Posted by Leonard Steinberg on October 29th, 2011
THE BIGGEST SOCIAL REVOLUTION EVER?
We are currently experiencing a dramatic societal shift, and in it lie superb clues to the future of our planet, and luxury real estate, a subject I am focused on. Here are the key trends:
Machines have replaced humans on a grand scale: Computerization has grown radically in the past 10 years. In real estate land the VIRTUAL DOORMAN is one example that now is considered mainstream.
Masses of manufacturing jobs and ‘phone jobs’ have been exported. Substantial volumes of high end building materials come from China, Italy, Germany and anywhere but the USA.
The rich’s wealth has grown radically, while the masses wealth has stagnated. The super-rich’s ability to defer and avoid taxes has left some even wealthier. As the ‘99%’ become more angry about this, luxury real estate may have to tone down it’s outer image more…..just like those simple looking coats lined with sable. Real estate is a very good way of displaying wealth to only those invited in, thereby avoiding the scrutiny and scorn of those who may only view it from the outside looking in.
American Society’s interest in detail has waned: superficial billboard-style headlines seem to suffice. The super-wealthy however are extremely detail-conscious when it comes to their real estate. The dumbing down of America may see a backlash when close analysis of the very wealthy shows that a big part of that success involves lots of detail.
The media thrives on chaos and accute extremes. They are all vying for our attention and the competition has exploded in the past few years with new media. The press loves nothing more than the extremes of real estate: celebrity, accute prices, massive price declines, massive price declines. Solid, useful information seems ineffective in captivating the mass audience. Niche media will have a strong future.
Success has to be achieved with great speed or it is deemed as failure. Quarterly evaluations of EVERYTHING without longterm strategy and patience and perseverence has faded. Election cycles do not help our governmental strategies either.
The speed at which super-luxury is translated into mass luxury is almost immediate. So some super luxury may become very secretive.
People are interacting significantly less on a personal level. We already see a bit of a revolt against this amongst the older generations….but young people may soon have tech ingrained into their bodies and minds….physically!
Women are out-pacing men on many levels, especially in the workplace. Women are getting richer and less reliant on men. Women are the major deciders in real estate land. They need to be addressed differently. Single rich women with big budgets will be buying real estate lots more in the future.
Rich men are becoming less reliant on women: the volume of pretty, smart, young girls in Manhattan is intimidating. And Viagra has helped older men perform…..with a thick wallet.
The number of married households is shrinking. Singles lifestyle is a new order not to be ignored.
The aging population is growing. But 60 is the new 50, and 70 is the new 55….these people have lots of money, experience and brainpower, and they are not slowing down. They are CHOOSING what they want to do now that they see fewer years ahead of them and they can afford to be selective with their time and purchases.
Long term promises of large benefits at the expense of lower salaries are being broken. We will all work longer, and we will all live longer. And we will all trust governments promises a lot less going forward. And latge corporations too.
All these shifts are happening FAST. Luxury marketers and makers need to adapt as quickly. And that means…. a Sub Zero alone doth not a luxury home maketh!