Affluent home buyers are enjoying the upper hand in today’s luxury market, and they are cautiously optimistic about the future. According a survey by YouGov Affluent Perspective, ultra-wealthy buyers in the U.S. and abroad are showing resilience against geopolitical uncertainties and global economic headwinds.
Ultra-wealthy home buyers are defined as individuals with over $50 million in net worth. CNBC reports that there are more than 123,000 people in this growing category, with this demographic increasing by 53% in the past 5 years alone. Most reside in North America, where the rate of growth among the ultra-rich is double that of Asia, and growing significantly faster than Europe.
Interestingly, U.S. luxury home buyers are a bit more cautious than their global counterparts, possibly due to a contentious election year. About 25% of wealthy individuals in the U.S. intend to buy a new home within 1 to 3 years. Meanwhile, 45% of wealthy individuals from other countries intend to buy a new home within 1 to 3 years.
This is good news for luxury home sellers who have endured slow sales and softening prices. In fact, the surveyed group shows less propensity to sell than buy. Only 18% of affluent individuals in the U.S. expect to sell a home in the next 1 to 3 years. Only 23% of wealthy individuals from other countries intend to sell within the next 1 to 3 years. Overall, there is stronger interest in buying!
In other words, we could be seeing a very different Houston luxury market in future months. Affluent individuals are growing in number around the world, and the ultra-wealthy tend to own 2 or more homes. Once the U.S. election year is over, and fiscal polices made known, we could reasonably expect that more U.S. luxury buyers will get off the fence.
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079