Residential wellness real estate explodes in popularity

“Wellness real estate has been the fastest growing wellness sector in the United States in recent years,” asserts Ophelia Yun, senior research fellow at the Global Wellness Institute. This leading research resource for policy makers, analysts and writers on the international wellness industry recently published her 2024 report on the sector. Yun notes that while the report covers office, hospitality, mixed-use and other commercial categories, “growth in recent years has been driven by increased interest in wellness residential real estate.” .

Pandemic factors

“There is no question that the pandemic has given residential wellness real estate a huge boost,” Yang observes. She reported that the sector grew by 21.6% globally, even as domestic and international economies contracted. Researchers chalk that success up to the scientific recognition that our entire built environment either makes us sick or protects us. . “The pandemic has greatly increased our understanding of wellness and its many aspects, including healthy eating, exercise, mental health, sleep, nature, social connection, spirituality, and meaning,” she observed. , points out that consumers want to incorporate these features into their environments. She also points out that the amount of time people spent at home in the early months caused people to think about investing in homes in a new way.

Amanda Pendleton, housing trends expert at real estate platform Zillow, also sees the impact of the coronavirus as follows: “Real estate agents know what buyers are looking for and are highlighting certain wellness features more frequently as they are becoming increasingly desirable,” she points out.

“Zillow’s most recent analysis conducted in late 2023 showed a 32% increase in mentions of ‘wellness’ in product descriptions, with even greater increases in other wellness features,” she notes. Wellness features mentioned, including sensory gardens, increased by 314%. Mentions of cold plunge pools increased by 130%. Pickleball mentions increased by 64%, she added. Pendleton reported from her Zillow data that the five most common wellness amenities that appear in real estate listing descriptions are walking trails, fitness equipment, air filtration, and water. Filtration, jet bath.

housing investment

“A home is often the largest investment most households make, so it makes sense that it is also an investment in their health,” Yen comments. She points to her latest America At Home study, which showed health and wellness is the top feature homeowners want in their living spaces. “As wellness real estate grows faster than overall real estate construction, we expect its share of the real estate pie to increase,” she predicts.

Real estate professionals frequently cite “location, location, location” as an important factor in determining the appeal of a home. Health is also a factor, said Brandi Snowden, director of member and consumer research at the National Association of Realtors. Today’s home buyers aren’t just looking for good schools and low-crime neighborhoods.

“In the 2023 Home Buyer and Seller Profile Report, NAR asks recent buyers about the factors that influenced their choice of neighborhood. 23% of buyers said convenience to parks/recreational facilities 20% said it was influenced by walkability, 16% said it was influenced by convenience to medical facilities, and 8% said it was influenced by access to bike paths, all of which were indicative of wellness features around their home. Walkability was also on 49% of buyers’ wish lists, she added.

Warning about well washing

We’ve seen a lot of ‘well-washing’ promoting fake health promotions for all sorts of products, as well as fake sustainability claims to boost sales. Some are actually harmful to your health, while others are primarily harmful to your finances. Real estate is no exception. “I think the most egregious form of well-washing is the ‘tick-the-box’ approach in the development of health real estate,” he commented. He points out that he is looking for a way to add to the.

This is consistent with Pendleton’s take on a Zillow study that showed the word “healthy” had no effect on a product’s selling price or time to market, she said. However, certain health-promoting functions may have beneficial effects. “A home with a saltwater pool can sell for 1.5% more than expected,” she shares, “and a calming, spa-like bathroom can sell for 0.9% more than similar homes.” Masu. houses. Homes that are walkable can sell 2.2 days faster. ”

Buyers should be aware of how wellness claims can support their health, safety, and well-being, and whether the certifications being promoted are certified by an impartial third party outside of the real estate industry, such as the International WELL Building’s residential WELL. You should always consider whether the information is provided by a third-party organization. Institute.

Wellness for everyone

Like most housing-related elements, wellness real estate started at the luxury level and has been democratized into the mainstream in recent years. It’s a trend Yeung embraces. “Wellness designs and features that enable healthy lifestyles are widely used in a variety of markets, including multifamily housing, master-planned communities, senior housing, student housing, co-op housing, affordable housing, and rentals. I think we’ll see more market choices and variations over the next few years.”