The real estate market has suffered significantly over the past several years, especially around Southern California in areas like Montecito and Santa Barbara. However, there is a lot of movement in the high-end real estate market and this is not because of the baby boomers.
While the baby boomers do make up a majority of the population that owns high-end homes, they are not the only ones buying. There has been a recent trend where younger generations are skipping the idea of a starter home and going right to the higher-end markets.
There are many reasons for this trend. Some of it has to do with lower interest rates and lower real estate prices but some of it also has to do with the stock market when the younger generation started working. They bought stock early and they sold when needed. They made smart decisions and now the 25-34 crowd is shopping for the higher-end homes.
More luxury neighborhoods are seeing younger neighbors as a result of this trend.