The newest trend in multimillion-dollar real estate? TikTok home tours—and millennials are putting money behind their views.
Luxury real-estate agents are now creating short-form videos on the social-media app, giving watchers a look inside stunning high-end properties around the globe. Beside the appealing aesthetics, the tours are also capturing the attention of the next generation of high-end spenders, who are able to splash their cash and purchase a home, according to Fortune.
This trend is emerging during a time of economic slowdown in the US real-estate market, with an expected decrease of 6.5 percent in new-property sales and a predicted 13.1 percent drop in existing-home sales in 2023, according to Wells Fargo. This doesn’t appear to be deterring housing chatter on TikTok, though: If you search #property on the app, you’ll find the hashtag has garnered 3 billion views. Not to be outdone, #luxuryhomes has drawn a whooping 3.3 billion views.
Realtors say a combination of aspiration and escapism is pushing users to seek luxury-home content. But it’s not just fantasied fun. If the TikToks manage to go viral or find the right audience, agents are seeing the videos attract young, interested buyers more and more, who then look into purchasing the home. The short-form vids align with a similar trend of popular real-estate shows, such as Netflix’s Selling Sunset or Million Dollar Listing, that have grown massive fanbases, with viewers becoming captivated by lavish abodes with gorgeous verandas and an abundance of space.
“Luxury property tours are interesting to people either because they want to virtually look through the windows of a place or because they’re in the minority who would maybe buy it,” Toronto-based agent Andres Rivadeneira told Fortune. “I get a lot of calls about my properties from people living in high-value markets like London, New York, or Australia. The content around ‘This is how much you can get for your money here versus there’ is really interesting to people, and that drives a lot of engagement.”
Although Facebook remains the top source in driving traffic toward property listings, followed by Instagram, TikTok’s ability to reach a wider global audience offers realtors more opportunities to expand their audiences. The app also attracts a growing consumer base that are willing to turn their views into sales. According to Think Imapct, 37 percent of TikTok users have a disposable income of over $100,000 and were estimated to be spending about $500 million per quarter through the app, equaling $1.9 billion in 2021.
So if you’re in the market for a new manse, you now know exactly what app to check.
