Generational wealth transfer in real estate is poised to be among the most significant shifts in luxury property markets over the next decade, as Generation X and millennials stand to inherit unprecedented holdings. A recent Wall Street Journal report based on the Coldwell Banker Global Luxury trend analysis highlights the scale and early signs of this transition, showing how affluent families are preparing for the change now.
The core finding from the industry report is that roughly $4.6 trillion in real estate globally will be transferred to Gen X and millennial heirs in the next ten years, with nearly $2.4 trillion of that value tied to properties in the United States. Wealthy baby boomers and older high-net-worth individuals often hold sizeable residential portfolios, and the unfolding succession is shifting patterns of luxury home transactions.
This generational shift is already visible in the behaviour of luxury buyers and sellers. Brokers and family office advisers report that discussions about inheritance and estate planning are occurring far earlier than in previous cycles. Some parents are choosing to purchase high-end properties directly for their children while they are still alive, often employing trusts or limited liability companies to manage tax exposure or provide flexibility for future changes in location or lifestyle. In places such as Manhattan and South Florida, such practices are gaining traction, with younger buyers making preferences known on design, location and property type.
Real estate professionals also note changes in the kinds of properties that attract interest. Condominiums with flexible ownership and rental potential are increasingly prominent among intergenerational transfers, contrasting with older preferences for co-ops in traditional luxury enclaves. The trend is influencing inventory flows, with some legacy estates entering the market as younger heirs opt for more manageable or liquid assets.
