Luxury Real Estate has been seeing an expansion over the years. The impact of COVID is still strong in the market as people decide to look for their dream house as well as expand into second and third homes. Movement in the market has caused luxury properties to be in high demand. New groups of influence are on the rise and the definition of luxury is changing.
Real estate wealth is surging. This investment has seen a huge increase in dollar volume from 2019-2021. The wealthy have always considered real estate to be a significant asset and they are reaping the benefits.
Wealth in the US and globally has increased significantly since 2019. In the US alone, there was over a 17% increase in wealth from 2019 to 2021 for individuals with a net worth of over $5 million.
We have also seen new Power Players emerge onto the market. These are bringing four sub-groups in to drive the market: Second Homeowners, Baby Boomers, Urban Repatriates, and Golden Millennials. These Power Player markets are also thriving. Areas like Sarasota and Atlanta are seeing huge increases in investments and New York, along with other major cities, are coming back into play after 2020.
The luxury market on a whole has been expanding. Many segments saw double and triple digit percentage gains and large numbers of properties sold. The sales volume of luxury homes has already surpassed 2020. This demand has depleted inventory and increased pressure on the market.