audience and What Matters to Them
First and foremost, take some time to familiarize yourself with the lifestyle aspirations and values of HENRY buyers. These are buyers who value the luxury lifestyle and expect their properties to align with their aspirations. They are not in the market to make compromises, and they typically won’t make an offer unless they’ve found the “perfect” property. With this in mind, luxury real estate professionals should be prepared to do a lot of research to find properties that suit their clients’ needs.
2. Focus on Value and ROI
Furthermore, real estate professionals should be prepared to emphasize the value and return on investment (ROI) of a luxury property. While HENRYs do have relatively high incomes, they are still very conscious of their financial investments and want to make smart decisions that will pay off in the long run. This is where taking the time to highlight the long-term value and return on a luxury property investment can make all the difference in swaying a HENRY’s buying decision.
3. Take Location Seriously
Location is another important factor to consider when selling to a HENRY buyer. More than ever, this group of buyers is prioritizing location and convenience over just about everything else. This means that they are looking for properties that not only check off every item on their list of must-haves, but are centrally located near their workplaces, social activities, and favorite amenities.
4. Utilize the Right Marketing Channels and Strategies
Social proof and influencer marketing can also go a long way when marketing to the HENRY audience. As millennials and members of Generation Z, these buyers often follow influencers on social media and take luxury lifestyle trends seriously. If you’re able to incorporate influencer marketing into a property that you’ve listed, you can capture the attention of this unique market in ways that you otherwise wouldn’t be able to.
5. Hold an Exclusive Event on the Property
Last but not least, consider hosting some exclusive events that will draw in an audience of potential HENRY buyers. This may mean organizing exclusive events or private property tours to create a sense of exclusivity. You might even send out a limited number of invitations to your event rather than hosting a traditional open house. When done correctly, these events can allow HENRYs to experience and see the luxury lifestyle that the property has to offer first-hand.
Looking For More Industry Insights?
In the coming years, it is inevitable that we will continue to see this emerging market of HENRY buyers purchase more luxury homes. Don’t miss out on this growing market!
Take the time now to familiarize yourself with this new segment of buyers. Build relationships with them and offer them the personalized level of service that they need to find the luxury properties that are right for them.
In doing so, you’ll be building a name for yourself while setting your brand up for future success and growth.
Keeping up with the latest industry news isn’t always easy, but it’s crucial to maintaining a competitive edge in the luxury market. By joining the Institute for Luxury Home Marketing (ILHM), you’ll gain access to the latest industry insights and news from trusted and experienced professionals.
Reach out to our team to learn more about what our membership has to offer!