Now that the pandemic is officially fading, with COVID-19 no longer classified as a global emergency by the World Health Organization, it's time to reflect on the long-term effects of decisions made by the wealthy during the past three years.
Priorities Have Changed
The pandemic forced many people to reevaluate their priorities and question if they were truly living their best lives. As a result, there has been a significant shift in attitudes towards finding fulfillment outside of the work environment, creating live-work arrangements, and seeking purpose-driven lifestyles.
Affluent individuals continue to prioritize finding homes that align with their desired lifestyles. According to Coldwell Banker Global Luxury, there has been a 10% increase in the number of affluent individuals owning three or more homes by the end of 2022. With remote work becoming permanent for many high-income earners, secondary homes have transitioned from a niche market to a mainstay of the affluent lifestyle, allowing for generational wealth creation and quality time spent in memorable locations.
The Wealthy are on the Move
The ability to work remotely has prompted a shift in the locations favored by the wealthy. While traditional wealthy cities like New York, Los Angeles, and Toronto still maintain their status, other locations are experiencing growth due to factors such as the allure of vacation destinations, rural areas, emerging tech and business hubs, and changes in tax policies. Cities like Austin, Miami, Scottsdale and Oakville have become notable migration destinations. Check out this Scottsdale home listed by a Coldwell Banker Colleague.
As the demand for luxury homes continues to rise globally, builders and developers are creating innovative solutions to cater to this new wave of home seekers. New luxurious developments have emerged in cities such as New York, Dubai, Monaco, and Malaysia. Previously seasonal destinations like Park City, Naples, and the Okanagan are now seeing increased demand as more affluent buyers choose to stay or maintain multiple residences.
Demand Drives Innovative Thinking
Despite challenges in supply chains and trades, some affluent buyers are opting for renovations or building new homes due to rising prices and limited inventory. Move-in ready homes are still in high demand, but as inventory dwindles, deals for properties that need work may become scarcer.
In this dynamic and evolving market, it's crucial to work with a knowledgeable Realtor who understands the preferences, trends, and demands. An analytical approach and realistic expectations are essential for successful buying and selling experiences in today's real estate market. Want to work together? Let's chat!
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