Behind The Wealth Gains That Sent Luxury Real Estate Soaring

Luxury real estate has been on a tear for the last two years.

Massive wealth creation, combined with a transformation of living patterns led to soaring demand for larger homes — and more of them — which depleted inventory and sent home prices surging by the end of 2021.

Sales for luxury single-family homes rose 14.5% in 2021 while prices increased 20.3% from 2020. Sales for attached luxury homes saw a more dramatic uptick of 29.6% YOY and a 16.6% increase in prices, according to Coldwell Banker Global Luxury’s just-released The Report 2022.

Part of the reason for the insatiable demand? Historic double-digit wealth gains.

Data from Wealth-X shows that the world’s wealthy population (those with a net worth of $5 million+) grew 19.8% from 2020 to 2021, adding 597,550 individuals to bring the total population to 3,612,730 individuals worldwide. Their combined wealth rose 20.4% to over $75 trillion. This was a significant increase from 2020, which saw only a 2.1% YOY gain. U.S. wealth growth rates were higher in 2021, rising 24.8% in both total wealth and population of individuals with a net worth $5 million+ YOY.

For more insights, make sure to read the complete findings of The Report 2022.

The post Behind The Wealth Gains That Sent Luxury Real Estate Soaring appeared first on Coldwell Banker Global Luxury Blog – Luxury Home & Style.