Well-off Americans are continuing to pour money into expensive properties
Amid economic headwinds and market volatility, affluent Americans are investing heavily in luxury real estate—defying expectations of a slowdown in high-end property purchases.
According to a recent Wall Street Journal report, US home sales priced at $10 million or more have surged in several affluent markets since February. This uptick comes despite high interest rates, persistent inflation, and ongoing recession concerns.
In Palm Beach, Florida, sales of homes above $10 million rose by 50% between February 1 and May 1 compared to the same period last year. Aspen, Colorado, saw a 43.75% increase, while Los Angeles County and Manhattan recorded gains of 29% and 21%, respectively.
Analysts suggest that real estate, particularly luxury property, is being used by the ultra-wealthy as a hedge against inflation and market instability. “The chance of taking a hit in the stock market is a bit too high for the reward, especially when we consider inflation,” said Dan Herbatschek, an entrepreneur and former mathematician. He recently agreed to purchase a $12.25 million condo in New York’s Upper East Side, alongside several investment properties.
Rising property values—often driven by higher costs for materials and labor—along with inflation-adjusted rental income, have made real estate appealing to those with substantial capital. Billionaire industrialist David MacNeil recently expanded his holdings in Manalapan, Florida, adding a $55.5 million estate to a neighboring property and bringing his total investment in the area to $94 million.
“There’s really no bad time to buy great properties,” MacNeil said. “Scared money chases bargains, and smart money chases excellence.”
Although these multi-million-dollar deals dominate headlines, investment opportunities have also become more accessible to everyday Americans through platforms like Arrived and Homeshares. These companies allow individuals to invest in real estate with modest minimums—some as low as $100—offering exposure to income-generating homes without full ownership responsibilities.
Meanwhile, some wealthy investors are balancing luxury property acquisitions with traditional stock market investments. Todd Green, who recently bought a $17.8 million vacation home in Vail, Colorado, remains invested in equities. Citing Warren Buffett’s long-term approach, Green said short-term fluctuations do not deter him.
Buffett has long advocated for low-cost, diversified index funds, recommending the S&P 500 as a simple and effective way for most people to build wealth over time—regardless of income level.
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