Luxury Real Estate Report & Forecast August 20, 2023
Buyer
Here is the current 2023 Luxury Real Estate Report by the staff at RE Luxe Leaders. At RE Luxe Leaders, we're passionate about digging into the data to spotlight trends that empower you to make savvy business choices.
Over the past year, a staggering $92 billion in wealth migrated out of New York and California, as affluent individuals chose to relocate to states with favorable tax structures. While the pandemic played a role, this wealth transfer was not solely its aftermath. Beneficiaries of this migration include states like Florida and Texas, notably due to their absence of income tax. In a striking example, Florida's income surged by $39 billion in 2021, marking a robust 39% increase from its previous year.
We delve into the performance metrics and patterns of premier luxury locales from August 2022 to July 2023.
Spotlighting cities that witnessed the most remarkable price inflations and deflations over the previous year.
Now, an analysis detailing states with a substantial luxury market presence and the median price transitions they experienced.
Current research on the international luxury real estate market offers several key insights. The core definition of luxury has significantly changed over the past few years, and ultra-high-net-worth individuals are now a significant driving force in the luxury home-buying market. These individuals, with their diversified investment portfolios, will continue to have significant influence in the market in the coming years.
The intrinsic value of purchasing real estate has never been higher, with wealthy buyers being motivated by lifestyle changes and opportunities in the current market environment. We anticipate a high volume of international buyers, a growing influence among younger millionaires, and a continued appetite for secondary homes.
Ownership of multiple homes, both in the U.S. and abroad, is becoming a trend among wealthy individuals. 72% of wealthy buyers said their future home purchase would be a second residence, vacation home, or rental property. Notably, Gen-X and millennials are leading the way in this trend. Furthermore, the propensity to own a home abroad is on the rise due to the strength of the U.S. dollar and rising costs of U.S. living. Europe, Central America, and Asia are among the increasingly popular locations for these buyers.
Additionally, the number of global millionaires is at its highest point in history and is expected to surge by 40% by 2026. Major U.S. markets and traditional centers of wealth, continue to be a significant draw for affluent international buyers. Cities in Asia, such as Singapore, Beijing, and Guangzhou, have regained their position in the top global cities with primary and secondary homeowners as borders have reopened.
When it comes to the factors influencing the choices of luxury real estate buyers, property location, home condition, and amenities rank as the highest priorities. Open floor plans, bespoke architectural elements, neutral color palettes, and tech-friendly homes with automation systems, energy-efficient appliances, and electric vehicle charging stations are among the top trends.
In the luxury real estate market, it's all about identifying opportunities and staying one step ahead. By closely monitoring trends and leveraging the insights we've shared here, you're positioning yourself for growth and success in this thrilling industry. Remember, in real estate, as in life, the key to success lies in understanding the terrain and charting your path with confidence and foresight.
Recently, we conducted a keynote presentation where we delved deeper into these trends. If you're interested in gaining valuable insights from our research and analysis, you can access it here.
The data used in the report is focused on the top one-third of markets in the United States and is collected on a monthly basis. The data is used to identify trends in luxury real estate at the area level, rather than focusing on individual properties. The report aims to provide insight into luxury real estate trends across the country, by analyzing data from the most affluent and desirable markets in the United States.
We hope that the information provided is helpful in guiding you on your journey to building a thriving real estate business.
As luxury real estate consultants, coaches, and advisors for Proptech, Fintech, Brands, Brokerages, Teams, and Elite agents, we are confident that our resources, insights, and strategies can help you achieve your goals.
Remember, success in the luxury real estate industry starts with knowledge and strategy, and we are here to provide you with both.
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