Habits of the Wealthy: How Residential Preferences Have Evolved Over Time

Habits of the Wealthy: How Residential Preferences Have Evolved Over Time

The residential habits of the wealthy have shifted dramatically since the early 20th century. Douglas Elliman’s observation in 1936 highlighted the transition of wealthy New Yorkers from private houses to apartments, marking a significant lifestyle change that made living and moving simpler for affluent individuals. This trend has continued to evolve, influenced by economic, social, and technological changes, with the COVID-19 pandemic serving as a recent catalyst for even further transformations.

Historical Context and Early Changes

In the early 1900s, most of New York’s wealthy population resided in private houses. However, by the mid-1930s, the majority had moved into apartments, reflecting a broader shift towards urbanization and a preference for convenience. The advent of high-rise living offered many advantages, including reduced maintenance, increased security, and proximity to cultural and social hubs. This shift made moving between multiple homes—city apartments, suburban estates, and country homes—more manageable, with less reliance on large staffs and extensive resources.

The Shift to Urban Apartments in the Early 20th Century

The early 20th century marked a pivotal shift in the residential habits of the wealthy. By 1911, Douglas Elliman observed that 90% of New York’s wealthy population lived in private houses. However, this trend began to reverse by the 1920s and 1930s as affluent families moved into urban apartments. This change was driven by several factors:

1. Economic Changes: The Great Depression of the 1930s forced many wealthy families to downsize their estates, making urban apartments a more practical and economical choice.

2. Urbanization and Modernization: The growth of urban centers and advancements in infrastructure made city living more attractive. High-rise apartments offered luxury amenities, security, and convenience, reducing the need for large staffs and the maintenance associated with private homes.

3. Social Changes: The lifestyle of the wealthy began to shift from a display of static wealth to one of mobility and access to cultural and social activities. Urban apartments in cities like New York allowed affluent individuals to be closer to theaters, restaurants, and social clubs, reflecting a more dynamic lifestyle.

Douglas Elliman himself noted in 1936 that the habits of the wealthy had shifted significantly, with apartment life making both living and moving simpler for them. The lock-and-leave convenience of apartments appealed to a new generation of affluent city dwellers, who were less tied to a single grand estate and more interested in the flexibility and ease of urban living.

Post-World War II and the Suburban Boom

After World War II, there was a significant migration of wealthier families from urban centers to the suburbs. The post-war economic boom and the development of suburban communities offered the affluent a new residential option: large homes with more privacy and space than urban apartments but without the complexity of maintaining a city estate. This suburban migration was characterized by:

1. Suburban Expansion: Developers created exclusive suburban enclaves with amenities like golf courses, private schools, and country clubs, catering to the desires of the wealthy for privacy and exclusivity.

2. Automobile Culture: The rise of the automobile made commuting to the city for work feasible, allowing the wealthy to maintain urban connections while enjoying suburban tranquility.

3. Family-Centric Living: Suburban homes with large lawns and proximity to nature offered a more family-friendly environment, which became a priority for post-war affluent families.

The Rise of the Second Home in the Late 20th Century

As the economy continued to grow in the latter half of the 20th century, the concept of owning multiple properties became more prevalent among the wealthy. The affluent increasingly invested in second homes—whether as vacation properties in exclusive locales like the Hamptons or as pied-à-terre in cities like Paris or London.

1. Luxury Vacation Homes: Wealthy individuals began to view real estate as a form of investment and lifestyle enhancement. Luxury vacation homes in destinations like Aspen, St. Barts, and the French Riviera became status symbols, reflecting not just wealth but also a lifestyle of leisure and exclusivity.

2. Pied-à-Terre in Global Cities: As the global economy became more interconnected, affluent individuals sought homes in multiple cities to facilitate business and leisure travel. This trend was particularly notable among high-net-worth individuals in finance, fashion, and entertainment, who required residences in major economic and cultural hubs.

3. Gated Communities: The rise of gated communities in both suburban and urban settings provided the wealthy with a new way to combine privacy, security, and community. These enclaves often featured private amenities like golf courses, spas, and dining facilities, further catering to the exclusive tastes of their residents.

Post-2000: Urban Renaissance and the Return to Cities

The early 2000s saw a renewed interest in urban living among the wealthy. Cities like New York, San Francisco, and London experienced a real estate boom as affluent individuals sought high-rise apartments with luxury amenities. This trend was driven by several factors:

1. Luxury Condominiums: The development of luxury condominiums with top-notch amenities such as concierge services, private gyms, and spa facilities attracted wealthy buyers. Buildings like New York’s 432 Park Avenue and London’s One Hyde Park became iconic representations of modern luxury living.

2. Cultural and Social Amenities: Cities offered unparalleled access to cultural events, dining, and entertainment. The wealthy were drawn to neighborhoods that provided a blend of historic charm and modern convenience, such as Manhattan’s Upper East Side or London’s Mayfair.

3. Global Connectivity: As global travel became more accessible, having a residence in multiple cities became a necessity for many wealthy individuals who needed to move seamlessly between business and leisure destinations.

Post-Pandemic Shifts and the Future

The COVID-19 pandemic significantly impacted the residential habits of the wealthy. With remote work becoming the norm, many affluent individuals re-evaluated their living situations, leading to new trends that are likely to shape the future of luxury real estate:

1. Rural and Suburban Escapes: The pandemic sparked a renewed interest in rural and suburban properties. Wealthy buyers sought larger homes with more outdoor space, privacy, and amenities like home offices, gyms, and entertainment rooms. Suburban markets saw unprecedented demand, with affluent families investing in properties that could serve as both primary residences and remote workspaces.

2. Home as a Multi-Functional Space: The concept of the home has evolved from being just a place to live to a multi-functional space for work, leisure, and family life. Features like home offices, wellness facilities, and outdoor living spaces have become increasingly important for wealthy buyers.

3. Sustainable and Smart Homes: There is a growing demand for sustainable luxury properties that incorporate eco-friendly materials and technologies. Smart home systems that offer enhanced security, convenience, and energy efficiency are also becoming standard features in high-end real estate.

4. The Rise of Branded Residences: Properties associated with luxury brands, such as Four Seasons or Ritz-Carlton Residences, offer the wealthy a unique combination of high-quality amenities, services, and brand prestige. These developments often provide a seamless lifestyle experience, combining the convenience of hotel living with the privacy of home ownership.

The Shift to Urban Apartments in the Early 20th Century

The early 20th century marked a pivotal shift in the residential habits of the wealthy. By 1911, Douglas Elliman observed that 90% of New York’s wealthy population lived in private houses. However, this trend began to reverse by the 1920s and 1930s as affluent families moved into urban apartments. This change was driven by several factors:

1. Economic Changes: The Great Depression of the 1930s forced many wealthy families to downsize their estates, making urban apartments a more practical and economical choice.

2. Urbanization and Modernization: The growth of urban centers and advancements in infrastructure made city living more attractive. High-rise apartments offered luxury amenities, security, and convenience, reducing the need for large staffs and the maintenance associated with private homes.

3. Social Changes: The lifestyle of the wealthy began to shift from a display of static wealth to one of mobility and access to cultural and social activities. Urban apartments in cities like New York allowed affluent individuals to be closer to theaters, restaurants, and social clubs, reflecting a more dynamic lifestyle.

Douglas Elliman himself noted in 1936 that the habits of the wealthy had shifted significantly, with apartment life making both living and moving simpler for them. The lock-and-leave convenience of apartments appealed to a new generation of affluent city dwellers, who were less tied to a single grand estate and more interested in the flexibility and ease of urban living.

Post-World War II and the Suburban Boom

After World War II, there was a significant migration of wealthier families from urban centers to the suburbs. The post-war economic boom and the development of suburban communities offered the affluent a new residential option: large homes with more privacy and space than urban apartments but without the complexity of maintaining a city estate. This suburban migration was characterized by:

1. Suburban Expansion: Developers created exclusive suburban enclaves with amenities like golf courses, private schools, and country clubs, catering to the desires of the wealthy for privacy and exclusivity.

2. Automobile Culture: The rise of the automobile made commuting to the city for work feasible, allowing the wealthy to maintain urban connections while enjoying suburban tranquility.

3. Family-Centric Living: Suburban homes with large lawns and proximity to nature offered a more family-friendly environment, which became a priority for post-war affluent families.

The Rise of the Second Home in the Late 20th Century

As the economy continued to grow in the latter half of the 20th century, the concept of owning multiple properties became more prevalent among the wealthy. The affluent increasingly invested in second homes—whether as vacation properties in exclusive locales like the Hamptons or as pied-à-terre in cities like Paris or London.

1. Luxury Vacation Homes: Wealthy individuals began to view real estate as a form of investment and lifestyle enhancement. Luxury vacation homes in destinations like Aspen, St. Barts, and the French Riviera became status symbols, reflecting not just wealth but also a lifestyle of leisure and exclusivity.

2. Pied-à-Terre in Global Cities: As the global economy became more interconnected, affluent individuals sought homes in multiple cities to facilitate business and leisure travel. This trend was particularly notable among high-net-worth individuals in finance, fashion, and entertainment, who required residences in major economic and cultural hubs.

3. Gated Communities: The rise of gated communities in both suburban and urban settings provided the wealthy with a new way to combine privacy, security, and community. These enclaves often featured private amenities like golf courses, spas, and dining facilities, further catering to the exclusive tastes of their residents.

Post-2000: Urban Renaissance and the Return to Cities

The early 2000s saw a renewed interest in urban living among the wealthy. Cities like New York, San Francisco, and London experienced a real estate boom as affluent individuals sought high-rise apartments with luxury amenities. This trend was driven by several factors:

1. Luxury Condominiums: The development of luxury condominiums with top-notch amenities such as concierge services, private gyms, and spa facilities attracted wealthy buyers. Buildings like New York’s 432 Park Avenue and London’s One Hyde Park became iconic representations of modern luxury living.

2. Cultural and Social Amenities: Cities offered unparalleled access to cultural events, dining, and entertainment. The wealthy were drawn to neighborhoods that provided a blend of historic charm and modern convenience, such as Manhattan’s Upper East Side or London’s Mayfair.

3. Global Connectivity: As global travel became more accessible, having a residence in multiple cities became a necessity for many wealthy individuals who needed to move seamlessly between business and leisure destinations.

Post-Pandemic Shifts and the Future

The COVID-19 pandemic significantly impacted the residential habits of the wealthy. With remote work becoming the norm, many affluent individuals re-evaluated their living situations, leading to new trends that are likely to shape the future of luxury real estate:

1. Rural and Suburban Escapes: The pandemic sparked a renewed interest in rural and suburban properties. Wealthy buyers sought larger homes with more outdoor space, privacy, and amenities like home offices, gyms, and entertainment rooms. Suburban markets saw unprecedented demand, with affluent families investing in properties that could serve as both primary residences and remote workspaces.

2. Home as a Multi-Functional Space: The concept of the home has evolved from being just a place to live to a multi-functional space for work, leisure, and family life. Features like home offices, wellness facilities, and outdoor living spaces have become increasingly important for wealthy buyers.

3. Sustainable and Smart Homes: There is a growing demand for sustainable luxury properties that incorporate eco-friendly materials and technologies. Smart home systems that offer enhanced security, convenience, and energy efficiency are also becoming standard features in high-end real estate.

4. The Rise of Branded Residences: Properties associated with luxury brands, such as Four Seasons or Ritz-Carlton Residences, offer the wealthy a unique combination of high-quality amenities, services, and brand prestige. These developments often provide a seamless lifestyle experience, combining the convenience of hotel living with the privacy of home ownership.

Post-Pandemic Shifts: Suburbanization and Flexibility

The COVID-19 pandemic marked a new era in the residential preferences of the wealthy. The initial lockdowns and subsequent remote work trends led to a significant migration from urban centers to suburban and rural areas. Many affluent individuals sought larger homes with more outdoor space and privacy, away from the density of city life. Suburban real estate markets saw a surge in demand, while urban property values stagnated or declined, especially in cities like New York and San Francisco.

During the pandemic, suburban and rural property values increased significantly, particularly in areas like upstate New York, Long Island, and parts of New Jersey. This trend was driven by the desire for more space and the flexibility to work from home. Interestingly, while urban markets in established metros like Boston and D.C. experienced price drops, suburban markets flourished. In contrast, cities in the Rust Belt, such as Cleveland and Detroit, saw increases in urban property values, possibly due to lower baseline prices and renewed interest in urban revitalization.

Modern Residential Trends and Preferences

Post-pandemic, the wealthy continue to prioritize flexibility in their residential choices. Many now own multiple properties, with a mix of city apartments, suburban homes, and international residences. The rise of luxury time-shares and branded residences has also become popular, allowing the wealthy to enjoy the benefits of multiple high-end properties without the hassle of ownership.

**1. ** Parking and Transportation: With the increase in multi-property ownership, the logistics of car storage have also evolved. Private parking garages, once a luxury, are now a necessity in densely populated urban centers. Suburban and rural estates often include extensive parking facilities, accommodating multiple vehicles, including luxury cars, boats, and even private aircraft. In cities, some high-end apartment buildings now offer private car services or valet parking as standard amenities, reducing the need for personal vehicle ownership.

**2. ** Home Styles and Design: Wealthy individuals today are more likely to invest in properties that offer customization and exclusivity. This includes penthouses in city skyscrapers, sprawling suburban estates, and architecturally significant homes that reflect personal taste and status. There is also a growing trend towards sustainable and smart home technologies, which offer both environmental benefits and enhanced convenience.

**3. ** Location and Lifestyle Choices: The wealthy are increasingly choosing homes based on lifestyle preferences rather than just status. Locations that offer a balance between urban excitement and suburban tranquility, such as Westchester County near New York City or Marin County near San Francisco, have seen increased demand. Internationally, locations like Dubai, Singapore, and Monaco continue to attract affluent buyers due to their favorable tax environments and high-quality amenities.

Future Trends in Residential Habits

Looking forward, the residential habits of the wealthy are likely to continue evolving in response to global economic and environmental trends. With the ongoing rise of remote work, the demand for flexible living arrangements and multi-use properties will likely grow. We may also see an increase in luxury co-living spaces, which offer the benefits of community and convenience without the constraints of traditional homeownership.

Sustainability will play a significant role in the future of luxury real estate. Wealthy buyers are increasingly seeking homes that incorporate sustainable building practices, energy-efficient technologies, and materials that reduce environmental impact. This trend is expected to continue as awareness of climate change and environmental responsibility grows among affluent individuals.

In conclusion, the residential habits of the wealthy have undergone significant transformations over the past century, influenced by changing social norms, economic conditions, and technological advancements. The COVID-19 pandemic accelerated many of these trends, pushing the wealthy towards greater flexibility and diversification in their living arrangements. As we move into the future, these habits will continue to evolve, shaped by new innovations and shifting global dynamics.