Who Are the HENRYs? The High-Earning Gen Z and Millennials Redefining Luxury Real Estate

A niche subset of Gen Z and younger millennials is entering the housing market earlier than previous generations—and it's reshaping how luxury is defined and valued across the nation.

The real estate firm Engel & Völkers recently issued a report about the next generation of luxury homebuyers it's calling "HENRYs," short for "high earners, not rich yet."

This acronym describes a niche subset of younger homebuyers who have an annual household income of more than $100,000, effectively representing the next generation of wealth. As a demographic, HENRYs possess strong disposable income, aspirational purchasing power, and an outsized influence on emerging trends in real estate and luxury markets.

"This influential group is entering the market earlier than previous generations, prioritizing homeownership as both a financial milestone and a reflection of their identity," Katelyn Castellano, chief marketing and performance officer for Engel & Völkers, writes. "Their preferences are reshaping how luxury is defined, valued, and experienced across North America."

Homeownership and HENRYs

According to Engel & Völkers, HENRYs place extraordinary importance on homeownership, viewing it not only as a financial milestone but also as a defining symbol of success and lifestyle.

In fact, 86% of HENRYs say owning a home is important to achieving the American dream.

"It’s easy to buy into the broader narrative that younger millennials and Gen Z have given up on homeownership in favor of travel and experiences," says Gene Morrello, an Engel & Völkers real estate adviser in Park City, UT.

"However, the high level of activity we see from HENRYs in the housing market proves there is a strong counterculture prioritizing real estate. Currently, HENRYs make up more than half of my active buyer clients, and I fully expect this trend to continue."

But Engel & Völkers notes that HENRYs are not the luxury homebuyers of tomorrow—they are actively driving the market today.

At least 76% of HENRYs currently own a home, and 86% of those homeowners purchased before age 30. And 95% of HENRY renters plan to purchase a home before turning 40.

"In my experience, many HENRYs are ready, willing, and able to purchase and will move forward if they can find properties that fit their needs and values," says Morrello.

Historic wealth transfer is boosting HENRY buyers

Morrello says this new cohort of HENRYs exists amid the largest ever generational transfer of wealth.

An estimated $124 trillion will transfer intergenerationally through 2048, mainly from the Silent Generation (born 1928–45) and baby boomers (born 1946–64) to the younger generations, including Gen X, millennials, Gen Z, and Gen Alpha, according to a report by Cerulli Associates, a wealth research and consulting firm.

Of that enormous figure, $25 trillion will be put into real estate, according to Federal Reserve data, reports Sotheby’s International Realty.

"Many HENRYs are already benefiting from this generational wealth transfer," says Morrello. "In fact, I’ve worked with several clients who were able to increase their price range with significant financial support from their families. They're coming to the table with down payments bolstered by parents or grandparents."

HENRYs also prioritize saving and long-term planning, with 77% putting away $1,500 or more each month.

"I’ve worked with several HENRYs who saved and invested for years while renting, ultimately choosing to buy a second home in Park City before even purchasing a primary residence in their home market," says Morrello.

Morrello says that kind of financial discipline is often what makes these purchases possible.

"Given that many property values in the Park City area have doubled since 2020, they simply couldn’t be players in this market without strict discipline and high savings rates," says Morrello. "By the time they’ve saved enough to shop in Park City, they’ve deliberately skipped a few extra trips to Coachella or designer purchases. They have a long-term focus and view housing as a foundational investment in their future."

How HENRYs define luxury

According to the report, HENRYs choose ownership over access when it comes to luxury and lifestyle.

More than two-thirds of HENRYs say that they favor owning luxury items over relying on experiences, rentals, or subscription-based models.

Homeownership remains the ultimate marker of luxury for HENRYs, surpassing traditional symbols such as fashion, travel, or services.

For this generation, the No. 1 indicator of luxury is owning a home that reflects their lifestyle, reinforcing the idea that real estate is not just a financial milestone but a personal expression of identity and success as well.

More than a third of HENRYs bypass a starter home and opt to buy a dream home that reflects their lifestyle as their very first property.

"For HENRYs, a home is a central part of their lifestyle and the ultimate reflection of their personal brand and values," says Morrello.

"Many gravitate toward smaller properties with highly curated aesthetic details rather than traditional, opulent megamansions. It’s not just a roof over their heads or a typical financial asset; it’s a direct extension of who they are and what they aspire to be."