- High net-worth individuals (HNWIs) purchasing luxury properties in America have demonstrated a preference for California.
- An influx of personal wealth has reportedly led to an increased interest in luxury housing.
- Los Angeles has the highest percentage of homes listed above both $1m and $5m.
In a report looking at luxury property investments, Point2 discovered that California, known as the Golden State, is currently dominating the American market.
The report found that prices, sales and supply have remained stable in the US, despite insecurity within the housing market. Demand for upscale properties has increased in the first half of 2023.
While carrying out the analysis, Alexandra Ciuntu evaluated the luxuriousness of properties across the US, using a minimum price point of $1m.
The study observed the for-sale housing stock of 30 large cities, 30 mid-sized cities and 30 small cities, ranking them based on the number of wealthy homes available.
In the United States, Los Angeles has the most expensive real estate market of any large city, with almost 64% of all listings valued at more than $1m. LA also has the highest percentage of listed homes priced at more than $5m.
In terms of homes priced at more than $1m, Los Angeles was followed closely by San Fransisco (62.1%), San Jose (60.6%) and San Diego (58.6%).
In the ultra-luxury property market, where homes are worth more than $5m, Boston has the second highest number of these properties (9.4%), preceded only by Los Angeles. San Diego is in third place with 7.6%, and New York City is just behind with 7.4%.
East Honolulu (Hawaii) had the most significant proportion of luxury homes available for a small city, with 70% of listings priced over $1m.
The increased demand for luxury housing has been credited to a surge of personal wealth and a greater focus on home life post-pandemic.
This report will undoubtedly interest HNWIs. Wealthy individuals will need to utilise online money transfer services when looking to make significant overseas investments, such as luxury properties.
For UK-based investors considering purchasing property abroad, there is a need for secure international payments to allow for quick and secure transfers between different countries.
Despite the ongoing economic uncertainty, the Institute for Luxury Home Marketing reported a steady rise in the demand for luxury properties, suggesting that prices, sales and stock levels remained stable.
For HNWIs looking to purchase luxury property overseas, compare foreign exchange rates using our online money transfer comparison tool.
