Are Millionaires Buying Homes in 2024?
Written by
Sean Fisher, AI Editor
Edited by
Sean Fisher
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The allure of luxury real estate continues to captivate the ultra-wealthy, with 2024 witnessing a significant portion of America’s elite planning to expand their property portfolios. A recent study by Douglas Elliman and Knight Frank reveals that a quarter of American ultra-high-net-worth individuals (UHNWIs), those with a net worth exceeding $30 million, are poised to acquire residential properties this year. The typical UHNWI already boasts ownership of four homes, with a notable 25% of their residential assets situated beyond their home country’s borders.
The Reason
In this year’s luxury real estate market, “lifestyle” and “investment” emerge as the primary drivers for these affluent buyers, overshadowing traditional concerns such as taxes and safety. This shift underscores a growing emphasis on not just opulent living but also the potential for lucrative returns on investment.
The Economy
Despite challenges like constrained supply and escalating prices, the luxury real estate sector has shown remarkable resilience. The U.S. market, in particular, recorded 34 transactions exceeding $50 million in 2023, slightly down from 2022 but significantly higher than pre-pandemic figures. This endurance is partly attributed to stabilizing interest rates, which could potentially lead to an uptick in luxury property supply and, subsequently, more transactions.
Where They’re Buying in 2024
Forecasters predict Miami to lead the U.S. luxury market in 2024, with an anticipated price growth of 4%. Following closely are New York and Los Angeles, with projected price increases of 2% and 1%, respectively. On the global stage, Auckland, New Zealand, is expected to dominate with an impressive 10% price growth, highlighting the international appeal of the luxury real estate market.
American buyers are making their presence felt in overseas luxury markets, particularly in London, where they now dominate as the primary foreign purchasers of properties valued above $10 million. Their influence is also growing in European destinations such as Italy, France, and Portugal.
However, the purchasing power of $1 million has seen a decline in prime real estate markets. In Monaco, the most expensive market globally, $1 million secures a mere 172 square feet of prime real estate. By contrast, in New York, the same amount can fetch 367 square feet, illustrating the varying degrees of affordability across different locales.
Conclusion
In conclusion, millionaires are indeed actively purchasing homes in 2024, driven by the twin motives of lifestyle enhancement and investment potential. The luxury real estate market remains buoyant, with Miami, New York, and Los Angeles being the preferred destinations for these affluent buyers in the U.S. Internationally, cities like Auckland, London, and Dubai continue to attract the ultra-wealthy, underscoring the global appeal of luxury properties.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
More From GOBankingRates
