THE WEEK IN REVIEW

Welcome to my weekly newsletter featuring a personal note on the ever-evolving world of real estate along with a few newsworthy updates. Enjoy!

december TO MAY HOUSES

You may be familiar with the term "December to May" romance - a relationship with a significant age gap where one partner is much older than the other. "May" represents youth and "December" represents old age.

I've been thinking about this metaphor as it relates to houses. All of a sudden it seems that my "empty nester" buyers (December) and my younger home buyers (May) are falling in love with the same things. Turns out need a lot more December to May houses!

Many of my downsizing clients simply want a smaller, more condensed, easier to manage version of their larger home - and presumably with a smaller operating cost that allows them perhaps a second home, or a more generous travel budget. Their ideal home won't force compromise on the important stuff - AND just happens to have the same amenities sought by my younger buyers.

1. WALKABILITY - Young families don't want to be beholden to a car for every coffee run or casual dinner out; turns out neither do empty nesters who are often returning to a more urban lifestyle after raising a family in the suburbs.

2. A GREAT PRIMARY SUITE - Both groups want closet and bathroom space that feels scaled similarly to a much larger home.

3.  OPEN CONCEPT LIVING - Space to entertain, including a dining room large enough to entertain family and friends for special occasions. Empty nesters want to host grown children and grandchildren. Younger buyers want to be able to host Thanksgiving and/or game watch parties with their friends.

4.  A KITCHEN WITHOUT COMPROMISE - Preferably with an eat-in breakfast area. And of particular interest is a scullery/prep kitchen for the messy stuff for their ideal kitchen, which is most certainly open to living space.

5.  SOME OUTDOOR SPACE - Empty nesters and younger buyers alike want enough outdoor space to entertain and kick a ball, but not too much. Empty nesters are over the maintenance; and the budgets of younger buyers prioritize convenience and access over lots of property.

6.  A MAIN LEVEL BEDROOM - Older buyers want to avoid stairs; younger buyers are thinking about hosting older family members and love the idea of a main level bedroom suite that works as a home office. Older buyers want additional bedrooms on the upper level to expand into as needed.

7. RENOVATED - Everyone is "open to a project" until they start looking - young and old alike get depressed by the time and energy required of large scale renovation.

8. NATURAL LIGHT - It's one of the first "must haves" on every Buyer list, no matter the age.

9. EASY FLOW BETWEEN INDOORS AND OUTDOORS - A single door to the back yard can be a deal breaker for both buyer sets. Easy access is the name of the game. French and "accordion-style" doors are high value amenities.

10. GRACIOUSNESS AND SCALE (in fewer rooms): Empty nesters want the scale reminiscent of their prior "BIG" home, younger buyers tend toward a more open and less formal floor plan organized around fewer, larger rooms.

Those downsizing in their 50's, 60's and 70's aren't slowing down. They're just changing gears and priorities. A huge home can start to feel like a job, but they aren't ready for a small, starter home or condo. These "goldilocks" homes - generally not exceeding 5000 SF - provide empty nesters with a newfound freedom. And it just so happens that younger buyers busy with careers and young children are prioritizing the same things.

real estate & the news

• M&A Transactions of $10 billion or more - mega-deals -  have hit an all-time record in 2025....the highest since 2015 at 63.  For a $10 billion M&A deal, investment bank fees typically range from 0.15% to 0.23% of the transaction value, or between $15 million and $23 million.....expect a robust bonus season! (FT)

• Switzerland will hold a referendum to raise taxes on the ultra rich, mostly a 50% tax on inheritance of 50 million Swiss francs or more.... Its 300 wealthiest residents are worth a combined 850 billion Swiss Francs, or just over $1 trillion, significantly less than the top 300 Americans. The combined 300 wealthiest Americans are worth over $6 trillion! (CNBC)

• Economists at the University of Chicago and Northwestern University used detailed data on the card transactions, wealth and attitudes of Americans to demonstrate that reduced work effort, increased leisure spending and investment in risky financial assets (including crypto) are all disproportionately common among young adults who face little to no realistic prospect of being able to afford a house. Other research shows those for whom home ownership is a more realistic possibility in the medium term, or who have already attained it, take fewer risks and strive harder at work. (FT)

around dc

THE NUTCRACKER

THE WASHINGTON BALLET

DC's favorite ballet company pulls out all the stops for this classic Christmas tale that features a special DC twist. The Russian ballet goes local thanks to a Nutcracker Prince in the likeness of George Washington and cherry blossom set designs. Set in historical 1882 Georgetown, you will be dazzled by an impressive roster of dancers and the beautiful Tchaikovsky score. This year marks the 20th anniversary of this quintessential program that is a highlight of every holiday season in the District. Ticket information here.

Lee Arrowood

Principal, Arrowood Advisory at Compass

M: 202.251.3175

O: 202.448.9002

lee.arrowood@compass.com

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