In partnership with Engel & Völkers Americas, we surveyed 1,003 respondents who fit into the category of High Earners Not Rich Yet (HENRY) between the period of September 7 to September 17, 2018, to get a better understanding of how they define luxury, the key factors that influence their purchasing decisions, and how brands, specifically real estate professionals, can reach them as the gatekeepers of tomorrow’s wealth. Our study found the following:
- For HENRYs, luxury isn’t necessarily tied to price point.
- In defining the characteristics that make a brand luxury, 80% of respondents cite superior quality and 64% cite excellent reputation/word of mouth, while only 47% cite premium price
- When it comes to real estate specifically, only 38% of HENRYs consider sales price to be an indicator of a luxury home or property
- The top three indicators of a luxury home or property as identified by HENRYs are finishes (68%); neighborhood/location (64%); and amenities (57%)
- Social media influencers are extremely important in reaching HENRY buyers.
- 67% of respondents follow influencers on social media; 58% follow influencers to learn about new products and ideas
- Topic experts are the most followed category of influencers among HENRYs (65%), surpassing even celebrities
- 84% of HENRYs say that influencers have impacted their decision to make a purchase, and 80% would consider hiring an influencer for their specific expertise, e.g., a fitness instructor, real estate agent, or interior designer
- Overall, 98% of HENRYs rely on social media or a review-based website when choosing a service provider
- When choosing a real estate agent specifically, the three most important factors cited by HENRYs are referrals from friends and family (59%); reputation in the local neighborhood (53%); and local neighborhood expertise (50%)
Read more at Engel & Völkers Real Estate.