Meet the HENRY’s: The Next Generation Shaping Luxury Real Estate

By Melissa Dittmann Tracey

Known as HENRYs—short for High Earners, Not Rich Yet—this group of millennials and Gen Z professionals are emerging as a powerful force in the luxury housing market.

In the newly released report, “The New HENRYs: How the Next Generation Is Shaping Luxury Real Estate,” Engel & Volkers examines how high-income younger buyers are entering the market early, redefining luxury and shaping trends across the country.

HENRYs are defined as consumers born between 1990 and 2003 with household incomes above $100,000. Unlike many of their peers, they are entering homeownership early: 76% already own a home—with the majority prior to age 30. Ninety-five percent of those surveyed who currently rent expect to buy a home before age 40. That stands in contrast to the broader U.S. population, where the median age of first-time buyers rose to 40 last year, according to the National Association of REALTORS^®.

“As we face the largest transfer of wealth ever between generations, HENRYs are already shaping the luxury real estate market in North America,” says Katelyn Castellano, chief marketing and performance officer at Engel & Volkers Americas. “They are financially disciplined and approach homeownership not only as a symbol of success, but as an extension of their identity. As a result, they are redefining luxury around ownership, quality and long-term value.”

Homeownership as the Ultimate Luxury

For HENRYs, owning a home remains a key symbol of success. The report finds that 86% say homeownership is “very” or “extremely” important to achieving the American Dream—ranking higher than traditional luxury makers like fashion, travel or services.

Many are skipping the traditional path of purchasing a “starter home” first. Instead, more than one-third say their first purchase is their dream home, reflecting their strong purchasing power and early start to luxury living.

When asked about their top long-term financial goals, HENRYs ranked:

1. Owning a home
2. Achieving financial independence
3. Becoming debt-free

A Financially Disciplined Group

Despite perceptions that younger buyers tend to prioritize experiences over assets, HENRYs are financially conservative and future-focused.

About 77% save $1,500 or more per month.

Their most-preferred savings vehicles tend to mirror older generations:

1. 401(k) retirement accounts
2. Stocks and mutual funds
3. High-yield savings account

How HENRYs Define Luxury & Their Dream Home

HENRYs favor ownership over just access to luxury goods and services. About 67% say they prefer owning luxury items, compared to 33% who favor rentals, experiences or subscription-based access.

Quality, strong brand reputation and long-term value are the top factors they associate with luxury brands. For example, when choosing luxury brands, their top considerations are:

1. Quality reputation
2. Familiarity with the brand
3. Recommendations from friends or family
4. Legacy or historical value

When it comes to their “dream home,” they prioritize lifestyle-oriented home features, including:

• Private recreational amenities
• Waterfront properties
• Ranch or equestrian properties
• Mountain access
• Vineyards

HENRYs are entering the market earlier, purchasing at higher price points and viewing their homes as both an investment and a reflection of their lifestyle. Understanding their financial discipline, ownership preferences and luxury expectations may help real estate professionals better engage with this influential generation of luxury buyers.

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