Hurrah for HENRYs

The most successful real estate professionals are the ones who can stay one step ahead of new developments. In the ever-changing luxury real estate market, this emerging segment of buyers are known as HENRYs.

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 age 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 recognised 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, in the market for luxury homes.

Selling to HENRYs: Tips for success

There are a few aspects to keep in mind when working with HENRY buyers. Don’t expect to use the same techniques and strategies with your more “traditional” audience of affluent and high-net-worth individuals.

Understand the audience and what matters to them

First and foremost, take some time to familiarise 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.

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.

Take location seriously

Location is another important factor to consider when selling to a HENRY buyer. More than ever, this group of buyers is prioritising 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 favourite amenities.

Utilise 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. Incorporate influencer marketing into a listed property to capture the attention of this unique market.

Hold an exclusive event on the property

To draw in an audience of potential HENRY buyers, consider hosting 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 to permit HENRYs to experience and see the luxury lifestyle that the property has to offer first-hand.

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