Compared to 2019, the volume of luxury single-family homes purchased from January through August 2021 has increased +142% and +129% for attached properties.
Rising Wealth Growth A Boon for Luxury Real Estate Market
According to a recent report released by Coldwell Banker Real Estate and its Coldwell Banker Global Luxury Program, there are “new power players” in the luxury market’s swell over the last 18 months.
This swell in luxury real estate has resulted in an increase of luxury homes priced between $1M to $5M of +142% and +129% for luxury attached properties from January through August 2021 compared to 2019.
Likewise, the number of people with a net worth of $5M+ who also own real estate in the price range of $1M – $5M has jumped +180% over three years, according to Coldwell Banker. Judy Zeder, co-founder and broker-associate with The Jills Zeder Group with Coldwell Banker Realty, said, “The emergence of new ‘Power Players’ flush with cash has been transformative in many markets around the country as affluent buyers flocked to sleepy rural towns, resort markets, and the suburbs, and are now contributing to the resurgence of major cities.”
Who are these “power players?”
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Boomers
Boomers ages 57 – 75 account for 51% of the new power players. They are retiring, leveraging the equity in their primary residences and buying homes in more remote rural countrysides and/or resort towns. More than 2M Boomers own more than three properties.
Where are they going? Scottsdale AZ, Sarasota FL and Lowcountry SC (Hilton Head, Bluffton, and Beaufort
Golden Millennials
Golden Millennials ages 35-40 account for 60% of all Millennial-owned lux properties. Motivated by sustainability and authenticity, these lux buyers “…have shown a greater propensity for smaller second-tier, exurban and suburban locations which offer ample space for work, school and access to amenities,” according to this Coldwell Banker report.
Where are these Golden Millennials going? Atlanta GA, Chicago and its metro area and Seattle.
Second-Home Owners
The pandemic spurred the quest for “getaway” properties. Nearly 70% of these second-home owners with a net worth of $5M+ own two or more properties.
Where are they going? Monterey CA, Coeur d’Alene ID, and Park City UT.
Urban Repatriates
As COVID restrictions are lifting, many, who at the onslaught of the pandemic fled large urban metros, are returning. Luxury attached property values jumped an average of +14% compared to those values in 2020 and 2019. As of August 2021, nearly 1.65M properties in downtown hubs are now owned by affluent people with a net worth of $5M+.
Where are these repatriates repatriating? San Francisco, Boston and Brooklyn.
Thanks to Coldwell Banker Real Estate/Coldwell Banker Global Luxury.
