The rich have certainly gotten richer according to the latest data. In fact, the world’s affluent population defined as those making $5 million + incomes grew by 19.8% in 2021. In the U.S. alone, this figure rose by 24.8%. Overall, stock market gains, rising home equity, increased savings and the cryptocurrency boom have all contributed to a massive expansion of wealth and the sheer number of affluent individuals across the globe.This has resulted in an extraordinary paradigm shift in the luxury real estate market since 2020.
The growth in the world’s affluent population has resulted in the addition of 597,550 individuals to bring their total population to 3,612,730 individuals worldwide. Their combined wealth rose 20.4% to over $75 trillion, which was a significant jump from the 2.1% year-over-year increase seen in 2020. This explosion in wealth has certainly spilled over into the luxury real estate market.
Defined as the top 10% of any given market, luxury single-family real estate sales in the U.S. grew by 14.5% in 2021. Furthermore, prices for these homes rose by 20.3% as compared to 2020. Sales of attached luxury homes saw a more pronounced increase of 29.6% year-over-year and a 16.6% increase in prices.
The growth in the world’s affluent population is certainly impacting South Florida real estate. Perhaps there is no location more desirable for international buyers than Miami, FL and the surrounding areas. In addition, we are also seeing the luxury real estate market expand into secondary cities. Of course, the popularity of work-from-home opportunities has completely removed all barriers for real estate in general. The expectation is that these trends will continue resulting in South Florida continuing to lead the country in housing demand.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!